Master of accounting and auditing

Course: Financial accounting

Dr. Naser Abdel Kareem

Student name: Abdallah Namrouti

Assignment- 1
Q (9):
Net
Item Total Assets Total Liabilities Owner’s Equity
Income
Incorrect balances $35,000 $115,000 $45,000 $70,000
Effects of:
Depreciation -10,000 -10,000 -10,000
Wages -7,000 7,000 -7,000
Rent 6,000 6,000 6,000
Correct Balances $24,000 $111,000 $52,000 $59,000

Q (10) A:
1- Dr. Accounts receivable 1,000
Cr. Service Revenue 1,000
*** record a service revenue but not yet received.

2- Dr. Rent Expense 700

Cr. Prepaid Rent 700
* create a prepaid rent expense adjusting entry.

3- Dr. Supplies Expense 550

Cr. Supplies 550
* record a supplies used.

4- Dr. Dep. Expense 250

Cr. Accumulated Dep. – Equipment 250
* record a depreciation expense of equipment.

5- Dr. Interest Expense 140

Cr. Interest Payable 140
* record an accrued interest expense.

6- Dr. Salaries & Wages Expense 1270

Cr. Salaries & Wages Payable 1270
* record an accrued salaries & wages expenses.

7- Dr. Unearned Service Revenue 500

Cr. Service Revenue 500
* The unearned revenue is earned
Q (10) B:
MORNING JACKET

Income Statement

For The Year Ended 31st December, 2019

Revenues
Service Revenues 9,500
Total Revenues 9,500

Expenses

Depreciation Exp. – Equipment (250)

Supplies Exp. (550)

Rent Exp. (1200)

Salaries and Waged Exp. (5130)

Interest Exp. (140)

Total Expenses (7,270)

Income Before Tax 2,230