ACC2310_Assignment 1_Samantha_Renaud
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ACC2310 PRACTICAL APPLICATI0N:
ASSIGNMENT #1
INSTRUCTIONS
This assignment should be completed using this word document.
Assignments need to be
submitted on or before the due date specified by the instructor. Consult the course calendar for
assignment due dates.Your assignment grade and the marked file
With Feedback
will be
available for your review through the
Gradebook once it has been marked.
Scroll past the
grade to the individual questions to see comments and corrections
This assignment is worth
10%
of your final grade and is out of
73
marks.
Grading Rubric
Criteria
Exceeds
Requirements
Meets
Requirements
Meets
Requirements
but Needs
Work
Does Not Meet
Requirements
Grade
Financial
Statements
Accurately
Pepares 100%
of the Income
Statement,
Statement of
Equity and
Balance Sheet
(29)
Prepares a
minimum of the
Income
Statement,
Statement of
Equity and
Balance Sheet
(21-28)
Prepares a
minimum of
50-69% of the
Income
Statement,
Statement of
Equity and
Balance Sheet
(16-20)
Prepares less
than 50 of the
Income
Statement,
Statement of
Equity and
Balance Sheet
(0-15)
Journal
Entries,
Posting to T
accounts and
Preparing a
Trial Balance
Accurately
prepares 100%
of the Journal
Entries Posts
correctly to all T
accounts and
accurately
prepared the
Trial Balance
(44)
Accurately
prepares a
minimum of
70% of the
Journal Entries
Posts correctly
to all T accounts
and accurately
prepared the
Trial Balance
(31-43)
Accurately
prepares a
50- 69 of the
Journal
Entries Posts
correctly to all
T accounts
and
accurately
prepared the
Trial Balance
(21-30)
Accurately
prepares less
than 50% of the
Journal Entries
Posts correctly
to all T accounts
and accurately
prepared the
Trial Balance
(0-22)
Comments Comments
Use complete account names, if it is an
expense, payable, prepaid – you must use these in the account
name in the entries.
Marks will be deducted if you do
not
Total
/73
Weighted Average
/10
Question 1:
29 marks
The following is a trial balance from Mikes Mighty Mechanics Shop at December 31, 2011
Mikes Mighty Mechanics Shop
Trial Balance
For the Year Ended December 31, 2011
Account
Dr.
Cr.
Cash
25
Accounts Rec.
12
Inventory
20
Prepaid Rent
3
Furniture
20
Accumulated
Amortization-
Furniture
4
Accounts Payable
15
Salary Payable
5
Unearned Revenue
4
Mikes, Capital
50
Mikes,
Withdrawals
3
Sales Revenue
107
Sales Discounts
4
Sales Returns and Allowances
2
Wages Expense
54
Salary Expense
26
Rent Expense
3
Utilities Expense
11
Amortization Expense-
Furniture
2
185
185
Required:
Prepare an Income Statement, Statement of Equity and a Balance Sheet, all in good form.
A)
Prepare an Income Statement in good form as demonstrated in the lesson content and in the
text:
11 marks
Mike’s Mighty Mechanics Shop
Income Statement
Month Ended December 31, 2011
Revenues
Sales Revenues
$107
Less:
Sales Discount
$4
Sales Return and Allowances
$2
Total Revenues
$101
Operating Cost
Salary & Wage Expense
$80
Rent Expense
$3
Utilities Expense
$11
Amortization Expense – Furniture
$2
Total Operating Cost
$96
Net Income
$5
B)
Prepare a Statement of Equity in good form as demonstrated in the lesson content and in the
text:
5 marks
Mike’s Mighty Mechanics Shop
Statement of Equity
December 31, 2011
Mike’s Capital, December 1
$50
Add:
Investment by Owner
$0
Net Income
$5
Total
$55
Less:
Withdrawal by Owner
$3
Mike’s Capital December 31, 2011
$52
C)
Prepare a Balance Sheet in good form as demonstrated in the lesson content and in the text:
13 marks
Mike’s Mighty Mechanics Shop
Balance Sheet
December 31, 2011
Assets
Liabilities
Cash
$25
Account Payable
$15
Account Rec.
$12
Salary Payable
$5
Inventory
$20
Unearned Revenue
$4
Prepaid Rent
$3
Total Liabilities
$24
Furniture
$20
Less:
Owner’s Equity
Accumulated Amortization- Furniture
$4
Mike’s Capital
$52
Total Assets
$76
Total Liabilities and Owner’s Equity
$76
Questions 2:
44 marks
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Question 2
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d. Accrued receptionist salary on May 31 is $325.
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