ACC2310_Assignment 1_Samantha_Renaud

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Algonquin College *

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2310

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Accounting

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Jan 9, 2024

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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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