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Financial Accounting Worksheet Tasks

The document outlines a financial accounting tutorial for SoSe 2024, focusing on preparing financial statements. It includes tasks such as extending adjusted trial balance accounts, preparing closing entries, correcting errors, and journalizing adjustments for a company. Additionally, it requires the preparation of income statements, owner's equity statements, and post-closing trial balances.

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8 views3 pages

Financial Accounting Worksheet Tasks

The document outlines a financial accounting tutorial for SoSe 2024, focusing on preparing financial statements. It includes tasks such as extending adjusted trial balance accounts, preparing closing entries, correcting errors, and journalizing adjustments for a company. Additionally, it requires the preparation of income statements, owner's equity statements, and post-closing trial balances.

Uploaded by

gildartson
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

Financial Accounting | SoSe 2024

Prof. Dr. Christoph Sextroh

Financial Accounting
Tutorial 2
Preparing financial statements

Task 1:
Susan Elbe is preparing a worksheet. Explain to Susan how she should extend the following
adjusted trial balance accounts to the financial statement columns of the worksheet.
1. Cash _______________________
2. Owner’s Drawings _______________________
3. Accumulated Depreciation _______________________
4. Service Revenue _______________________
5. Accounts Payable _______________________
6. Salaries and Wages Expense _______________________

Task 2:
Hancock Heating has the following balances in selected accounts of its adjusted trial balance.
Accounts Payable 27,000
Owner’s Drawings 15,000
Service Revenue 98,000
Owner’s Capital 42,000
Rent Expense 22,000
Accounts Receivable 38,000
Salaries and Wages Expense 51,000
Supplies 7,000
Prepare the closing entries at December 31.

Task 3:
Sanchez Company discovered the following errors made in January 2020 (amounts in
thousands).
1. A payment of Salaries and Wages Expense of INR600 was debited to Supplies and
credited to Cash, both for INR600.
2. A collection of INR3,000 from a client on account was debited to Cash INR200 and
credited to Service Revenue INR200.
3. The purchase of supplies on account for INR860 was debited to Supplies INR680 and
credited to Accounts Payable INR680.

Correct the errors without reversing the incorrect entry.

1
Financial Accounting | SoSe 2024
Prof. Dr. Christoph Sextroh

Task 4:
Badger Motel, Ltd. opened for business on May 1, 2020. Its trial balance before adjustments
on May 31 is as follows:

Other data:
a) Prepaid Insurance is a 1-year policy starting May 1, 2020.
b) A count of supplies shows €350 of unused supplies on May 31.
c) Annual depreciation is €2,640 on the building and €1,500 on equipment.
d) The mortgage interest rate is 12%. (The mortgage was taken out on May 1)
e) Two-thirds of the unearned rent revenue should be recognized as rent revenue prior
f) to May 31.
g) Salaries of €750 are accrued and unpaid at May 31.

Required:
1. Journalize the adjusting entries on May 31.
2. Prepare an income statement and an owner’s equity statement for the month of May
and a statement of financial position at May 31.
3. Prepare closing entries.
4. Prepare the post-closing trial balance.
5. Prepare the worksheet for the accounting period (see last page).

2
Financial Accounting | SoSe 2024
Prof. Dr. Christoph Sextroh

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