Download 1 Accounting in English Dr. Mohammed Shanikat Q: P3

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Accounting in English
Dr. Mohammed Shanikat
Q: P3-5 pages 123-124
(a) Enter the November 1 balances in the ledger accounts:
Account: Cash
Date
Explanation
Nov.1
Balance
Nov. 8
Nov. 10
Nov. 12
Nov. 20
Nov. 22
Nov. 25
Nov. 29
Ref
J1
J1
J1
J1
J1
J1
J1
Account: Accounts Receivable
Date
Explanation Ref
Nov.1
Balance
10
J1
27
J1
Account: Supplies
Date
Explanation
Nov.1
Balance
17
Adj
1,200
1,400
550
Debit
700
Ref
Debit
J1
J2
1,500
Account: Store Equipment
Date
Explanation Ref
Nov.1
Balance
15
J1
Account: Accumulated Depreciation
Date
Explanation Ref
Nov.1
Balance
Adj
J2
Account: Accounts Payable
Date
Explanation
Nov.1
Balance
15
17
20
Debit
Debit
3,000
Debit
Ref
Debit
J1
J1
J1
2,500
Account No. 101
Credit
Balance
2,790
1,100
1,690
2,890
4,290
2,500
1,790
300
1,490
1,000
490
1,040
Account No. 112
Credit
Balance
2,510
1,200
1,310
2,010
Account No. 126
Credit
Balance
1,000
2,500
900
1600
Account No. 153
Credit
Balance
10,000
13,000
Account No. 154
Credit
Balance
500
120
620
Account No. 201
Credit
Balance
2,100
3,000
5,100
1,500
6,600
4,100
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Accounting in English
Dr. Mohammed Shanikat
Account: Unearned Service Revenue
Date
Explanation Ref
Nov.1
Balance
29
J1
Adj
J2
Account: Salaries Payable
Date
Explanation
Nov.1
Balance
8
Adj
Account: R. Alou, Capital
Date
Explanation
Nov.1
Balance
Account: Service Revenue
Date
Explanation
Nov. 12
27
Adj
Debit
300
Ref
Debit
J1
J2
500
Ref
Ref
J1
J1
J2
Debit
Debit
Account No. 209
Credit
Balance
400
550
950
650
Account No. 212
Credit
Balance
500
0
500
500
Account No.301
Credit
Balance
12,800
Account No. 407
Credit
Balance
1,400
1,400
700
2,100
300
2400
Account: Salaries Expense
Date
Explanation
Nov. 8
25
Adj
Ref
J1
J1
J2
Debit
600
1,000
500
Account No.726
Credit
Balance
600
1,600
2100
Account: Rent Expense
Date
Explanation
Nov. 22
Ref
J1
Debit
300
Account No. 729
Credit
Balance
300
Debit
900
Account No. 631
Credit
Balance
900
Debit
120
Account No. 615
Credit
Balance
120
Account: supplies Expense
Date
Explanation Ref
Adj
J2
Account: Depreciation Expense
Date
Explanation Ref
Adj
J2
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Accounting in English
Dr. Mohammed Shanikat
(B) Journalize the November transactions.
Date
Explanation
Nov. 8
Salaries expense
Salaries payable
Cash
Cash
Accounts receivable
Cash
Service Revenue
Store equipment
Accounts Payable
Supplies
Accounts Payable
Accounts Payable
Cash
Rent Expense
Cash
Salaries Expense
Cash
Accounts Receivable
Service Revenue
Cash
Unearned Service Revenue
Nov. 10
Nov. 12
Nov. 15
Nov. 17
Nov. 20
Nov. 22
Nov. 25
Nov. 27
Nov. 29
Post
Ref
726
212
101
101
112
101
407
153
201
126
201
201
101
729
101
726
101
112
407
101
209
Debit
600
500
1,100
1,200
1,200
1,400
1,400
3,000
3,000
1,500
1,500
2,500
2,500
300
300
1,000
1,000
700
700
550
(C) Post to the ledger accounts
All the entries have been posted (see the ledger accounts in (A).
(d) Prepare a trial balance at November 30.
Page 1
Credit
550
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Accounting in English
Dr. Mohammed Shanikat
Alou Equipment Repair
Trial Balance
At November 30
Account No
101
112
126
153
154
201
209
212
301
407
615
631
726
729
Account
Cash
Accounts Receivable
Supplies
Store equipment
Accumulated Depreciation
Accounts payable
Unearned service revenue
Salaries payable
R. Alou, Capital
Service Revenue
Depreciation expense
Supplies expense
Salaries expense
Rent expense
Debits
1,040
2,010
2,500
13,000
Credits
500
4,100
950
0
12,800
2,100
1,600
300
20,450
20,450
(E) Journalize and post adjusting entries.
Date
Explanation
Adj
Supplies expense
Supplies
Salaries expense
Salaries payable
Depreciation expense
Accumulated Depreciation
Unearned Service Revenue
Service revenue
Adj
Adj
Adj
Post
ref
613
126
631
212
615
154
209
407
Debit
Page 2
credit
900
900
500
500
120
120
300
300
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Accounting in English
Dr. Mohammed Shanikat
(f) Prepare an adjusted trial balance
Alou Equipment Repair
Adjusted Trial Balance
At November 30
Account No
101
112
126
153
154
201
209
212
301
407
615
631
726
729
Account
Cash
Accounts Receivable
Supplies
Store equipment
Accumulated Depreciation
Accounts payable
Unearned service revenue
Salaries payable
R. Alou, Capital
Service Revenue
Depreciation expense
Supplies expense
Salaries expense
Rent expense
Debits
1,040
2,010
1,600
13,000
Credits
620
4,100
650
500
12,800
2,400
120
900
2100
300
21,070
21,070
(g) Prepare income statement, and owner's equity statement for November and
balance sheet at November 30.
Alou Equipment Repair
Income statement
For the month ended on November 30
Service Revenues
Expenses:
Depreciation expense
Supplies expense
Salaries expense
Rent expense
Total expenses
Net income (loss)
2,400
120
900
2100
300
(3420)
(1,020)
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Accounting in English
Dr. Mohammed Shanikat
Alou Equipment Repair
Owner's equity statement
For the month ended on November 30
Alou, Capital at November 1
12,800
Less: net income (loss)
Less: drawings
Alou, Capital at November 30
(1,020)
0
11,780
Alou Equipment Repair
Balance sheet
At November 30
Assets
Cash
Accounts Receivable
Supplies
Store equipment
13,000
Less: Accumulated Depreciation (620)
Net
1,040
2,010
1,600
12,380
17,030
Total assets
Liabilities:
Accounts payable
Unearned service revenue
Salaries payable
Total Liabilities
Alou, Capital
Total liabilities & owner's equity
4,100
650
500
5,250
11,780
17,030
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Accounting in English
Dr. Mohammed Shanikat
(h)
(H)
Closing the books. ‫إغالق الدفاتر‬
Closing the books. ‫إغالق الدفاتر في نهاية السنة المالية‬
At the end of the accounting period, the company makes the accounts ready
for the next period.
Usually the accounts can be:
1. Temporary accounts ‫ حسابات مؤقتة‬these accounts are closed
All revenues accounts close in the income summary
All expenses accounts close in the income summery
Owner's drawing account closes in the owner's capital accounts
The result of the income summary (net income) closes in the
owner's capital
If the result of the income summary is profit the closing entry is:
Income summary
Capital
XX
XX
Closing the drawing is:
Capital
Drawing
XX
XX
If the result is loss, the closing entry is the opposite of the above
entry
2. Permanent accounts ‫ حسابات دائمة‬these accounts are not closed
All assets accounts
All liabilities accounts
Owner's capital account
Closing entries are only at the end of the annual accounting period.
‫يتم إعداد قيود اإلقفال فقط في نهاية السنة المالية‬
Now: Journalize the closing entries
Date
2006
Dec 31
closing
closing
closing
Explanation
Service revenue
Income summary
Income summary
Depreciation expense
Supplies expenses
Rent expenses
Salaries expense
Alou, capital
Income summary
Post
ref
Debit
credit
2400
2400
3420
120
900
300
2100
1,020
1,020
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Accounting in English
Dr. Mohammed Shanikat
The closing entries should post to their accounts
Preparing a Post-Closing Trial Balance
‫إعداد ميزان المراجعة ما بعد قيود اإلغالق‬
Purpose is to prove the equality of the permanent account balances after
journalizing and posting of closing entries.
‫الهدف من ذلك هو إثبات توازن الحسابات الدائمة بعد تسجيل وترحيل قيود اإلقفال‬
Alou Equipment Repair
Post-closing Trial Balance
At December 31, 2006
Account No
101
112
126
153
154
201
209
212
301
Account
Cash
Accounts Receivable
Supplies
Store equipment
Accumulated Depreciation
Accounts payable
Unearned service revenue
Salaries payable
Alou, Capital
Debits
1,040
2,010
1,600
13,000
17,650
Credits
620
4,100
650
500
11,780
17,650