Arba Minch University

Department of Accounting and Finance

Worksheet for 2nd year management students
Course: Fundamental of Accounting I

1. On March 1, 2020, Mr. Adam Boris forms an athletic shoe consulting business. The
marketing plan for the business is to focus primarily on consulting with schools,
sports clubs, amateur athletes, and other who places order of athletic shoes with
manufacturers. Boris is the owner and the manager of his new company named Fast
Forward. The following are the financial activities of the enterprise during the month
of Mar. 2020.
Mar. 1. Adam Boris invested Birr 30,000 cash in fast forward.
3. Fast Forward pays Birr 2,500 cash for supplies.
5. Fast Forward pays Birr 26,000 for equipment
8. Fast Forward purchased Birr 7,100 of supplies on account
11. Fast forward provides consulting services and collected Birr 4,200 Cash.
12. Fast Forward entered into a contract with a client to provide 30 days
consulting service for a fixed fee of Birr 2,700.
15. Fast Forward pays Birr 1,000 cash for the March rent.
16. Fast Forward pays Birr 700 cash for employees’ salary.
19. Fast forward provides consulting services of Birr 1,600 and rents its test
facilities for Birr 300. The customer is billed Birr 1,900 for these services.
21. Fast Forward receives Birr 1,900 cash from the client billed on Mar. 19.
23. Fast Forward pays Birr 4,000 cash for supplies purchased on Mar. 8
24. Adam Boris withdrew Birr 600 cash from Fast Forward for personal expense.
26. Fast Forward receives Birr 3,000 cash advance collection from client
promising to provide consulting service for fixed fee of Birr 3,000 for 60 days
starting from May 27th.
27. Fast Forward pays Birr 2,400 cash for insurance policy premium covering two
years, starting Mar. 1, 2020.
28. Fast Forward pays Birr 120 cash for supplies
29. Fast Forward pays Birr 230 cash for Mar. Utilities

Prepared by: Wudneh A.

Requirement:

A. Record the above transactions in the general journal.

B. Post the recorded journal entries to appropriate accounts in the ledger as of
march 31, 2020
C. Prepare unadjusted trial balance from your ledger accounts as of march 31, 2020.
D. Prepare adjusting entries as of the March 31, 2020.
E. Prepare the adjusted trial balances as of the March 31, 2020.

F. Prepare financial statements, closing entries and post-closing trial balance for
march 31, 2020.

Additional Information: -
1. The cost of supplies used during Mar. was $1, 050.
2. Fast Forward depreciates its equipment 17.31% of its cost per year.
3. On Mar. 29, 2020 Fast forward hired a new employee who earns $70 per day. As
of Mar. 31, 2020 three days of this employee’s salary was accrued.
4. As of Mar. 31, Fast Forward provides 20 days consulting service for the contract
signed on Mar.12.

Prepared by: Wudneh A.