LECTURE 8: ASSGINMENT # 2

TOTAL MARKS 10 TOTAL QUESTIONS 02

Class: BSAF-1 (A)

Semester: Spring-2020

AF1104 Introduction to Financial Accounting

GUIDE LINES TO BE FOLLOWED WHILE SUBMITTING THE ASSIGNMENT.

1. FILE FORMAT: It should be in a Word format
2. FONT: Use clear & readable font & black text should be used while using the White
background
3. SPACING: Use the space 1.5 between lines
4. HEADINGS: Use bold for headings, not underlines
5. TITE PAGE: Title page must be included, with the following main data
 The title of Assignment
 The number of Assignments submitted
 The Course Number & Name
 The due date
 Your Name & The Registration Number

6. NUBMBERING:
 Number all pages except the title page.
 Tables and figures must be numbered and clearly labelled. Table captions
are placed above the table, while captions for a figures go below the figure, if
needed.
 Don't number the items in a reference list

7. HEADERS & FOOTERS:

Insert a header or footer on each page (except the title page). It should contain:

 Your name (Complete)

 Your student number
 the course number

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LECTURE 8: ASSGINMENT # 2
 the assignment number
 The page number.

8. STAPLING YOUR ASSIGNMENT

 Staple multi-page assignments in the top left corner only.
 Put your assignment in a plastic folder OR File Cover in a proper way.
AFTER ABOVE GUIDE LINES, YOUR ASSIGNMENT SHOULD START AS BELOW:

ASIF ALI KHOKHAR

INSTRUCTOR
AF1104 Introduction to Financial Accounting
Spring-2020

Problem # 1

TRC Graphics, a sole proprietorship, adjusts and closes its books each month. On May 31, 2001, before adjusting
entries are recorded, the trial balance for TRC Graphics is as shown below

Solution

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LECTURE 8: ASSGINMENT # 2
SOLVE THE BELOW TWO MAIN QUESTIONS FOR YOUR ASSIGNMENT
1. TRC Graphics, a sole proprietorship, adjusts and closes its books each month. On May 31, 2001, before
adjusting entries are recorded, the trial balance for TRC Graphics is as shown below:

TRC GRAPHICS
TRIAL BALANCE
MAY 31, 2001
Explanation Dr Cr
Cash 10,500
Account Receivable 3,000
Supplies 2,250
Equipment 30,000
Accumulated Depreciation: Equipment 6,500
Accounts payable 2,500
T.R Cumming, Capital 23,750
T.R Cumming, Drawing 2,500
Fee Earned 24,000
Supplies Expense 600
Salaries Expense 4,000
Rent Expense 2,400
Utilities Expense 1,500
56,750 56,750
The equipment was purchased in 2000 and has an estimated life of five years. TRC Graphic estimates that
supplies on hand at May 31,201, total approximately $1,900

a. Compute the amount of depreciation expense on the equipment for May. Give the adjusting entry to
record depreciation on the equipment at the end of May.
b. Compute supplies expense for May. Give the adjusting entry to record supplies expense for the month
of May
c. What is amount of net income or loss reported in TRC Graphics’ income statement for the month of
May? Show computation

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