acc100assignment1

I. P132 PSB2.9

a) Working capital.

b) Current ratio.

c) Current cash debt coverage ratio.

d) Debt to total assets ratio.

e) Cash debt coverage ratio.

f) Profit margin ratio.

G) Return on assets ratio

III.Apr.1 Shareholders invested $13 000 cash in exchange for shares.

1.Borrowed $2000 from the bank for 2years.

2.Hired a personal assistant at a salary of $300 per week , payable monthly.

2.Paid office rent for the month $700.

3.Purchased an equipment for cash $3000.

4.Paid cash $2400 for a 1 –year insurance policy

5.Purchased architectural suppliers on account from Halo Ltd，$1 500.

https://www.wendangku.net/doc/415651401.html,pleted blueprints on a carport and invoiced Speedy $2500 for services .

11.Received $500 cash advance from R.Welk for the design of a new home.

16.Received $2000 cash from Speedy in transaction on April 10.

20.Received $1 800 cash for services completed for P.Donahue.

30.Paid assistant for the month $1 200

30.Paid $800 owed to Halo Ltd

30.Paid dividends to shareholder $500

Required :

a)Journalise the transactions ,including narrations.

b)Post to the ledger accounts using T accounts.

c)Prepare a trial balance on 30 April,2010 .

d)Prepare an income statement for April and a balance sheet.

1.The equipment depreciates $300 per month.

2.The revenue received in advance was for the 9 months commencing 1 April.

3.Interest of $600 is accrued on the bank loan.

4.Supplies on hand total $1000.

5.Insurance expires at the rate of $300 per month.

6.Salaries of $1000 are unpaid at 30 June.

Required:

a) Prepare the adjusting entries, assuming that adjusting entries are made quarterly.

b) Prepare the adjusted trial balance at 30 June.

c) Prepare an income statement for April and a balance sheet.

520 Depreciation Expense 530 Insurance Expense 220 Interest Payable 540 Supplies Expense 550 Interest Expense