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Questions Cet 11

The document is an assignment for ACCT122 focusing on introductory financial accounting, specifically requiring students to make adjusting journal entries based on provided trial balance data for Swift Current Courier Company as of December 31, 2024. It includes calculations for payroll adjustments, depreciation, and other expenses, as well as instructions for preparing an adjusted trial balance and financial statements. The assignment is structured to assess students' understanding of financial accounting principles and their application in real-world scenarios.

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9 views3 pages

Questions Cet 11

The document is an assignment for ACCT122 focusing on introductory financial accounting, specifically requiring students to make adjusting journal entries based on provided trial balance data for Swift Current Courier Company as of December 31, 2024. It includes calculations for payroll adjustments, depreciation, and other expenses, as well as instructions for preparing an adjusted trial balance and financial statements. The assignment is structured to assess students' understanding of financial accounting principles and their application in real-world scenarios.

Uploaded by

greensrestaurant.sk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCT122 - Introductory Financial Accounting I

Assignment #2
Chapter 3 Name: Student's Name
Student Number: 118

1. Swift Current Courier Company prepared a trial balance at its year-end date, December
40 marks 31, 2024. Make the required adjusting journal entries, based upon the following
additional information. Show your calculations in the 'explanation' line. Round your
answers to the nearest dollar. (20 marks)

Swift Current Courier Company


Unadjusted Trial Balance
December 31, 2024
Dr Cr
101 Cash $ 10,000 -
110 Accounts Receivable - -
112 Notes Receivable 12,600 -
113 Interest Receivable - -
114 Supplies 8,200 -
124 Prepaid Insurance 1,800 -
125 Prepaid Rent 9,000 -
130 Equipment 75,300 -
131 Accumulated Depreciation, Equipment - -
160 Vehicles 75,300 -
161 Accumulated Depreciation, Vehicles - $ 22,600
210 Accounts Payable - 3,100
215 Wages Payable - -
220 Unearned Revenue - 7,900
300 Sharmila Sajjad, Capital - 187,311
310 Sharmila Sajjad, Withdrawals 115,500 -
400 Service Revenue - 1,523,900
450 Interest Revenue - 91,000
610 Advertising Expense 17,600 -
630 Depreciation Expense, Vehicles - -
631 Depreciation Expense, Equipment - -
640 Insurance Expense - -
660 Rent Expense 55,300 -
665 Supplies Expense - -
670 Utilities Expense 14,100 -
680 Wages Expense 1,441,111 -
$ 1,835,811 $ 1,835,811
Swift Current Courier Company is open 7 days a week. This year, December 31,
2024, falls on a Tuesday. The weekly pay period ends on Saturdays. If the daily
1
cost of payroll is $1,133, calculate the adjusting entry for the year-end that
would be added to the wages of $1,441,111.

Swift Current Courier Company purchased Equipment during the year for
2
$75,300 at the start of March. The asset has an estimated life of 10 years.

At the beginning of August, Swift Current Courier Company signed a 10-year


rental agreement with WVS Property Management Company worth $9,000 for
3
a building for the business. They paid for the entire rental agreement up-front.
No adjustment has been made yet for any rent expense.

The company loaned $12,600 to a customer on March 1, 2024, at an interest


4
rate of 12%. No payment of interest or principal has happened as of year-end.

5 The company needs to record $2,774 of depreciation on its Vehicles.

During the fiscal year at the beginning of the month of August, the company
6 purchased insurance, as recorded in Prepaid Insurance. No adjustment
happened all year.

In August, the company entered into a contract to provide services for a


7
customer. The customer paid $7,900. At year-end, $877 was unearned.

The company checked the unused supplies in the storeroom and discovered
8
$2,321 remained.

2. Once finished with the journal entries, prepare an Adjusted Trial Balance for Swift Current
Courier Company. Do not prepare a general ledger. (9 marks)
3. From the Adjusted Trial Balance, prepare the Income Statement, Statement of Changes in
Equity, and Balance Sheet for the company at the year-end. (11 marks)

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