Accounting Assignment (100)
1. Natasha started her business, Natasha Courier System, on January 1, 2018. During the first month of its operations, the business engaged in the following transactions:
Date Transactions
Jan 1 Natasha invested cash $100,000 as initial capital to start the business.
Jan 2 An amount of $36,000 was paid as advance rent for three months. Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining amount was recognized as note payable.
Jan 3 Purchased office supplies costing $17,600 on account.
Jan 13 Provided services to its customers and received $28,500 in cash.
Jan 13 Paid the accounts payable on the office supplies purchased on January 4.
Jan 14 Paid wages to its employees for the month of January, aggregating $19,100.
Jan 18 Provided $54,100 worth of services to its customers. They paid $32,900 and promised to pay the remaining amount in the next month.
Jan 23 Received $15,300 from customers for the services provided on January 18.
Jan 25 Received $4,000 as an advance payment from customers.
Instructions:
a) Journalize the transactions with explanations. (20)
b) Post the transactions in the ledger account. (20)
c) Prepare a Trial Balance for Jan 31, 2018. (10)
Write short notes on the following accounting principles with proper examples: (20)
a) Consistency
b) Economic Entity Assumption
c) Revenue Recognition Principle
d) Matching Concept
e) Accrual Basis of Accounting
