Question

Formula worksheet?

Journal Entries?

Financial statements?

Event List

1. Opened a bank account with previously earned (retained earnings) money for $50,000

2. Bought a house by paying $25,000 down in cash and taking a loan of $225,000

3. Bought a vehicle by paying $800 down in cash and taking a loan of $32,200

4. Worked (performed services) to clients for $45,000 cash

5. Paid for materials used (expense) in the services performed with cash for $13,000

6. Paid for repairs and utilities of the house and vehicle (just regular expenses) with cash for $8,500

7. During the year, you paid $5,000 in interest and $9,500 in principal on the loan on the house with cash

8. During the year, you paid $600 in interest and $3,400 in principal on the loan on the vehicle with cash

9. During the year, you paid $18,500 for personal-related expenses in cash

10. At the end of the year, you purchased $3,250 in gifts (expenses) for others that you paid for with a new credit card

Event List

1. Opened a bank account with previously earned (retained earnings) money for $50,000

2. Bought a house by paying $25,000 down in cash and taking a loan of $225,000

3. Bought a vehicle by paying $800 down in cash and taking a loan of $32,200

4. Worked (performed services) to clients for $45,000 cash

5. Paid for materials used (expense) in the services performed with cash for $13,000

6. Paid for repairs and utilities of the house and vehicle (just regular expenses) with cash for $8,500

7. During the year, you paid $5,000 in interest and $9,500 in principal on the loan on the house with cash

8. During the year, you paid $600 in interest and $3,400 in principal on the loan on the vehicle with cash

9. During the year, you paid $18,500 for personal-related expenses in cash

10. At the end of the year, you purchased $3,250 in gifts (expenses) for others that you paid for with a new credit card

Answer 1

1. Bank A/c...Dr 50000

To Cash (retained earnings) A/c. 50000

2. Building (House) A/c.--Dr. 250000

To Cash A/c. 25000

To House Loan A/c. 225000

3. Vehicle A/c--------Dr 33000

To Cash 800

To Vehicle Loan A/c 32200

4. Cash A/c --------Dr. 45000

To Sales (Clients) 45000

5. Material Exp A/c----Dr. 13000

To Cash A/c. 13000

6. General Exp (House & Vehicle) A/c-----Dr. 8500

To Cash A/c. 8500

7. House Loan A/c. ------Dr. 9500

Int Exp. A/c.--------Dr. 5000

To Cash A/c. 14500

8. Vehicle Loan A/c------Dr. 3400

Interest A/c.----------Dr. 600

To Cash A/c. 4000

9. Personal Exp (Withdrawals) A/c. ---Dr. 18500

To Cash A/c. 18500

10. Gift Exp A/c........Dr 3250

To Bank A/c 3250

FINANCIAL STATEMENTS:

Statement of Profit & Loss

To Material exp	13000	By Service to clients (sales)	45000
To Gross profit (b/f)	32000
	45000		45000
To Utility exp(house & vehicles)	8500	By G/P	32000
To House loan int	5000
To Vehicle loan int	600
N/P (B/f)	17900

Balance Sheet

Liabilities	Amount	Assets	Amount
Personal capital (b/f) 50000		House	250000
Add: N/p   17900		Vehicle	33000
Less: Gift Exp (3250)		Bank (50000-3250)	46750
Less: Personal Exp (18500) =	46150
House loan (225000-9500)	215500
Vehicle loan(32200-3400)	28800
Cash Balance (Negative)	39300
Total	329750	Total	329750

Note: Bank account has been opened from previous retained earnings and past year's data is not given so it will no affect current years cash.