RVU GEDA CAMPUS Fundamentals of

Accounting I Individual assignment

PROJECT ONE

Illustration
To illustrate the complete accounting cycle, we will consider the following list of selected
transactions. The transactions were completed by BEKA SUPERMARKET in the month of
January 2015.

January 1. w/ro TSAHAY took Birr 600,000 from her personal savings and deposited it in the
name of BEKA SUPERMARKET.

January 2. BEKA SUPERMARKET purchased cash register machines for Birr 100,000 on
cash.

January 4. BEKA SUPERMARKET received br 10,000.00 for services given to BETI

SUPERMARKET.

January 4. Received an invoice for CASH REGISTER MATCHINE expenses Birr 100.

January 11. Paid Birr 6000 for Africa Insurance Company to buy an insurance premium for its
Machines.

January 16 BEKA SUPERMARKET issued a check for Birr 18,000 to the workers as a salary
for the month.

January 20. BEKA SUPERMARKET Billed TIGIST Supermarket for goods transported from

ADDIS TO DEMBIDOLLO Birr 8,650

January 21. w/ro TSAHAY wrote a check for birr 800 to have one of the MACHINES repaired

January 21. BEKA SUPERMARKET purchased supplies of Birr 1,740 on account

January 22. Office equipment of Birr 20,600 is bought on account.

January 23. Recorded services billed to customers on account birr 15000.

January 25. Received cash from customers on account Birr 25,000.

Fundamentals of Accounting I Assignment Page 1

January 27. The owner withdraw Birr 2500 in cash for his personal use.

January 30. Paid telephone expense of Birr 400 and electric expenses of Birr 325 for the month.

January 30. Paid other miscellaneous expenses Birr 100.

January 31. Paid Birr 8,000as a rent for a building used for office space.

Additional information:

On jan 31 balance of supplies and prepaid insurance left on hand 740 and 2000
respectively.

INSTRUCTION

1. Pass necessary journal entry

2. Post the transaction to ledger
3. Prepare Trial balance as of jan.31 2015

Project TWO
1. The following unadjusted trial balance was prepared at the end of the fiscal year for XYZ
Grocery

XYZ Grocery

Trial Balance

As of December 31, 2021

Account Title Debit Credit

Cash........................................................…………………. 87,400

Notes Receivable.......................................……………….. 30,200

Accounts Receivable..................................………………. 74,150

Merchandise Inventory....................................................... 60,000

Office Supplies.................................................................... 2,200

Prepaid Insurance………………………………………… 4,400

Store Equipment.................................................................. 38,100

Accumulated Depreciation-Store Equipment...................... 2,600

Fundamentals of Accounting I Assignment Page 2

 Office Equipment.......................................... ……………. 26,400

Accumulated Depreciation-Office Equipment.................... 2,400

Accounts Payable................................................................ 12,000

Sales Tax Payable………………………………………… 2,700

Unearned Rent..................................................................... 24,000

Long-term Notes Payable.................................................... 25,000

Kebede, Capital................................................................... 125,000

Kebede, Drawing................................................................. 14,700

Sales..................................................................................... 700,000

Sales Returns & Allowances............................................... 8,000

Sales Discounts…………………………………………… 7,000

Purchases……..…………………………………………... 420,000

Purchase Returns & Allowances…………………………. 9,100

Purchase Discounts………………………………………. 4,900

Transportation-In…………………………………………. 15,000

Sales Salaries Expense…………………………………… 25,400

Advertising Expense……………………………………… 14,300

Miscellaneous Selling Expense…………………………... 8,200

Office Salaries Expense………………………………….. 44,000

Rent Expense…………………………………………….. 18,000

Miscellaneous Administrative……………………………. 7,700

Interest Expense………………………………………….. 2,550 .

907,700 907,700

Fundamentals of Accounting I Assignment Page 3

Additional Information:

a) Merchandise Inventory as of December 31, 2021................................ $70,000

b) Interest accrued on long-term notes payable on December 31, 2021... 320

c) Office Supplies as of December 31, 2021............................................ 1,300

d) Insurance expired during 2021.............................................................. 1,200

e) Depreciation during 2021 on:-

Store equipment.............................................................................3,200

Office equipment………………………………………………... 2,580

f) Salaries accrued on December 31, 2021

Sales Salaries……………………………………………………. 900

Office Salaries…………………………………………………… 1,400

g) Rent Income Earned during 2021…………………………………….. 3,000

Required:

i) Journalize the necessary adjusting entries

ii) Prepare the Adjusted Trial Balance
iii) Prepare Financial Statement ( Statement of Financial Position and Profit & Loss Statement)

PROJECT Three

I. Distinguish Accounting and Book keeping

II. Differentiate Merchandising business from service giving business
III. Discuss ACCOUNTING CYCLE
IV. Explain the following terms

Asset, Liabilities, Capital, Revenue and Expenses, chart of Account, Vouchers, petty
cash, bank statement and bank reconciliation, Adjusting entry, closing entry,
Receivables (A/R,N/R, Trade Receivables, Non trade receivables, Discounting N/R,
Dishonored N/R , Uncollectible Receivables)

Fundamentals of Accounting I Assignment Page 4