1.

a. Chart of accounts :

No. Account Account Type To increase

100 Cash Asset Debit
110 Account Receivable Asset Debit
130 Supplies Asset Debit
150 Equipment Asset Debit
151 Accumulated depreciation -Equipment Liabilities Credit
200 Account Payable Liabilities Credit
210 Salaries Payable Liabilities Credit
213 Service Revenue received in Advance Owners' equity Credit
300 Share capital Owners' equity Credit
310 Retained Earnings Owners' equity Credit
400 Service revenue Revenues Credit
500 Salaries expense Expenses Debit
510 Rent expense Expenses Debit
520 Depreciation expense - equipment Expenses Debit
530 Supplies expenses Expenses Debit

b. Enter the 1st of June balances in the ledger accounts (use T-accounts).

Cash 100

June 1 , 2017 Open balance: 3,348

Account Receivable 110

June 1 , 2017 Open balance : 3,012

Supplies 130

June 1 , 2017 Open balance: 1,200

 Equipment 150

June 1 , 2017 Open balance : 12,000

Accumulated depreciation 151

June 1 , 2017 Open balance : 600

Account Payable 200

June 1 , 2017 Open balance : 2,520

Service revenue received in advance 213

June 1 , 2017 Open balance : 480

Salaries payable 210

June 1 , 2017 Open balance : 600

Share Capital 300

June 1 , 2017 Open balance : 12,000

Retained earnings 310

June 1 , 2017 Open balance : 3,360

c. Journalise the June transactions.

GENERAL JOURNAL
Date Account name Ref Dr Cr
2017 Salaries expense ( for June ) 500 720

June 8 Cash 100 720

8 Salaries Payable (the balance is for May ) 210 600

Cash 100 600

10 Cash (Received from customers on account) 100 1,440

Account receivable 110 1,440

12 Cash (Received cash for services ) 100 1,680

Services revenue 400 1,680

15 Equipment (Purchased equipment on account) 150 3,600

Account Payable 200 3,600

17 Supplies (Purchased supplies on account) 130 1,800

Account Payable 200 1,800

20 Account Payable 200 3,000

Cash (Paid creditors on account) 100 3,000

22 Rent expense 510 360

Cash 100 360

25 Salaries expense 500 1,200

Cash 100 1,200

27 Account Receivable (Performed service on account) 110 1,080

Service Revenue 213 1,080

29 Cash ( Received from customers for future service. ) 100 660

 Service Revenue received in Advance 213 660
30 Supplies expense 130 1,080

Supplies 200 1,080

30 Salaries expense (Accrued salaries payable ) 500 600

Salaries payable 210 600

30 Dep'n expense - equipment (Depreciation for the month) 520 144

Accumulated depreciation expense - equipment 151 144

30 Service Revenue received in Advance 213 360

Service revenue 400 360

d. The ledger accounts for part c above. ( 2017 )

Cash 100

June 1, Opening balance: 3,348 June 8, Salaries expense : 720

10, Account receivable : 1,440 8, Salaries payable : 600

12, Service revenue : 1,680 20, Account payable : 3,000

29, Service Revenue received in 22, Rent expense : 360

Advance : 660
25, Salaries expense : 1,200

30, Closing balance : 1,248

7,128
7,128
July 1, Opening balance: 1,248

Salaries expense 500

June 8, Cash: 720 June 30, Closing balance : 2,520

25, Cash: 1,200

30, Salaries payable : 600

2,520 2,520

July 1, Opening balance: 2,520

Salaries payable 210

June 8, Cash: 600 June 1, Opening balance : 600

30, Closing balance : 600 30, Salaries expense: 600

1200 1,200

July 1, Opening balance: 600

Account Receivable 110

June 1, Opening balance: 3,012 June 10, Cash : 1,440

27, Service Revenue : 1,080 30, Closing balance: 2652

4,092 4,092

July 1, Opening balance: 2,652

Supplies 130
June 1, Opening balance: 1,200 June 30, Supplies expense: 1,080

17, Account Payable : 1,800 30, Closing balance: 1,920

3,000 3,000

July 1, Opening balance: 1,920

Equipment 150

June 1, Opening balance: 12,000 June 30, Closing balance: 15,600

15, Account Payable : 3,600

15,600 15,600

July 1, Opening balance: 15,600

Accumulated depreciation expense - equipment 151

June 30, Closing balance : 744 June 1, Opening balance : 600

30, Dep'n expense - equipment: 144

744 744

July 1, Opening balance: 744

Depreciation expense - equipment 520

June 1, Accumulated depreciation June 30, Closing balance: 144
expense - equipment : 144

144 144

July 1, Opening balance: 144

Account Payable 200

June 20, Cash : 3,000 June 1, Opening balance : 2,520

15, Equipment: 3,600

30, Closing balance: 4,920 17, Supplies : 1,800

7,920 7,920

July 1, Opening balance: 4,920

Service revenue 400

June 30, Closing balance: 3,120 June 12, cash: 1,680

27, Account receivable: 1,080

30, Service Revenue received in

Advance : 360

3,120
3,120
July 1, Opening balance: 3,120

Service Revenue received in Advance 213

June 30, Service revenue: 360 June 1, Opening balance : 480

30, Closing balance: 780 29, Cash : 660

1,140 1,140

July 1, Opening balance: 780

Rent Expense 510

June 22, Cash: 360 June 30, Closing balance: 360

360 360

July 1, Opening balance: 360

Supplies Expense 530

June 22, Supplies: 1,080 June 30, Closing balance: 1,080

1,080 1,080

July 1, Opening balance: 1,080

e, Trial balance
Ref Account names DR CR
100 Cash 1,248
110 Account Receivable 2,652
130 Supplies 3,000
150 Equipment 15,600
151 Accumulated depreciation expense 600
200 Account Payable 4,920
213 Service revenue received in advance 1,140
400 Service revenue 2,760
300 Share Capital 12,000
310 Retained earnings 3,360
500 Salaries expense 1,920
510 Rent expense 360
24,780 24,780

Adjusted trial balance

Ref Account names DR CR

100 Cash 1,248
110 Account Receivable 2,652
130 Supplies 1,920
150 Equipment 15,600
Accumulated depreciation expense -
151 744
equipment
200 Account Payable 4,920
210 Salaries Payable 600
213 Service revenue received in advance 780
400 Service revenue 3,120
300 Share Capital 12,000
310 Retained earnings 3,360
500 Salaries expense 2,520
510 Rent expense 360
520 Depreciation expense - equipment 144
530 Supplies expense 1,080
25,524 25,524

f, Prepare an Income Statement, calculation of retained earnings for June and a

classified Statement of financial position as at 30 June 2017.

$ $
Revenue:

Service revenue 3,120

Expenses:
Salaries expense 2,520
Rent Expense 360
Depreciation expense 144
Supplies Expense 1,080
Total expense 4,104
Loss (984)

Retained earnings for the month ended 31 June 2017

 $
Retained earnings 1 June 3,360
Less: Loss (984)
Retained earnings 30 June 2,376

Classified Statement of financial position as at 30 June 2017.

$ $ $

Current assets
Cash 1,248

Account receivable 2,652

Total current assets 3,900

Non-current asset
Supplies 1,920
Equipment 15,600
Less Accumulated depreciation (744)
Total non-current asset 16,776
Total assets 20,676

LIABILITIES
Accounts payable 4,920
Salaries payable 600
Service revenue received in 780
advance
Total liabilities 6,300
Net asset 14,376

Equity
Share capital 12,000
Retained earnings 2,376
Total equity 14,376

g, Journalise the post-closing entries required to finalise the end of financial year.

Date Account name

Ref Dr ( $ ) Cr ( $ )
( narration )
2017
June 30 Profit or loss summary 330 3,120
Service revenue 400 3,120
( To close revenue account )

Salaries expense 500 2,520

30
Rent Expense 510 360
Depreciation expense 520 144
Supplies Expense 530 1,080
Profit or Loss Summary 330 4,104
( To close revenue account )
 Retained earning
310 984
30
Profit or Loss Summary 330 984
( To close net loss to retained earnings )