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Financial Transactions Analysis Guide

The document outlines various accounting transactions and analyses for Kinney's Repair Ltd. and Donahue Veterinary Clinic, including tabular analyses, net income calculations, and journal entries. It also explains the effects of debits and credits on different accounts and provides instructions for journalizing transactions, posting to ledgers, and preparing trial balances. The structured approach emphasizes accuracy in financial record-keeping.

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Deil Yesu
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18 views3 pages

Financial Transactions Analysis Guide

The document outlines various accounting transactions and analyses for Kinney's Repair Ltd. and Donahue Veterinary Clinic, including tabular analyses, net income calculations, and journal entries. It also explains the effects of debits and credits on different accounts and provides instructions for journalizing transactions, posting to ledgers, and preparing trial balances. The structured approach emphasizes accuracy in financial record-keeping.

Uploaded by

Deil Yesu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Complete Assignment Solution

Q1. Kinney's Repair Ltd. (May Transactions)

(A) Tabular Analysis:

| Transaction | Cash | Accounts Receivable | Supplies | Equipment | Accounts Payable | Share

Capital | Retained Earnings |

|-------------|------|--------------------|---------|----------|-----------------|--------------|----------------|

| Initial Investment | +10,000 | | | | | +10,000 | |

| Purchased Equipment | -5,000 | | | +5,000 | | | |

| Paid Rent | -400 | | | | | | -400 |

| Purchased Supplies | -700 | | +700 | | | | |

| Advertising on Account | | | | | +250 | | -250 |

| Revenue Earned | +4,700 | | | | | | +4,700 |

| Dividend Paid | -1,000 | | | | | | -1,000 |

| Paid Salaries | -1,000 | | | | | | -1,000 |

| Paid Utilities | -160 | | | | | | -160 |

| Revenue on Account | | +980 | | | | | +980 |

| Collected Receivables | +120 | -120 | | | | | |

(B) Net Income:

Service Revenue = GBP4,700 + GBP980 = GBP5,680

Expenses = GBP400 + GBP700 + GBP250 + GBP1,000 + GBP160 = GBP2,510

Net Income = GBP5,680 - GBP2,510 = GBP3,170

Q2. Donahue Veterinary Clinic (September Transactions)

(A) Tabular Analysis follows the same process as Q1.


(B) Financial Statements:

Net Income = Revenues - Expenses = GBP7,300 - (GBP1,700 + GBP900 + GBP200 + GBP170) =

GBP4,330

Q3. Effects of Debit and Credit:

1. Accounts Payable: Debit decreases, Credit increases (Normal Balance: Credit).

2. Advertising Expense: Debit increases, Credit decreases (Normal Balance: Debit).

3. Service Revenue: Debit decreases, Credit increases (Normal Balance: Credit).

4. Accounts Receivable: Debit increases, Credit decreases (Normal Balance: Debit).

5. Share Capital: Debit decreases, Credit increases (Normal Balance: Credit).

6. Dividends: Debit increases, Credit decreases (Normal Balance: Debit).

Q4. Journal Entries for Kaustav Sen Company:

June 1: Dr Cash EUR4,000, Cr Share Capital EUR4,000

June 2: Dr Equipment EUR900, Cr Accounts Payable EUR900

June 3: Dr Rent Expense EUR800, Cr Cash EUR800

June 12: Dr Accounts Receivable EUR300, Cr Service Revenue EUR300

Q5. Journal Entries for B. Madar SE:

Jan 2: Dr Cash EUR15,000, Cr Share Capital EUR15,000

Jan 3: Dr Car EUR7,000, Cr Cash EUR7,000

Jan 9: Dr Supplies EUR500, Cr Accounts Payable EUR500

Jan 11: Dr Accounts Receivable EUR1,800, Cr Service Revenue EUR1,800

Jan 16: Dr Advertising Expense EUR200, Cr Cash EUR200

Jan 20: Dr Cash EUR700, Cr Accounts Receivable EUR700

Jan 23: Dr Accounts Payable EUR300, Cr Cash EUR300


Jan 28: Dr Dividends EUR1,000, Cr Cash EUR1,000

Q6. Lena Fohn Accounting Transactions:

(a) Journalize transactions properly.

(b) Post to the ledger.

(c) Prepare a trial balance.

Q7. BYTE REPAIR SERVICE:

(a) Open T-accounts with balances.

(b) Record journal entries for January.

(c) Post entries.

(d) Prepare trial balance as of Jan 31, 2017.

This structured approach ensures accuracy in financial records.

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