Financial Accounting
Required
| Before you begin, print out all the pages in this workbook. | |
| Various transactions of Singh Services Inc. occurred during August 2019, its first month of operations. Click on "Transactions" tab at bottom of this page to view these. | |
| Required: | |
| 1 | On the printed "Worksheet" page, record the information from the "Transactions" page and total of each column at the end of August. |
| 2 | On the second part of the "Worksheet" page, prepare an income statement and statement of changes in equity for the month ended August 31, 2019, and a balance sheet at August 31, 2019. Identify the revenue earned as Fees. Record the expenses in alphabetical order. |
Transactions
| August | Transaction | Amount |
| 1 | Issued common shares for cash | 5,000 |
| 1 | Borrowed cash from the bank | 7,000 |
| 1 | Paid cash for a used truck | 6,000 |
| 4 | Paid cash for a one–year truck insurance policy effective August 1 (record as an asset) | 600 |
| 5 | Collected fees in cash from a client for work to be performed at a later date | 5,000 |
| 7 | Billed a client for services performed today | 1,000 |
| 9 | Paid cash for supplies purchased and used today | 200 |
| 12 | Purchased supplies on credit (record as an asset) | 100 |
| 15 | Collected part of the amount billed August 7 | 400 |
| 16 | Paid cash for advertising in The News during the first two weeks of August | 200 |
| 20 | Paid in cash part of the amount owing for supplies purchased on August 12 | 80 |
| 25 | Paid the following August expenses in cash: | |
| Rent | 700 | |
| Salaries | 2,000 | |
| Telephone | 200 | |
| Truck operating | 500 | |
| 28 | Called clients about payment of the balances owing from August 7 | |
| 29 | Billed a client for services performed today, including $1,500 related to cash received August 5 | 5,000 |
| 31 | Transferred August’s prepaid expenses to insurance expense | 60 |
| 31 | Counted supplies and found this amount still on hand (recorded the amount used as an expense). | 80 |
Worksheet 1
| Singh Services Inc. Transactions Worksheet | ||||||||||||||||||
| Date | Assets | = | Liabilities | + | S/H Equity | Description | ||||||||||||
| Cash | + | Acct. Rec. | + | Ppd. Exp. | + | Unused Supp. | + | Truck | = | Bank Loan | + | Acct. Pay. | + | Unear. Rev. | + | Comm. Stock | + | Ret. Earn. |
| August | ||||||||||||||||||
| 1 | ||||||||||||||||||
| 1 | ||||||||||||||||||
| 1 | ||||||||||||||||||
| 4 | ||||||||||||||||||
| 5 | ||||||||||||||||||
| 7 | ||||||||||||||||||
| 9 | ||||||||||||||||||
| 12 | ||||||||||||||||||
| 15 | ||||||||||||||||||
| 16 | ||||||||||||||||||
| 20 | ||||||||||||||||||
| 25 | ||||||||||||||||||
| 28 | ||||||||||||||||||
| 29 | ||||||||||||||||||
| 31 | ||||||||||||||||||
| 31 | ||||||||||||||||||
| Totals | ||||||||||||||||||
| ASSETS | = | LIAB. + S/H EQUITY | = | |||||||||||||||
Worksheet 2
| Singh Services Inc. | Singh Services Inc. | ||
| Income Statement | Balance Sheet | ||
| For the Month Ended August 31, 2019 | At August 31, 2019 | ||
| Revenue | Assets | ||
| Fees | Cash | ||
| Acct. rec. | |||
| Expenses | Ppd. exp. | ||
| Advertising | Unused supp. | ||
| Insurance | Truck | ||
| Rent | Total assets | ||
| Salaries | |||
| Supplies | Liabilities | ||
| Telephone | Bank loan | ||
| Truck operating | Acct. pay. | ||
| Total expenses | Unearn. rev. | ||
| Net income (loss) | Total liabilities | ||
| Singh Services Inc. | Stockholders' Equity | ||
| Statement of Changes in Equity | Common stock | ||
| For the Month Ended August 31, 2019 | Retained earn. | ||
| Total S/H equity | |||
| Common stock | Retained earnings | Total equity | Total liab. and equity |
| Opening balance | |||
| Stock issued | |||
| Net income (loss) | |||
| Ending balance | |||
Copyright
| Copyright © 2018 David Annand |
| Published by David Annand |
| Box 308, Rochester AB T0G 1Z0 |
| ISBN: 978-0-9953266-6-8 |
| Library and Archives Canada Cataloguing in Publication |
| Annand, David, 1954– |
| This case is licensed under a Creative Commons License, Attribution–Non-commercial–Share Alike 4.0 USA see www.creativecommons.org. This material may be reproduced for non-commercial purposes and changes may be used by others provided that credit is given to the author. |
| To obtain permission for uses beyond those outlined in the Creative Commons license, such as personalized assignments for students, please contact David Annand at davida@athabascau.ca. |
| Latest version available at https://open.bccampus.ca/find-open-textbooks/ |
| Please forward suggested changes to davida@athabascau.ca. |
| First US Edition |
| July 31, 2018 |