ACC201
Financial Accounting
Practice for Assignment I
Spring 2022
You are the trusted accountant of Nguyen & Tran Co., a business consulting firm. Their accounting cycle
is every month. The fixed assets have equal depreciation across time and the expected time of usage is 2
years. The company uses a periodic system to manage their supplies, for which they count their supply at
the end of each accounting period. During April 2021, the company has the following transactions:
(1) April 1st, the company paid six months’ office rent of $4,500 in advance on a rental contract starting
from April 2021.
(2) April 2nd, the company purchased $1,000 of additional office supplies on credit from XYZ Inc.
(3) April 3rd, the company paid salary that incurred in March for employees, $2,000.
(4) April 4th, stockholders invested $50,000 into the business in exchange for 50,000 shares of $1 par
value common stock.
(5) April 6th, the company received cash of $1,000 from client B for the services that the company
provided to the client during January 2021.
(6) April 15th, the company borrowed $10,000 from a bank, at an annual interest rate of 6%, to be paid in
the next 6 months.
(7) April 18th purchased office supplies by cash for $800.
(8) April 24th, the company recorded revenue for consulting services provided to client C on account from
April 13-24th, $1,150. The term of payment is 2/10, n/30.
(9) April 30th, the company recorded $3,295 cash from client D for services provided from April 20th–
30th.
(10) April 30th, the company paid utilities bill for the month of April for $300.
Requirements:
Using the worksheet provided, you are required to do the following:
1. Record the opening balance of all accounts based on the Balance Sheet of March 2021
2. Record the above transactions in the General Journal and post them to the General Ledger.
3. On April 30th, record the following adjustments in the General Journal and Ledger:
a. Accrued interest expense on bank loan from April 15th.
b. Depreciation of the office equipment during the month of April is $100.
c. Accrued employee's salary on April 30th is $2,100.
d. Adjustment for Prepaid rent expenses paid on April 1st that have been used during
the month of April.
e. Ignore taxation.
4. Prepare trial balance and make sure it is balanced, post-closing entry and prepare balance sheet
and income statement of the company for the month of April.
5. Present your accounting entries, general ledger, trial balance, and financial statements in
accordance with accounting presentation principles and will sufficient information about the
company and accounting period.
Page Break
Nguyen & Tran Co.
Balance Sheet
As of March 31, 2021.
Assets
Current Assets
Cash $ 7,568
Accounts Receivable 2,452
Prepaid Rent 3,000
Prepaid Insurance 1,200
Supplies 800
Total Current Assets $ 15,020
Property Plant & Equipment
Office Equipment $ 2,400
Accumulated Depreciation (600.00)
Property Plant & Equipment Net $ 1,800
Total Assets $ 16,820
Liabilities
Current Liabilities
Account Payables $ 300
Wages Payable 2,000
Total Current Liabilities $ 2300
Unearned Revenue $ 955
Total
liabilities $ 3,255
Stockholders' Equity
Contribute Capital $ 12,000
Retained Earnings $ 1,565
Total Stockholder's Equity $ 13,565
Total Liabilities & Stockholders' Equity $ 16,820
