Accounting- Due Date: To be submitted at the start of class on Tuesday 6th October

| January 30, 2017

Question
ACCT 100, Fall Semester 2015-2016
Due Date: To be submitted at the start of class on Tuesday 6th October,
2015
Assignment 1
Showcase Cinema adjusts its accounts every month. Below is the company’s
unadjusted trial balance dated August 31, 2009.
Additional information is also provided below for use in preparing the company’s
adjusting entries for the month of August. (Note that adjusting entries have
already been made for the first seven months of 2009, but not for the month of
August.)

SHOWCASE CINEMA
UNADJUSTED TRIAL BALANCE
AUGUST 31, 2009

Additional Items

1. Film rental expense for the month is $15,200. However, the film rental
expense for several months has been paid in advance.
2. The building is being depreciated over a period of 20 years (240 months).
3. The fixtures and equipment are being depreciated over a period of five years
(60 months).
4. On the first of each month, the Cinema pays the interest that accrued in the
prior month on its note payable. At August 31, accrued interest payable on
this note amounted to $1,500.
5. The Cinema allows the local YMCA to bring children attending summer
camp to the movies on any weekday afternoon for a fixed fee of $500 per
month. On June 28, the YMCA made a $1,500 advance payment covering the
months of July, August, and September.
6. The Cinema receives a percentage of the revenue earned by Dixie Corp, the
concessionaire operating the snack bar. For snack bar sales in August, Dixie
owes Showcase $2,250, payable on September 10. No entry has yet been made
to record this revenue. (Credit: Concessions Revenue.)
7. Salaries earned by employees, but not recorded or paid as of August 31, amount
to $1,700. No entry has yet been made to record this liability and expense.
8. Income taxes expense for August is estimated at $4,200. This amount will be
paid in the November 15 installment payment.
9. Utilities expense is recorded as monthly bills are received. No adjusting
entries for utilities expense are made at month-end.

Instructions
a. Prepare T-accounts with the balances from the unadjusted trial balance.
b. Update the T accounts by posting the adjusting entries 1 through to 9
(including an explanation) and update the account balances.
c. Prepare the adjusted trial balance for the period ended August 31, 2009
(Note: You should use the format given in Exhibit 3.13, page 106 of your
course packs i.e. begin with the unadjusted TB, show the adjustments and
then the resulting adjusted TB).
d. Refer to the balances shown in the unadjusted trial balance at August 31. How
many months of expense are included in each of the following account
balances? (Remember, Showcase Cinema adjusts its accounts monthly. Thus,
the accounts shown were last adjusted on July 31, 2009.)
1. Utilities Expense
2. Depreciation Expense
3. Accumulated Depreciation: Building

Question 2
The adjusted trial balance for Sharp Construction as of December 31, 2012
follows:-

No.
101
104
126
128
167
168
173
174
183
201
203
208
210
213
233
251
301
302
401
406
407
409
606
612
623
633
637
640
652
682
683
684
688
690

Sharp Construction
Adjusted Trial Balance
December 31, 2012
Account Title
Cash
Short-term investments
Supplies
Prepared Insurance
Equipment
Accumulated depreciation –Equipment
Building
Accumulated depreciation –Building
Land
Accounts payable
Interest payable
Rent payable
Wages payable
Property taxes payable
Unearned Professional Fees
Long term notes payable
J. Sharp Capital
J. Sharp withdrawals
Professional fees earned
Rent earned
Dividends earned
Interest earned
Depreciation expense –Building
Depreciation expense –Equipment
Wages expense
Interest expense
Insurance expense
Rent expense
Supplies expense
Postage expense
Property tax expense
Repairs expense
Telephone expense
Utilities expense
Totals

Debit
$ 4, 000
22,000
7,100
6,000
39,000

Credit

$20,000
130,000
55,000
45,000
15,500
1,500
2,500
1,500
800
6,500
66,000
82,700
12,000
96,000
13,000
1,900
1,000
10,000
5,000
31,000
4,100
9,000
12,400
6,400
3,200
4,000
7,900
2,200
3,600
$363,900

$363,900

J. Sharp invested $50,000 cash in the business during year 2012 (the December
31, 2011, credit balance of the J. Sharp, Capital account was $32,700). Sharp
Construction is required to make a $ 6,600 payment on its long term notes
payable during 2013.

Instructions
1. Prepare the income statement and the statement of owner’s equity for the
calendar year 2012 and the classified balance sheet at December 31,
2012.
2. Prepare the necessary closing entries at December 31, 2012.
3. Use the information in the financial statements to compute these ratios:
(a) return on assets (total assets at December 31, 2012 was $ 200,000).
(b) debt ratio, (c) profit margin ratio (use total revenues as the
denominator) and (d) current ratio.

Get a 30 % discount on an order above $ 50
Use the following coupon code:
COCONUT
Order your essay today and save 30% with the discount code: COCONUTOrder Now
Positive SSL