FIN621 Financial Statement Analysis Assignment No. 01 Solution Fall 2014

[education-2014]

FIN621 Financial Statement Analysis Assignment No. 01 Discussion and Solution Fall 2014 Last Date 1st December 2014





Question # 1:



Life insurance agency was organized on September 01, 2013. Assume that the accounts are closed and financial statements prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life of 5 years from date of acquisition, September 01, 2013. The trial balance for Life insurance agency at November 30, 2013 is shown below.



LIFE INSURANCE AGENCY

TRIAL BALANCE


[B]NOVEMBER 30, 2013

[B]Particulars[/B]	[B]Debit[/B]	[B]Credit[/B]
	[B]Rs.[/B]	[B]Rs.[/B]
Cash	6,565
Account receivable	17,050
Office supplies	500
Office equipment	18,000
Accumulated Depreciation: Office equipment		600

[/B]

[B]Accounts payable		1,260
Capital		35,000
Drawing	2,500
Commission earned		15,555
Advertising expense	1,400
Salaries expense	2,600
Rent expense	3,800
[B]Total[/B]	[B]52,415[/B]	[B]52,415[/B]
Life Insurance Agency estimated that only about Rs.300 worth of office supplies remained on hand at November 30, 2013. You are required to: a. Prepare adjusting entries at November 30, 2013 to reflect the office supplies used in November and depreciation expense for the month. (2 Marks) b. Prepare an adjusted trial balance at November 30, 2013. (2 Marks) c. Prepare Income Statement and balance sheet at November 30, 2013. (3 + 2 Marks) Question: 2 What is purpose of making period-end adjusting entries? (1 Marks) NOTE: Complete calculations are required for every part of the problem. Incomplete calculations will result in loss of marks. IMPORTANT: 24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. OTHER IMPORTANT INSTRUCTIONS: DEADLINE: Make sure to upload the solution file before the due date on VULMS. Any submission made via email after the due date will not be accepted. FORMATTING GUIDELINES: Use the font style “Times New Roman” or “Arial” and font size “12”. It is advised to compose your document in MS-Word format. You may also compose your assignment in Open Office format. Use black and blue font colors only.

[/B]

[Vuhelper]

please share with me your balance sheet total.any one of you done this?