SUBJECT INTRODUCTION TO ACCOUNTING
LECTURER MD Abu Jahid, MBA
TIME 3.15 - 5.45 PM
DAY/DATE Tuesday, 12th November 2019
VENUE PS.304
DEPT/PROGRAM Economics - IPIEF TYPE/RULE Closed Book
- Please pray before and after doing your exam!
- Read carefully every single question, and provide your answers on the available sheets!
- You may use dictionary to help answer your exam!
- Any form of cheating is NOT entertained. Therefore, this exam is considered VOID and will be calculated in your final results.
1. a) Define Accounting, Who are the users of accounting information?
b) Explain the basic accounting equation.
2. The trial balance of Smart Touch at May 31, 2013.
SMART TOUCH LEARNING Unadjusted Trial Balance
May 31, 2013
SL Account Ref. Debit($) Credit ($)
1 Cash 4,800
2 Accounts receivable 2,200
3 Supplies 700
4 Prepaid rent 3,000
5 Furniture 18,000
6 Building 48,000
7 Accounts payable 18,200
8
Unearned service
revenue 600
9 Notes payable 20,000
10 Bright, capital 33,200
11 Bright, drawing 1,000
12 Service revenue 7,000
13 Salary expense 900
14 Utilities expense 400
15 Total $79,000 $79,000
MID EXAM, ODD SEMESTER 2019/2020
INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF) DEPARTMENT OF ECONOMICS
FACULTY OF ECONOMICS AND BUSINESS UNIVERSITAS MUHAMMADIYAH YOGYAKARTA
Information for Adjustments at May 31, 2013
a) Prepaid rent expired, $1,000, b) Supplies used, $100, c) Depreciation on furniture, $300, d) Depreciation on building, $200, e) Accrued salary expense, $900, f) Accrued interest on note, $100, g) Accrued service revenue,
$400, h) Service revenue that was collected in advance and now has been earned, $200.
Required: Prepare an Adjusted Trial Balance.
3. Mr. Rahim Miah started a Laundry Business on July 1, 2019, and had the following transactions:
July-1. Started business by investing $10,000 cash and equipment with book value of $ 2,500.
July-5. Purchased $ 300 of laundry supplies on account.
July-7. Received $ 2,700 for laundry services.
July-9. Paid $ 200 due for purchase of laundry supplies on July 5 transaction.
July-13. Paid $ 300 rent for the month.
July-15. Paid employee salary of $ 500 for the month.
July- 21. Purchased new washing machines for $ 3,000 on account.
July-22. Provided laundry service of $ 300 on account.
July-30. Withdrew $ 1,000 for personal use.
Requirement: Prepare a Tabular Analysis of the above transactions according to the format.
4. Mr. Abir started a business on the 1st January 2019 with Machinery $ 40,000; Furniture $ 10,000; Building
$ 50,000; and Cash $ 80,000. Transactions during January are as follows:
January-1: Purchased goods for cash from Razu & Sons $ 35,000 4: Purchased goods from Niaz $ 40,000
7: Sold goods for cash $ 70,000
12: Cash deposited into Bank $ 80,000 14: Purchased Machinery for cash $ 10,000 15: Sold goods to Jones on account $ 30,000 16: Returned goods to Niaz $ 2,000
18: Paid to Niaz by check $ 20,000
20: Withdrawal of cash $ 10,000 from Bank for personal use 25: Received check from Jones and deposited into Bank $ 20,000 27: Paid salary for the month of January $ 5,000
29:Purchased Supplies for cash $ 2,000 30: Bank credited interest of $ 1,000 Requirement: Journalize the above transactions.
5. On December 31, 2018, the following trial balance is prepared for 'Farhin International'. Due to some mistakes the trial balance does not balance.
SL Account Heading Ref. Debit($) Credit($)
1 Farhin, Capital 20,000
2 Cash 2,425
3 Accounts Receivable 5,000
4 Accounts payable 5,855
5 Unearned revenue 1,250
6 Supplies 1,870
7 Prepaid Insurance 620
8 Office Equipment 30,650
9 Accumulated depreciation-equipment 5,270
10 Farhin, Drawing 1,200
11 Fees revenue 35,125
12 Salaries expenses 12,415
13 Rent expenses 3,600
14 Utilities expenses 2,720
15 Investment in securities 11,000
16 Notes payable 3,500
17 Interest revenue 500
Required: Find out the mistakes and prepare a correct trial balance.
6. Presented here are the accounts of Haniya Design Center for the year ended December 31, 2018.
Land $75,000 Accounts payable 26,000
Note payable 48,000 Accounts receivable 12,000 Property tax expense 1,000 Advertising expense 19,000
Withdrawals 36,000 Building 146,000
Rent expense 31,000 Cash 36,000
Salary expense 180,000 Equipment 26,500
Salary payable 12,000 Insurance expense 12,500 Service revenue 425,000 Interest expense 8,000
Supplies 25,000
Haniya, Capital 31 Dec 2017 97,000
Required: Prepare Haniya’s income statement, statement of owner’s equity and balance sheet!
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