Answer for the course of principle accounting I individual assignmen t

II. True or false

1. True 11. True

2. False 12. False

3. False 13. True

4. False 14. True

5. True 15. True

6. True 16. Ture

7. True 17. False

8. False 18. True

9. True 19. True

10. True 20. True

II choose

1. C 8. A 15. C

2. B 9. E 16. B

3. A 10. D 17. D

4. A 11. C 18. E

5. E 12. B 19. B

6. A 13. B 20. E

7. C 14. B

III short answer

1,

Assets = Liabilities + Capital + Revenues - Expenses - Drawings

Transaction 1:

Received cash from the sale of an old desk, birr 200.

A. Identify the items affected:

- Assets: Cash (+)

- Capital: Revenue (+)

B. Determine the new balances:

- Assets: Cash = 200

- Capital: Revenue = 200

C. Check the equation:

Assets (200) = Liabilities + Capital (200) + Revenues - Expenses - Drawings

Transaction 2:

Received cash from the week's sales, birr 1000.

A. Identify the items affected:

- Assets: Cash (+)

- Capital: Revenue (+)

B. Determine the new balances:

- Assets: Cash = 1200 (200 + 1000)

- Capital: Revenue = 400 (200 + 200)

C. Check the equation:

Assets (1200) = Liabilities + Capital (400) + Revenues - Expenses - Drawings

Transaction 3:

Paid cash for monthly rent, birr 200.

A. Identify the items affected:

- Assets: Cash (-)

- Expenses: Rent (-)

B. Determine the new balances:

- Assets: Cash = 1000 (1200 - 200)

- Expenses: Rent = 200

C. Check the equation:

Assets (1000) = Liabilities + Capital (400) + Revenues - Expenses (200) - Drawings

Transaction 4:

Paid cash to owner for personal use, birr 200.

A. Identify the items affected:

- Assets: Cash (-)

- Drawings (-)

B. Determine the new balances:

- Assets: Cash = 800 (1000 - 200)

- Drawings: = 200

C. Check the equation:

Assets (800) = Liabilities + Capital (400) + Revenues - Expenses (200) - Drawings (200)

Transaction 5:

Paid cash for repair of an office chair, birr 40.

A. Identify the items affected:

- Assets: Cash (-)

- Expenses: Repair (-)

B. Determine the new balances:

- Assets: Cash = 760 (800 - 40)

- Expenses: Repair = 40

C. Check the equation:

Assets (760) = Liabilities + Capital (400) + Revenues - Expenses (240) - Drawings (200)

Transaction 6:

Received cash from the week's sales, birr 800.

A. Identify the items affected:

- Assets: Cash (+)

- Capital: Revenue (+)

B. Determine the new balances:

- Assets: Cash = 1560 (760 + 800)

- Capital: Revenue = 600 (400 + 200)

C. Check the equation:

Assets (1560) = Liabilities + Capital (600) + Revenues - Expenses (240) - Drawings (200)

Transaction 7:

Paid cash to Chaltu Equipment Company for part of the amount owed, birr 200.

A. Identify the items affected:

- Assets: Cash (-)

- Liabilities: Accounts Payable (-)

B. Determine the new balances:

- Assets: Cash = 1360 (1560 - 200)

- Liabilities: Accounts Payable = 200

C. Check the equation

Assets (1360) = Liabilities (200) + Capital (600) + Revenues - Expenses (240) - Drawings (200)

Transaction 8:

Paid cash for supplies, birr 150.

A. Identify the items affected:

- Assets: Cash (-)

- Expenses: Supplies (-)

B. Determine the new balances:

- Assets: Cash = 1210 (1360 - 150)

- Expenses: Supplies = 390 (240 + 150)

C. Check the equation:

Assets (1210) = Liabilities (200) + Capital (600) + Revenues - Expenses (390) - Drawings (200)

Transaction 9:

Paid cash for a new office desk, birr 600.

A. Identify the items affected:

- Assets: Cash (-)

- Expenses: Office Desk (-)

B. Determine the new balances:

- Assets: Cash = 610 (1210 - 600)

- Expenses: Office Desk = 600

C. Check the equation:

Assets (610) = Liabilities (200) + Capital (600) + Revenues - Expenses (990) - Drawings (200)

Transaction 10:

Paid cash for the heating bill, birr 110.

A. Identify the items affected:

- Assets: Cash (-)

- Expenses: Heating (-)

B. Determine the new balances:

- Assets: Cash = 500 (610 - 110)

- Expenses: Heating = 1100 (990 + 110)

C. Check the equation:

Assets (500) = Liabilities (200) + Capital (600) + Revenues - Expenses (1100) - Drawings (200)

Transaction 11:

Paid cash for the gasoline bill, birr 150.

A. Identify the items affected:

- Assets: Cash (-)

- Expenses: Gasoline (-)

B. Determine the new balances:

- Assets: Cash = 350 (500 - 150)

- Expenses: Gasoline = 1250 (1100 + 150)

C. Check the equation:

Assets (350) = Liabilities (200) + Capital (600) + Revenues - Expenses (1250) - Drawings (200)

Note: For the subsequent transactions, we would continue following the same process.

Please note that in order to calculate new balances and check the equation, we would need additional
information regarding liabilities and capital. The provided information only includes transactions related
to assets and expenses.

2,

1. Bank Reconciliation:

Dender Plumbing Service

Bank Reconciliation Statement

June 30, 1996

Chequebook Balance on Cheque Stub No. 201: Birr 407.20

Add: Outstanding Deposit (June 29): Birr 104.50

Adjusted Bank Balance: Birr 511.70

Less: Outstanding Cheques:

Number 196: Birr 29.88

Number 197: Birr 17.82

Number 201: Birr 45.76 (already included in the
chequebook balance)

Total Outstanding Cheques: Birr 93.46

Adjusted Book Balance: Birr (407.20 - 93.46) = Birr 313.74

Reconciling Items:

Adjusted Bank Balance: Birr 511.70

Adjusted Book Balance: Birr 313.74

Difference: Birr 197.96

Explanation:

The difference of Birr 197.96 might be due to unidentified deposits or withdrawals, bank errors, or
additional outstanding cheques not listed on the bank statement.

2. Recording the Bank Service Charge on a Cash Journal Memorandum Number 15:

Dender Plumbing Service

Cash Journal

Memorandum Number 15

June 30, 1996

| Date | Account | Debit (Birr) | Credit (Birr) |

|--------------|--------------------------------------|-----------------|-----------------|

| June 30, 1996 | Bank Service Charges | 5.10 | |

| June 30, 1996 | Cash | | 5.10 |

Explanation:

The bank service charge of Birr 5.10 is recorded as a debit to the "Bank Service Charges" account,
indicating an increase in expenses. It is then recorded as a credit to the "Cash" account, representing a
decrease in cash due to the payment of the bank service charge.