Financial Accounting

& Reporting

Dr. Mina Bishara

Mid Term
Case Study

By:
Ahmad Zakaria Hassan Kotop
 SAS Jornal Enteries 2019

SN Transaction Account DebIt Credid

1 SAS invested 100,000 in cash in the business. Cash 100,000

SAS, Capital 100,000
2 Purchased 3,000 of office supplies in cash. Office Supply 3,000
Cash 3,000
3 Equipment (Asset) 20,000
Purchased equipment for 20,000, paying 15,000 in cash and the rest is on account. Cash 15,000
Acount Payable 5,000
4 A customer purchased goods on account for 10,000 Account Recivable 10,000
Revniew 10,000
5 Withdrawals for personal expenses are 5,000 Withdrawals 5,000
cash 5,000
6 Paid 2,000 in cash for the current month's rent. Rent Expenses 2,000
Cash 2,000
7 Paid 5,000 cash for insurance on the factory for 2 years. Prepaied Insurance 5,000
Cash 5,000
8 Received a bill for 1,000 for advertising for the current year. Advertising Bill Expenses 1,000
Advertising Bill Payable 1,000
9 Paid $3,200 cash for office salaries and wages. Salary Expenses 3,200
Cash 3,200
10 SAS withdrew $2,500 from the business for living expenses. Withdrawals 2,500
cash 2,500
11 Cash 3,000
Received $3,000 from a client in payment on account for sales billed in transaction 4 Account Recivable 3,000
12 Took a loan from XY Bank worth 20,000 Cash 20,000
Loan 20,000
13 Purchased a truck for $15,000 cash Truck (Asset) 15,000
Cash 15,000
14 Sold goods for 7,000 cash Cash 7,000
Revniew 7,000
15 Received 8,000 in advance from a client for work to be done Cash 8,000
Unerned Revnew 8,000
 T - Account
Cash Account Account Recivables
DebIt Credid DebIt Credid
100,000.00 3,000.00 10,000.00 3,000.00
3,000.00 15,000.00
20,000.00 5,000.00
7,000.00 2,000.00
8,000.00 5,000.00
3,200.00
2,500.00
15,000.00

138,000.00 50,700.00 10,000.00 3,000.00

87,300.00 7,000.00
 Trial Balance

Total Dr Total Cr
Cash 87,300 SAS, Capital 100,000
Office Supply 3,000 Acount Payable 6,000
Equipment (Asset) 20,000 Revniew 17,000
Account Recivable 7,000 Loan 20,000
Withdrawals 7,500 Unerned Revnew 8,000
Rent Expenses 2,000
Prepaied Insurance 5,000
Advertising Bill Expenses 1,000
Salary Expenses 3,200
Truck (Asset) 15,000
151,000 151,000
-
 Adjustments Enteries

SN Adjustments Account DebIt Credid

The Truck depreciates using units of activity method. It has a useful life of 5 Truck Cost= 15,000 $
years, a salvage value of $3000 and estimated 400,000 km to travel. By the Truck Depretiation Expense 2,100 Life : 5 Years (Cost - SV)/Units = (15,000-3000)/400,000) = 0.03
1 end of the year the truck traveled 70,000 km. Salvage Value = 3,000 $
Estimated Units of Adjustment =
Truck Accumelative Depretiation 2,100 400,000 Km Dep. Expences for 1st Year = 0.03/ 70,000 = 2,100
1st year Traveled : 70,000 Km
2 Office supplies on hand are 1,200. Office Supply Expenses 1,800
Office Supply` 1,800
3 Interest on the loan is 18% annually and the loan was received November 1st Loan Intrest Expenses 600 20,000 $ Loan 2 Months 3 3% 600
Intrest Payable 600
4 Prepaid insurance was paid on April 1st Insurance Expenses 1,875 5,000 $ for 2 years 9 Months 208.3333 1,875
Prepaied Insurance 1,875
5 Unearned revenues that should be realized totaled 2,500 Unearned revenues 5,500
revenues 5,500
6 Maintenance expenses that the accountant forgot to record totaled 3,000 Maintenance Expenses 3,000
Maintenance Payables 3,000
7 Sales revenues that aren't recorded totaled 1,500. Cash 1,500
Revenues 1,500
 Adjusted Trial Balance

Total Dr Total Cr
Cash 88,800 SAS, Capital 100,000
Office Supply 1,200 Acount Payable 6,000
Equipment (Asset) 20,000.00 Revniew 24,000
Account Recivable 7,000.00 Loan 20,000
Withdrawals 7,500.00 Unerned Revnew 2,500
Rent Expenses 2,000.00 Truck Accumelative Depretiation 2,100
Prepaied Insurance 3,125.00 Intrest Payable 600
Advertising Bill Expenses 1,000.00 Maintenance Payables 3,000
Salary Expenses 3,200.00
Truck (Asset) 15,000.00
Truck Depretiation Expense 2,100
Loan Intrest Expenses 600 -
Office Supply Expenses 1,800
Maintenance Expenses 3,000
Insurance Expenses 1,875

158,200 158,200
 Income Statement

Expenses Revniew
Rent Expenses 2,000 Revniew 24,000
Advertising Bill Expenses 1,000
Salary Expenses 3,200
Truck Depretiation Expense 2,100
Loan Intrest Expenses 600
Office Supply Expenses 1,800
Maintenance Expenses 3,000
Insurance Expenses 1,875

15,575 24,000

8,425
 Losing Enteries

a) Revenew 24,000.00
Income Summary 24,000.00

b) Income Summary 15,575.00

Expenses 15,575.00

c) Income Summary 8,425.00

SAS, Capital 8,425.00

d) SAS, Capital 7,500.00

Withdrow 7,500.00

Operation Profit 925.00

 Post-Closing Enteies

Total Dr Total Cr
Cash 88,800.00 SAS, Capital 100,925.00
Office Supply 1,200.00 Acount Payable 6,000.00
Equipment (Asset) 20,000.00 Loan 20,000.00
Account Recivable 7,000.00 Unerned Revnew 2,500.00
Prepaied Insurance 3,125.00 Truck Accumelative Depretiation 2,100.00
Truck (Asset) 15,000.00 Intrest Payable 600
Maintenance Payables 3,000.00

135,125.00 135,125.00
 Balance Sheet
Assets Liabilities + O Equity

Current Assets Current liabilities

Cash 88,800.00 Acount Payable 6,000.00

A/R 7,000.00 Unerned Revnew 2,500.00

Office Supply 1,200.00 Intrest Payable 600

Prepaied Innsurance 3,125.00 Maintenance Payables 3,000.00

Long term Assets Long term Liabilities

Truck 15,000.00 Loan 20,000.00

Equipment 20,000.00 SAS, Capital 100,925.00

Acc. Dep. -2100

Total Liabilities

133,025.00 133,025.00