Exercises

1. The accounts : A, B, C, have the following transactions:

Account

Debit

Credit

550, 308, 700

150, 8 , 30

400, 50, 70

800, 200, 350

550, 310, 2

430, 85, 347

Present the transactions:

-using T accounts for A, B, C
- calculate turnovers
- Close the account
2. Consider the assets, liabilities and shareholdersequity related to a clothing manufacturer.
Match examples of the various components of the Balance Sheet with their correct
classifications.

3. The following transactions are presented:

- The owner of Company B bought 50.000 worth of manufacturing equipment. The first
installment of 2500 was paid for in cash and 47500 was done on 120-day terms.
- Company B also purchased one years worth of insurance for 30000 , paying for it in
advance with cash.
How does these affect the Balance Sheet?
4. For the following transactions, show how these affect the Balance Sheet:

i. Purchase land on credit (> one year)

vi. Purchase a Treasury Bill for cash
ii. Disburse loan to client
vii. Client withdraws savings
iii. Purchase motorcycles for staff - pay half cash; half short-term credit
viii. Receive an unrestricted donation
iv. Purchase office furniture on short-term credit
ix. A Current loan becomes past due
v. Take loan from bank at commercial rate of interest (> one year)
x. Receive a restricted donation for operations (3 years)
Write in the table given.

5. Using the following trial balance, complete the balance sheet.

Adjusted Trial Balance

Acct number
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036

Acct name
Debit Balance
Petty Cash
500
Checking
44.000
Savings
100.000
Accounts Receivable
80.000
Allowance for Doubtful Accounts
Inventory
150.000
Prepaid Expenses
10.000
Land
370.000
Buildings
330.000
Office Equipment
44.000
Patents
170.000
Accounts Payable
Accrued Payroll
Accrued Property Taxes
Short-term Bank Loan
Mortgage
10 year loan
Owner invested capital
Retained Earnings
TOTAL
1.298.500
Balance sheet
Assets

Current Assets
Cash
Accounts receivable
(less doubtful accounts)
Inventory
Short term investment
Prepaid expenses
Total current Assets
Non-current Assets
Long-term investments
Land & Buildings
(less accumulated depreciation)
Copyrights and Patents
Plant and equipment
(less accumulated depreciation)
Furniture and fixtures
(less accumulated depreciation)
Total non-current Assets
TOTAL ASSETS

Credit Balance

51.000

70.000
50.000
55.000
40.000
251.000
285.000
250.000
246.500
1.298.500

Liabilities
Current Liabilities
Accounts Payable
Short-term notes
Current portion of long-term notes
Interest Payable
Taxes Payable
Accrued Payroll
Total Current Liabilities
Long-term Liabilities
Mortgage
Other long-term liabilities
Total long-term liabilities
StockholdersEquity
ShareholdersInvestment
Retained Earnings
Total StockholdersEquity
TOTAL LIABILITIES & EQUITY