Transferred cash from a personal bank account to an account to be used for the business, Br 500, 000.

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Admas University
School of postgraduate program
Assignment for the course: Accounting for mangers
 Assignment type: Group
 Maximum number of group mates: 7
 Maximum marks allotted: 20%
 Submission date: January 9,2019
1. Ilhan, an architect, established a business entitled ‘Ilu architectural services ‘on July 1, 2018. During the
month, the business completed the following transactions connected with her professional practice:
Date Transactions
2018
July 1
Ilhan Transferred cash from a personal bank account to an account to be used for the business, Br 500, 000.
2 Paid six month rent for office and workroom, Br 30, 000.
2 Purchased used automobile for Br90, 000, paying Br10, 000 cash and giving a note payable for the remainder in 6 months
including 10% interest.
6 Purchased office and computer equipment on account, Br15, 000.
7 Received cash of Br 50,000 for service to be performed in the coming 3 months and recorded unearned revenue
8 Paid cash for supplies, Br 12, 000.
10 Paid cash for annual insurance policies, Br 7200
12 Received cash from client for plans delivered, Br 40, 000.
15 Received cash from client for plans delivered, Br20, 000.
17 Paid cash for miscellaneous expenses, Br 2,000.
20 Paid cash to creditors on account for equipment purchase Br 15, 000.
25 Received invoice for blueprint service, due in August, Br 5,000.
26 Recorded fee earned on plans delivered, payment to be received in August, Br 30, 000.
27 Paid gas, oil, and repairs on automobile for July, Br1, 500.
28 Paid wage of assistant, Br10, 000.
29 Ilhan withdrew cash of Br 10,000 from the business for her personal use

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REQUIRED
1. Enter the transactions in a general journal
2. Create T –accounts based on the following chart of accounts and post the journal entries to their respective
accounts.
Assets Liability Equity Revenues Expenses
Cash 101 Notes payable 201 Ilhan capital 301 Fees earned 401 Salary expense 501
Account receivable 102 Account payable 202 Ilhan withdrawal 302 Supply expense 503
Supplies 107 Unearned revenue 207 Rent expense 507
Prepaid insurance 108 Wage payable 208 Insurance expense 509
Prepaid rent 109 Interest payable 207 Utility expense 514
Equipment 130 Depreciation expense 517
Vehicle 131 Blue print expense 520
Accumulated depreciation
equipment 131
Interest expense 524
Accumulated depreciation
vehicle 132
Miscellaneous expenses
540
3. Prepare an adjusted trial balance
4. Journalize the adjusting entries on the general journal and post to the respective account (you may use worksheet)
a) one month prepaid rent is expired
b) office supplies on hand is only Birr 12,000
c) one month prepaid insurance is expired
d) Birr 10,000 of the advance cash collection of July 7 is earned(service already given)
e) The equipment has depreciated Br 100
f) Br 2,000 of wage for employees is incurrent but not yet paid and recorded
g) Br 5,000 service offered for a client but not yet collected or recorded
h) One month interest for July 2 purchase on notes is accrued
5. Prepare adjusted trial balance
6. Prepare financial statements including
a) The income statement.

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b) The statement of change in equity
c) Statement of financial position
d) Cash flow statement
7. Journalize the closing entries and post to their respective accounts
8. Prepare a post-closing trial balance.
9. Prepare an appropriate reversing entries