University of Modern Sciences

College of Business

Accounting

ACCT 102

Fall 2015-2016

Assignment 2

Submitted by
Student Name: Sultan Almansoori
Student ID: S0000001169
Section: 2

General Journal

Transaction Account Title & Explanation Ref. Debit Credit

1 Cash 380,000

Khalifa , Capital 380,000

2 Equipment 93,750

Cash
37,500
Notes Payable 56,250

3 Rent Expense 3,050

Cash 3,050

4 Advertising Expense 740

Utilities Payable 740

5 Cash 23,650

 Service Revenue 23,650

6 Utilities Expense 5,625

Cash 5,625

7 Salaries Expense 500

Cash 500

8 Cash 112,500

Khalifa , Capital 112,500

9 Khalifa , Drawing 2,625

Cash 2,625

10 Supplies 52,000

Accounts Payable 52,000

General Ledger

Cash
Transaction ITEM POST. DEBIT CREDIT BALANCE
REF. DEBIT CREDIT
1 380,000 380,000
2 37,500 342,500
3 3,050 339,450
5 23,600 363,050
6 5,625 357,425
7 500 356,925
8 112,500 469,425
9 2,625 466,800

Equipment

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
2 93,750 93,750

Khalifa, Capital

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
1 380,000 380,000
8 112,500 492,000

Khalifa, Drawing

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
9 2,625 2,625

Supplies

Transaction ITEM POST. DEBIT CREDIT BALANCE

 REF. DEBIT CREDIT
10 52,000 52,000

Service Revenue

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
5 23,650 23,650

Rent Expense

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
3 3,050 3,050

Advertising Expense

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
4 740 740

Utilities Expense

Transaction ITEM POST. DEBIT CREDIT BALANCE

 REF. DEBIT CREDIT
6 5,625 5,625

Salaries Expense

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
7 500 500

Notes Payable

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
2 56,250 56,250

Utilities Payable

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
4 740 740

Accounts Payable

Transaction ITEM POST. DEBIT CREDIT BALANCE

REF. DEBIT CREDIT
10 52,000 52,000

Trial balance
 Microsoft Company

Trial balance

For The Month Ended March 31, 2016

ACCOUNT NAME DEBITS CREDITS
Cash 466,800
Equipment 93,750
Supplies 52,000
Accounts Payable 52,000
Notes Payable 56,250
Utilities Payable 740
Service Revenue 23,650
Khalifa, Capital 492,000
Khalifa, Drawing 2,625
Rent Expense 3,050
Advertising Expense 740
Utilities Expense 5,625
Salaries Expense 500
Total 624,640 624,640

Financial statements
 Microsoft Company

Income Statement

For The Month Ended March 31, 2016

Revenue

Services Revenue 23,650

Total Revenue 23,650

Expense

Rent Expense 3,050

Advertising Expense 740

Utility Expense 5,625

Salary Expense 500

Total Expense 9,915

Net Income 13,735

 Microsoft Company

Owner’s Equity Statement

For The Month Ended March 31, 2016

Khalifa, capital, March 1 $0

Add: Investment 380,000

Add: Investment 112,500

Net Income 13,735

506,235

Less: With drawing 2,625

Khalifa, capital, March 31 503,610

 Microsoft Company

Balance Sheet Statement

For The Month Ended March 31, 2016

Assets

Cash 466,850

Equipment 93,750

Supplier 52,000

Total Assets 612,600

Liabilities and Owner’s Equity

Liabilities

Account payable 108,990

Owner’s Equity

Khalifa, capital 503,610

Total Liabilities and Owner’s Equity 612,600

 Microsoft Company
Statement of Cash Flows
For the Year Ended March 31, 2016

Cash flow from operating activities:

Cash receipt from revenues $ 23,650
Cash payments for expenses (9,915)
Net cash provided by operating activities 13,735
Cash flow from investing activities:
Purchase of equipment (93,750)
Cash flow from financing activities:
Investment by the owner $ 492,500
Drawing by the owner (2,625) 489,875
Net increase in cash 466,850
Cash at the beginning of the period 0
Cash at the end of the period $466,850