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Surname 1

Name:

Lecturer:

Course name:

Course code:

Date

Question One

The advance research in UAE describes high potential investment service delivery industry. High

population of visitors accentuates the privileges of investing in a service delivery industry such a

restaurant. Ideal review the industry proofs high returns on moderate base of capital invested.

Question Two

1) 100,000 Investment
2) 5,000 for renting a shop for the month paid in cash
3) 6,000 for insurance for one year paid in advance
4) 9,000 for assets paid in cash
5) 7,000 assets purchase by writing a note payable to the creditor
6) 8000 for assets both partial on cash and in credit
7) Cash Sales for the month 30,000
8) Credit Sales for the month 20,000
9) 2000 cash paid in consideration to account payable in note (6)
10) 10,000 for prepaid services paid in advance to ne rendered in the subsequent month
11) 20,000 payment from credit sales in note (8)
12) 2,000 credit for advertisement services
13) 2,000 payment for credit advertisement services
14) 6,000 cash drawings for personal use
Trial balance
Surname 2

Trial Balance
for the month of Jan 2014
Particulars Debit Credit
Capital 100,000
Rent 5,000
Assets 24,000
Cash 88,000
Bank 42,000
Notes payable 5,000
Accounts Payable 6,000
Prepaid service 10,000
Insurance 6,000
Drawings 6,000
Sales 50,000
171,000 171,000

Chart of Accounts

Balance sheet accounts Assets


Cash 88,000
Bank 42,000
Prepaid service 10,000
Firm Assets 24,000
164,000
Liabilities
Accounts Payable 6,000
Notes Payable 5,000
11,000
Owner's Equity 100,000
Surname 3

Drawings 6,000
Operating Gains 47,000
164,000

Income statement accounts Operating Revenue


Sales 50,000
Prepaid sales 10,000
Operating Expenses
Rent 5,000
Insurance 6,000
Advertisement 2,000

Operating Gains 47,000

Journal entries For the Month of January 2014


Debit (Dr) Credit (Cr)
2-Jan Cash $70,000
2-Jan Bank $30,000
2-Jan Capital $100,000

3-Jan Rent $5,000


3-Jan Cash $5,000

5-Jan Insurance $6,000


5-Jan Bank $6,000

7-Jan Assets $9,000


7-Jan Sundry Creditor $9,000
Surname 4

10-Jan Assets $7,000


10-Jan Notes Payable $7,000

12-Jan Assets $8,000


12-Jan Accounts Payable 6000
12-Jan Cash $2,000

15-Jan Cash $30,000


15-Jan Accounts Receivable $20,000
15-Jan Sales $50,000

18-Jan Cash $10,000


18-Jan Prepaid Service $10,000

21-Jan Bank $20,000


21-Jan Account Receivable $20,000

23-Jan Advertisement $2,000


23-Jan Accounts Payable $2,000

26-Dec Accounts Payable $2,000


26-Dec Advertisement $2,000

30-Jan Drawings $6,000


30-Jan Cash $6,000
$225,000 $225,000
Question Three

1)

Welhem Company
Statement of comprehensive income
As at 30 June 2013
Revenue
Fees Revenue 188,400
Less cost of goods sold
Supplies 1,350
Gross profit 187,050
Surname 5

Less Operating Expenses


Salaries Expenses 101,200
Advertising Expenses 58,200
Utilities Expenses 19,000
Repairs Expenses 15,550
Total operating expenses 193,950
Net operating Loss -6,900

2)

Welhem Company
Statement of changes in Equity
As at 30 June 2013
Capital Contributed 147500
Add Profit /Less loss for the year
Loss for the period (6,900)
Less Drawings (10,000)
Net Equity Balance as at 30 June 2013 130600

3)

Welhem Company
Statement of Financial Position
As at 30 June 2013
Fixed Assets
Land 50,000
Building 85,800
Equipment 54,800
Total Fixed Assets 190,600
Current Asets
Prepaid Insurance 1,800
Surname 6

Accounts Receivable 7,500


Cash 2,200
Total Current Assets 11,500
Total Assets 202,100

Current Liabilities
Notes Payable 65,000
Accounts Payable 3,500
Unearned Revenue 3,000
Total Current Liabilities 71,500

Non Current Liabilities


Capital 147,500
Drawings (10,000)
Net realized Loss (6,900)
Total Liabilities 202,100