Financial Accounting

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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 [email protected].
Latest version available at https://open.bccampus.ca/find-open-textbooks/
Please forward suggested changes to [email protected].
First US Edition
July 31, 2018