Professional Documents
Culture Documents
Comprehensive Exercise
Comprehensive Exercise
A. For each of the transactions listed below, work out the changes for the transaction and
record these changes in the T-accounts. After finishing the transactions, calculate and
show the account balances. (28 marks)
Transactions
1. On October 1, 2015, Mr. Simpson started his business with the following assets and
liabilities: Bank $4651; Equipment $2465; Automobile $8460; A/P—Ace Finance
Co. $2850; and A/P—Grand’s Stationers $1000.
2. Performed a service for S. Stewart and received $200 cash in payment.
3. Received a bill from Grand’s Stationers for $400 of supplies purchased on account.
4. Issued a cheque to O. Mack for wages, $500.
5. Received a bill from Star Oil Co. for gasoline and oil used in the business car, $60.
6. Issued a cheque to Ace Finance Company for regular monthly payment, $400.
7. Issued a cheque to J. Mahoney for the rent for the month, $700.
8. Issued a bill to J. Morrison for services performed, $500.
9. Issued a cheque for postage stamps, $30.
10. Issued a cheque for car repairs, $120.
11. Received a cheque from J. Morrison on account, $300.
12. Issued a cheque to R. Gordon for cleaning the office, $100.
13. Issued a cheque to P. Simpson, the owner, for personal use, $800.
14. Issued a bill to R. Arthur for services performed, $1000.
B. Balance the ledger of P. Simpson by means of a trial balance dated October 31, 2015.
(10 marks)
C. Prepare an income statement for P. Simpson as of October 31, 2015. (Thinking 9 Marks)
D. Prepare the equity section of the balance sheet for P. Simpson as of October 31, 2015.
(Thinking 5 Marks)