On March 1, 2002, Tahir Muktar, a famous businessman in Addis, opened a business named "Universal Garage" which is organized as a sole proprietorship. The business is established to render car repair, maintenance and related services for fees. Below are chart of accounts for and selected transactions completed by Universal Garage in March 2002.
a) Chart of accounts
b) Transactions
March 1 Received the following assets from its owner, Tahir:
Cash. \( \mathrm{Br}, 8,300 \)
Supplies 2,000
Office Equipment.................... \( \quad 10,000 \)
2 Borrowed Br 5,000 from Dashen Bank
3 Paid \( \mathrm{Br} 1,800 \) for rent on a building leased for business purposes
3 Purchased welding and other repair machinery for \( \mathrm{Br} 3,600 \) cash
4 Paid \( \mathrm{Br} 200 \) for a radio advertisement
8 Sold for \( \mathrm{Br} 200 \) cash old office equipment with a recorded cost of \( \mathrm{Br} 200 \)
13 Paid weekly salary Br 1,200
16 Received \( \mathrm{Br} 14,400 \) from services rendered on cash
20 Paid weekly salary Br 1,200
20 Delivered service on credit, \( \mathrm{Br} 26,000 \)
March 21 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers
23 Received \( \mathrm{Br} 5,000 \) additional cash investment from its owner
24 Repaid \( \mathrm{Br} 1,000 \) bank loan and paid \( \mathrm{Br} 100 \) interest on bank loan
26 Purchased supplies for Br 800 cash
27 Paid \( \mathrm{Br} 100 \) for customer entertainment and other items
27 Paid weekly salary Br 1,200
31 Paid \( \operatorname{Br} 500 \) for electricity and other utilities consumed during the month
31 Received \( \mathrm{Br} 4,200 \) cash from credit customers
31 Paid Tahir Br 1,800 for personal uses
Task 1: Analyzing, Journalizing and posting
a) Journalize the above transactions in a two-column journal
b) Post the journal entries to accounts in the ledger.
c) Determine the account balance of each account in the ledger
Task 2; Adjusting, Journalizing and posting
d) Journalize the necessary adjusting entries
e) Journalize and post adjusting entries
Task 3: Preparing adjusted Trial balance and
f) Prepare adjusted Trial Balance
Task 4: preparing financial statements
i) Income Statement
ii) Capital Statement
iii) Balance Sheet
iv)Journalize and post closing entries
Additional information
a. Cost of supplies remained unconsumed on Mar 31 is \( \mathrm{Br} 900 \)
b. The amount paid on Mar 3 is for a three-month rent
c. The amounts of depreciation for machinery and office equipment are estimated to be \( \mathrm{Br} 560 \) and \( \mathrm{Br} 1,900 \) respectively
d. Universal Garage usually pays Br 1,200 for employee's salary every Saturday for a six-day work week ended on that day.
e. Interest on bank loan accrued but not paid on March 31 total \( \mathrm{Br} 100 \)
