Accounting Principles

Accounting Principles

Referencing Styles : Not Selected | Pages : 15

The unadjusted trial balance of Catamaran Rentals is shown below:

The following additional information is available at the end of June: (a) Depreciation on the catamaran fleet for 1 year is $13 000. Depreciation on the office equipment is $600.

 (b) Expired insurance amounted to $4950.

 (c) The balance in the Unearned Rental Revenue account includes $253 received for services rendered on 27 June. 

(d) Salaries earned but not paid amounted to $1720.

(e) Accrued interest on the loan payable is $3560. 

(f) Repairs on one catamaran done in June for $850 have not yet been paid for or recorded. A tax invoice has been issued by the repairer. 

(g) The June telephone costs of $275 have not been paid for or recorded at 30 June 2013. A tax invoice has been received.


Prepare a 10-column worksheet for the year ended 30 June 2013.

Problem 3.5


The following transactions were completed during June:


1. Purchased supplies on credit for $5230.

 3. Received $22 200 from patients as payment on account. 

6. Paid the electricity expense of $8600, previously recorded

10. Performed services for $2000 that was recorded previously as unearned revenue. 

14. Recorded revenue of $162 350 in cash and $12 450 on credit.

Paid salaries of $73 200. 

20 Purchased furniture for $14 000 and paid by electronic transfer. 

23 Paid creditors $6400. 

24 Withdrew $80 000 from the business for personal use. 

26 Purchased insurance policy for $4200 to cover business assets. 

27 Received $12 000 from patients as payment on account. 

29 Recorded revenue of $143 600 in cash and $21 000 on credit. 

30 Paid rent of $24 500.


A. Prepare journal entries to record each transaction.

 B. 1. Open T accounts for the accounts shown in the trial balance.

2. Enter the 31 May balance in each account.

3. Post the journal entries to the T accounts. 

C. Prepare a trial balance as at 30 June 2014.

Problem 2.8


Financial balances for the business of Matina Hana on 30 June 2013 are provided below in a table in accounting equation form similar to the chapter illustrations.

During July, the business of Matina Hana entered into the following transactions: 1. Collected $16 000 of the accounts receivable. 2. Paid $3600 on accounts payable. 3. Purchased equipment for $16 200. Paid $6000 in cash and signed a loan agreement for $10 200 to pay for the remainder of the equipment. 4. Billed customers for services performed, $12 600. 5. Purchased supplies on credit, $750. 

6. Paid expenses in cash, $5850 (wages, $3300; electricity $1650; advertising, $900). 7. The owner withdrew $4000 for personal use. 8. Used $1800 of supplies during the period.


A. List the 30 June balances for assets, liabilities and equity in table form as shown on the previous page.

B. Record the effects of each transaction. Show the total of each column after recording each transaction.

C. Prepare an income statement, a statement of changes in equity and a statement of cash flows for the month ended 31 July 2013, and a balance sheet (account format) as at 31 July 2013.

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