Haramaya University

College of Business and Economics

Department of Accounting and Finance
Fundamental of Accounting I: Individual Assignment II
Submission date: October 8, 2023
1. On October 1, 2010, Cody Doerr established Banyan Realty, which completed the following transactions during
the month:
a. Cody Doerr transferred cash from a personal bank account to an account to be used for the business,
$17,500.
b. Purchased supplies on account, $1,000.
c. Earned sales commissions, receiving cash, $12,250.
d. Paid rent on office and equipment for the month, $3,800.
e. Paid creditor on account, $600.
f. Withdrew cash for personal use, $3,000.
g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
h. Paid office salaries, $3,100.
i. Determined that the cost of supplies used was $725.
Instructions
i. Journalize entries for transactions
ii. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the
appropriate letter to the left of each amount to identify the transactions. Determine the account balances,
after all posting is complete. Accounts containing only a single entry do not need a balance.
iii. Prepare an unadjusted trial balance as of October 31, 2010.
iv. Determine the following:
a) Amount of total revenue recorded in the ledger.
b) Amount of total expenses recorded in the ledger.
c) Amount of net income for October.
2. On August 31, 2010, the following data were accumulated to assist the accountant in preparing the adjusting
entries for Cobalt Realty:
a. Fees accrued but unbilled at August 31 are $9,560.
b. The supplies account balance on August 31 is $3,150. The supplies on hand at August 31 are $900.
c. Wages accrued but not paid at August 31 are $1,200.
d. The unearned rent account balance at August 31 is $9,375, representing the receipt of an advance payment
on August 1 of three months’ rent from tenants.
e. Depreciation of office equipment is $1,600.
Instructions: Journalize the adjusting entries required at August 31, 2010.

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3. Misfire Company is a small editorial services company owned and operated by Pedro Borman. On August 31,
2010, the end of the current year, Misfire Company’s accounting clerk prepared the unadjusted trial balance
shown on the next page.
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at August 31, $1,800.
b. Supplies on hand at August 31, $750.
c. Depreciation of building for the year, $2,000.
d. Depreciation of equipment for the year, $5,000.
e. Rent unearned at August 31, $2 ,850
f. Accrued salaries and wages at August 31, $2,800.
g. Fees earned but unbilled on August 31, $12,380.

Instructions
a. Journalize the adjusting entries. Add additional accounts as needed.
b. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial
balance.
4. For the past several years, Emily Page has operated a part-time consulting business from her home. As of June
1, 2010, Emily decided to move to rented quarters and to operate the business, which was to be known as
Bottom Line Consulting, on a full-time basis. Bottom Line Consulting entered into the following transactions
during June:
June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies,
$2,000; and office equipment, $11,500. There were no liabilities received.
1. Paid three months’ rent on a lease rental contract, $6,000.
2. Paid the premiums on property and casualty insurance policies, $2,400.
4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned
fees, $2,700.

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 5. Purchased additional office equipment on account from Office Depot Co., $3,500.
6. Received cash from clients on account, $3,000.
10. Paid cash for a newspaper advertisement, $200.
12. Paid Office Depot Co. for part of the debt incurred on June 5, $750.
June 12. Recorded services provided on account for the period June 1–12, $5,100.
14. Paid part-time receptionist for two weeks’ salary, $1,100.
17. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500.
18. Paid cash for supplies, $750.
20. Recorded services provided on account for the period June 13–20, $3,100
24. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150.
26. Received cash from clients on account, $6,900.
27. Paid part-time receptionist for two weeks’ salary, $1,100.
29. Paid telephone bill for June, $150.
30. Paid electricity bill for June, $400.
30. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500.
30. Recorded services provided on account for the remainder of June, $1,000.
30. Emily withdrew $5,000 for personal use.
Instructions
I. Journalize each transaction in a two-column journal,
II. Post the journal to a ledger using T account and determine the account balance
III. Prepare an unadjusted trial balance.
IV. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts
(5) and (6).
a. Insurance expired during June is $200.
b. Supplies on hand on June 30 are $650.
c. Depreciation of office equipment for June is $250.
d. Accrued receptionist salary on June 30 is $220.
e. Rent expired during June is $2,000.
f. Unearned fees on June 30 are $1,875.
V. Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
VI. Journalize and post the adjusting entries.
VII. Prepare an adjusted trial balance.
VIII. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
IX. Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed
accounts by inserting a line in both the Balance columns opposite the closing entry.
X. Prepare a post-closing trial balance.