Case 4-4 - Group 5

Ans 1
Ans2
Capital Account
Journal
45500
Assets
Cash
Security Deposit
Accumulated
Depreciation
Prepaid Asset
Cash Balance
3900
900
16920
Inventory
Furniture
Less Depreciation-Furniture
Account
Receivables
Liablities
1520
76160
Ans3
Withdrawls
COGS
Parking Revenue
Lease Expense
4500
13390
3640
26400
Equipment
Less Depreciation-Equipment
Prepaid Insurance
Less Accumulated Amortization
Account Receivables
total
Revenues(Less
Commision)
76720
Ans4
He should Not account for the $400 checks as they do not belong to the account period in question
If Suppose out of the 1520 in Account receivables, Knight is expecting 520 to go Bad so the T accou
Dr
Bad Debt Expense

cr
520
Allowance for Doubtful

Accounts
Dr
cr
520
In the balance Sheet it will come as
Account
Receivables
Less Allowance for
Doubtful Accounts
Net Account
Receivables
1520
520
1000
Since the Firm and individual are different as per the entity concept therefore t
30-Apr
2800
40000
6000
1200
31-Jul Liablities
16920
2850 Note Payable
30-Apr
31-Jul
47310
5290 Rent Payable

6000 Utility Payable
-150 Wages Payable
3000
350
2100
75000 Commision Payable

-3750
1200
-300
1520
23400
he account period in question,however if he still wants to enter so an asset account receivable

g 520 to go Bad so the T accounts will be here under
50000
104580
Cash Flow Statement

Receipts
Opening Cash
Parking Space Revenue
Service Revenues
Payments
2800 Inventory Purchased
3300 Payroll Expense
95300 Utility
Miscellaneous Expenses
lease payment
Loan repayment
Owners Drawings
8230
34560
1700
6600
26400
2490
4500
76160
Total Cash Inflow

Net cash
101400 Total Cash Outflow

16920
84480
OE
Capital
Losses
30-Apr
50000
31-Jul
45500
-17080
Income Statement(01 May-31 July)

Revenues
3640
Service Revenue
96480
less Commision
23400
Total revenues
76720
Cost of Goods Sold
13390
Gross Profit
63330
Expenses
Rent
Payroll Expense
Other Expenses
EBITDA
4500
36660
35050
-12880
Depreciation expense
Amortization expense
Net loss
3900
300
-17080
50000
28420
Journals
Date
1st April
30th April
30th April
1-May
particulars
Cash
Capital
Debit
Credit
40000
40000
Security Deposit
Cash
cash
Capital
Furniture
Cash
Insurance
cash
40000
Inventory
Security Deposit
Equipment
Security Deposit
Note payable
10450
Prepaid rent
Security Deposit
Commision Payable
Service revenue
Cash
Parking Space revenue
Cash
Service revenue
Inventory
40000
10000
10000
6000
6000
1200
1200
10450
75000
25200
49800
1500
1500
23400
23400
3300
3300
95300
95300
8230
Cash
Payroll Expense
cash
Utility
Cash
Cash
Lease payment
Cash
Note Payable
8230
34560
34560
1700
1700
6600
6600
26400
26400
2490
cash
Owners Drawings
cash
Account Receivables
Parking Space revenue
Service Revenue
Payroll Expense
Wages payable
Utilitiy
Utilities Payable
Cost of Goods Sold
Inventory
Account Receivables
Service Revenue
Rent
Prepaid rent
rent Payable
Depreciation Expense
Accumulated Depreciation
Amortization Expense
Accumulated Amortization
2490
4500
4500
1070
340
730
2100
2100
350
350
13390
13390
450
450
4500
1500
3000
3900
3900
300
416690
300
416690
13390
National
cash
insurance
grease inv
uniform
Equipment
4350
1200
6320
4130
75000
liablity
50000
Cash Account(A)
Dr
Date
To
Cr
Amount
Balance Brought
Forward
Parking Space
Revenue
Service Revenue
Date
2800
By
Amount
Owner's Drawing
3300
95300
4500
Lease payment
26400
inventory Purchased
Payroll expenses
Utilities
Note payable
8230
34560
1700
6600
2490
101400
Balance carry Forward
total
101400
16920
101400
Notes payable(L)
Dr
Date
To
cash
Cr
Amount
Date
2490
Balance carry
forward
Total
By
Equipment
Amount
49800
47310
49800
49800
Cost of Goods sold(E)

Dr
Date
To
Inventoty
Total
Cr
Amount
Date
13390
By
Balance Carry Forward
13390
Amount
13390
13390
Commision Payable(L)
Dr
Date
To
Cr
Amount
Date
By
Amount
Balance Carry
Forward
23400
Total
23400
Service Revenue
23400
23400
Wages Payable
Dr
Date
To
Cr
Amount
Date
By
Amount
Balance Carry
Forward
2100
Payroll Expense
2100
Total
2100
Total
2100
Prepaid Rent(A)
Dr
Date
To
Security Deposit
Cr
Amount
Date
1500
By
Rent expense
Amount
1500
Dr
Date
To
Cr
Amount
Accumulated
DepreciationEquipment
3750
Accumulated
DepreciationFuirniture
Total
150
3900
Date
By
Amount
3900
3900
Accumulated Amortization
Date
To
Dr
Amount
Cr
Date
Balance
Carry
Forward
300
Total
300
Capital Account
Dr
Date
To
Cr
Amount
cash
balance
Carry
Forward
Total
Date
4500
By
Amount
Balance Brought Forward
45500
50000
50000
50000
Inventory(A)
Dr
Date
To
Cr
Amount
Security
Deposit
Cash
total
Date
10450
8230
By
Amount
Cost of Goods Sold

18680
13390
5290
18680

Dr
Date
To
Cr
Amount
Balance
carry
Forward
3640
Total
3640
Date
By
Amount
Cash
Account Receivables
3300
340
3640
Account Receivable(A)
Dr
Date
To
Service
Revenue
Cr
Amount
1070
Date
By
Amount
1410
Parking
Space
Revenue
Total
340
1410
1410
Utility Expense
Dr
Date
To
Cr
Amount
Cash
1700
Utilities
Payable
Total
350
2050
Date
By
Amount
2050
2050
Rent Expense
Dr
Date
Date
To
Cr
Amount
Prepaid
Rent+Ren
t payable
4500
Total
4500
Date
By
Accumulated Deprecition-Equipment(A)
Dr
Cr
To
Amount
Date
By
Balance
Carry
Forward
3750
Total
3750
Amount
3750
3750
Cr
Amount
4500
4500
tion
By
Amount
Date
To
Accumulated Deprecition-furnitu
Dr
Amount
Amortizati
on
Expense
300
150
300
Total
150
Security Deposit(A)
Dr
Date
To
Cr
Amount
Balance
Brought
Forward
Date
40000
By
Inventory Purchased
Equipment
Prepaid Rent
Balance carry forward

Total
40000
Equipment(A)
Dr
Date
To
Cr
Amount
Note
Payable+Secur
ity Deposit
75000
Total
75000
Date
By
Balance Brought Forward
Service Revenue
Dr
Date
To
Cr
Amount
Commision
Payable
Balance Carry F
Total
Date
23400
73080
96480
By
Cash
Acccount Receivable
Payroll Expense
Dr
Date
To
Cash
Cr
Amount
34560
Date
By
Wages Payable
Total
2100
36660
Total
Utilities Payable
Dr
Date
To
Cr
Amount
Date
Balance Carry
Forward
350
Total
350
By
Utility expense
Rent Payable
Dr
Date
To
Cr
Amount
Balance Carry
Forward
3000
Total
3000
Date
By
Rent expense
Amortization Expense
Dr
Date
To
300
Total
300
Cr
By
Amount
Accumulated
Amortization
eprecition-furniture(A)
Date
Cr
Amount
Date
By
Depreciati
150
150
Amount
10450
25200
1500
2850
40000
Amount
75000
75000
Amount
95300
1180
96480
Amount
36660
36660
Amount
350
350
Amount
3000
3000
Amount
300
300

Case 4-4 - Group 5

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Case 4-4 - Group 5

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Ans 1

Bad Debt Expense

Allowance for Doubtful

5290 Rent Payable

75000 Commision Payable

he account period in question,however if he still wants to enter so an asset account receivable

Cash Flow Statement

Total Cash Inflow

101400 Total Cash Outflow

Income Statement(01 May-31 July)

Cost of Goods sold(E)

Balance Carry Forward

Balance Brought Forward

Cost of Goods Sold

Parking Space Revenue

Balance carry Forward

Balance Carry Forward

Balance Carry Forward

Balance carry forward

Balance Brought Forward

Balance Carry Forward

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