Practical class for HCM 213 Question no 1- HOME WORK The following are account b
ID: 2774477 • Letter: P
Question
Practical class for HCM 213
Question no 1- HOME WORK
The following are account balances as of 31/12/2014, for Saudi German Hospital. Prepare a Balance sheet as 31/12/2014. Givens: amount in SR
Building
800,000
Cash
600,000
Net Accounts Receivables
355,000
Accrued Expenses
225,000
Stock
405,000
Debt for long term
305,000
Salary Payable
275,000
Accumulated Depreciation
275,000
Debtors
255,000
Currant liability
205,000
And here some of the specimen accounting information for your kind understanding:
Like part of the financial statement for your understanding.
ACCOUNTING INFORMATION STARTING FROM BEGINNIG..ITS JUST FOR YOUR KIND PERUSAL.
JUST FOR UNDERSTANDING …………………ALL STEPS OF
PRACTICAL EXERCISES FOR CLASS- 1
Transactions analysis: Medina & Company Started a business
Mohammed invested SR 40,000 cash to start the business in return for stock
purchased furniture paid SR 2000 cash
purchased equipment for SR 30,000 cash
purchased furniture of SR 400 and equipment of SR 2000 on account
borrowed SR 8000 cash from Al Rajhi bank
You are requested to prepare a transaction analysis, income statement, statement of retained earnings, statement of cash flows and balance sheet from the above information.
Solution
Assets =
Liabilities + Equity
Cash
Furniture
Equipment
a/c payable
Notes payable
Common stock
1
40,000
40,000
2
(2000)
2,000
3
(30,000)
30,000
4
400
2,000
2400
5
8000
8000
16,000
2400
32,000
2,400
8,000
40,000
50,400 =
50,400
1 Provided Engineering services and received SR 6,000,
2 Provided Educational services and received SR 3,000
3 Paid salaries of SR 1600 cash to employees
4 Paid taxi expenses of SR 200 cash
5 Dividend of SR 1000 paid to the shareholders
Assets =
Liabilities + Equity
Cash
Furniture
Equipment
A/c payable
Notes payable
Common stock
Dividend
revenue
expenses
16,000
2400
32,000
2,400
8,000
40,000
1
6000
6000
2
3000
3000
3
(1600)
(1600)
4
(200)
(200)
5
(1000)
(1000)
22,200
2400
32,000
2,400
8,000
40,000
(1000)
9,000
(1800)
56,600 =
56,600
Income Statement of Medina Company for Statement of Retained Earnings of For the month ended 31/12/14 Medina Company For the month ended
31/12/14
Revenue
Eng. Services
6000
Educational services
3000
Expenses
salaries Expenses
(1600)
taxi expenses
(200)
Net Income
7,200
Retained earnings on 1/12
-
+ net income
7200
dividend
(1000)
Retained earnings on 31/12/14
6200
Statement of cash flows of Medina Company For the month ended 31/12/14
Amount
Amount
Cash flows from Operating Activities
Cash received form clients
9000
Purchases of supplies
(2000)
Cash paid to employees
(1600)
Cash paid to taxi expense
(200)
Net Cash provided by Operating Activities
5,200
Cash flows from Investing Activities
Purchases of equipment
30,000
Net Cash provided by Investing Activities
(30,000)
Cash flows from Financing Activities
Investment by shareholders
40,000
Borrowed at bank
8,000
Dividend paid
(1000)
Net Cash provided by Financing Activities
47,000
Net increase cash
22,200
Balance sheet of Medina Company For the month ended 31/12/14
Assets
Amount
Liabilities
Amount
Cash
22,200
A/c payable
2,400
Furniture
2,400
Notes payable
8,000
Equipment
32,000
Total Liabilities
10,400
Equity
Common stock
40,000
Retained earnings
6200
Total Assets
56,600
Total Liabilities + Equity
56,600
ACCT 101 PRACTICAL EXERCISES FOR CLASS- 2
Transactions analysis: Riyadh & Company Started a business
1 Ahmed invested SR 60,000 cash to start Riyadh & Company on Dec. 1
2 Riyadh & Company purchased supplies by paying SR 5000 cash
3 Riyadh & Company purchased equipment for SR 52,000 cash
4 Riyadh & Company purchased 14,200 of supplies on credit
5 Riyadh & Company Provides Engineering services and immediately received SR 8400, cash.
You are requested to record the transition on double entry system (journal entry) and prepare a “ T” shape account (ledger account) balance off the account and prepare a trial Balance from the above information.
Solution : Journal entry
Date
Particulars
l.f.
Amount DR.
Amount CR
Dec. 1
Cash A/c
60,000
Common stock
60,000
(being business started)
Supplies
5,000
Cash
5,000
purchased supplies by cash
Equipment
52,000
Cash
52,000
purchased equipment cash
Supplies
14,200
Account Payable
14,200
purchased supplies by cash
Cash A/c
8,400
Engg. Services
8,400
(being services provided)
“T” shape Account (ledger account)
Cash A/c
Date
Particulars
l.f
Amount Dr
Date
Particulars
l.f
Amount Cr
1/12
Common stock
60,000
Supplies
5,000
Eng. Ser. Revenue
8,400
Equipment
52,000
Bal. c/d
11,400
68,400
68,400
Common stock A/c
Date
Particulars
l.f
Amount Dr
Date
Particulars
l.f
Amount Cr
1/12
Cash
60,000
Bal. c/d
60,000
60,000
60,000
Supplies A/c
Date
Particulars
l.f
Amount Dr
Date
Particulars
l.f
Amount Cr
1/12
Cash
5,000
Account payable
14,200
Bal. c/d
19,200
19,200
19,200
Equipment A/c
Date
Particulars
l.f
Amount Dr
Date
Particulars
l.f
Amount Cr
1/12
Cash
52,000
Bal. c/d
52,000
52,000
52,000
Account payable A/c
Date
Particulars
l.f
Amount Dr
Date
Particulars
l.f
Amount Cr
Bal. c/d
14,200
Supplies
14,200
14,200
14,200
Engg. Services A/c
Date
Particulars
l.f
Amount Dr
Date
Particulars
l.f
Amount Cr
Bal. c/d
8,400
Cash
8,400
8,400
8,400
Trial balance of Riyadh & Company for the month ended 31/12/2014
Particulars
Amount Dr
Amount Cr
Cash
11,400
Common stock
60,000
Supplies
19,200
Equipment
52,000
Account payable
14,200
Engineering services
8,400
82,600
82,600
Home work Question for practice
Extract a Trial balance from the following information.
Particulars
Amount
Building
60,000
Machinery
17,000
Return outward
2,600
Bad debts
2,800
Cash
400
Discount received
3,000
Bank overdraft
10,000
Creditors
50,000
Purchases
100,000
Capital
73,600
Fixture
5,600
Sales
104,000
Debtors
60,000
Interest received
2,600
Building
800,000
Cash
600,000
Net Accounts Receivables
355,000
Accrued Expenses
225,000
Stock
405,000
Debt for long term
305,000
Salary Payable
275,000
Accumulated Depreciation
275,000
Debtors
255,000
Currant liability
205,000
Explanation / Answer
Answer: To the first question:
The net accounts receivable would already have been taken care of adjusting debtor with allowance for bad debt. So the debtor figure is brought in here.
Balancesheet of saudi german hospital Liabilities InSR Assets InSR InSR Owner's Equity 875000 Building 800000 (balancing figure) Less: Accumulated Depreciation 275000 Debt for long term 305000 Net Fixed asset 525000 Currant liability 205000 Cash 600000 Salary Payable 275000 Net Accounts Receivables 355000 Accrued Expenses 225000 Stock 405000 Total Liabilities 1885000 Total Assets 1885000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.