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Account One

This document provides instructions for an accounting assignment involving Byte Repair Service. It includes: 1) A trial balance as of December 31, 2013 and summarized transactions for January 2014. Students are asked to record journal entries for the transactions and post to a T-account ledger. 2) Seven additional questions regarding accounting principles, systems, internal controls, and recording various transactions. 3) One question involves discounting a note receivable and determining related amounts. The assignment requires detailed explanations and computations and is to be completed individually. It is due on February 14, 2022.

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135 views2 pages

Account One

This document provides instructions for an accounting assignment involving Byte Repair Service. It includes: 1) A trial balance as of December 31, 2013 and summarized transactions for January 2014. Students are asked to record journal entries for the transactions and post to a T-account ledger. 2) Seven additional questions regarding accounting principles, systems, internal controls, and recording various transactions. 3) One question involves discounting a note receivable and determining related amounts. The assignment requires detailed explanations and computations and is to be completed individually. It is due on February 14, 2022.

Uploaded by

hana kibebew
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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RIFT VALLEY UNIVERSITY

MODJO CAMPUS
Department Of Management Extension student 2013 entry
Assignment Weight: 20%
Fundamental Accounting I Assignment
General Directions:
 Attempt each of the following questions according to their respective instructions and provide
detailed explanations and show all the necessary computations as needed.
The assignment should be only completed individually and copying from others disqualifies
results.
Assignment due date: Feb 14, 2022
Q2. Mark Hocken berry owns and manages a computer repair service, which had the Following
trial balance on December 31, 2013 (the end of its fiscal year).
Byte Repair Service, Inc.
Trial Balance
December 31, 2013
Cash $ 8,000,
Accounts Receivable 15,000
Supplies 13,000
Prepaid Rent 3,000
Equipment 21,000
Accounts Payable $19,000
Share Capital—Ordinary 30,000
Retained Earnings 11,000
Summarized transactions for January 2014 were as follows.
1. Advertising costs, paid in cash, $1,000.
2. Additional supplies acquired on account $4,000.
3. Miscellaneous expenses, paid in cash, $1,700.
4. Cash collected from customers in payment of accounts receivable $13,000.
5. Cash paid to creditors for accounts payable due $15,000.
6. Repair services performed during January: for cash $5,000; on account $9,000.
7. Wages for January, paid in cash, $3,000.
8. Dividends during January were $2,000.
Instructions
(a) Open T-accounts for each of the accounts listed in the trial balance, and enter the opening

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Balances for 2014.
(b) Prepare journal entries to record each of the January transactions. (Omit explanations.)
(c) Post the journal entries to the accounts in the ledger. (Add accounts as needed.)

(d) Prepare a trial balance as of January 31, 2014.

Q2.List and explain the principles of accounting systems

Q3. How Accounting System Installation and Revision could be done as well Guidelines to Strong
Internal Control
Q4. Write types Data Processing Methods with detail explanation by giving example in each types
Q5. you have just been employed by a relatively small merchandising business that records its
revenues only when cash is received and its expense only when cash is paid you are aware of the
fault that the enterprise should record its revenues and expenses on the accrual basis. Would
changing to the accrual basis violate the principle of consistency?

Q6. Discuss in detail internal control for cash over receipt and payment procedures &describe how
bank accounts can help an effective cash management.
Q7.If a company selects the allowance method to treat uncollectible, estimation is required either
based on sales or analysis of receivables. Prepare journal entries to record the following transactions
entered in to by Meskel Company during the year 20X2.
September 1- Received a Br. 10,000, 12%, 60-day note from Yasin Co. as full Settlement of his
open account.

October 20- Sold merchandise on account to Heaven Co. for Br 25,000 by receiving a 90-day,
10% note.

October 31- Received full payment from Yasin Co. for notes received on September 1.

December 31- Record the adjusting entry required for accrued interest from October 20.

Transaction. (Assume that the Accounting period ends on December 31.)

Q8.Meskerem Co. holds a 90-day, 10% note for Br. 100,000 dated June-12 that was received from a
customer on account. On June 30, the note is discounted at Borena Bank at the rate of 12.5 %.
a) Determine the maturity value of the note.
b) Determine the number of days in the discount period
c) Determine the amount of the discount.
d) Determine the amount of the proceeds
e) Present the journal entry required to record the discounting of the note on June 30.

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