Assignment: ACN $201$

Fall $2023$

Marks: $10$

Problem $1$:

The trial balance of Noah Amusement Park are as follows.

Noah Amusement Park

Trial Balance

January $1,2021$

$\backslash$table$[[$Account Title,$\backslash$table$[[$Account$],[$No$.]],\backslash$table$[[$Amount $($$$)],[$Dr$.]],\backslash$table$[[$Amount $($$$)],[$Cr$.]]],[$Cash$,101,15,900,],[$Accounts Receivable,$112,5,620,],[$Supplies$,130,1,050,],[$Prepaid Insurance,$142,2,400,],[$Land$,150,10,000,],[$Equipment$,158,50,000,],[$Mortgage Payable,$250,,30,000],[$Notes Payable,$220,,7,500],[$Accounts Payable,$201,,12,350],[$Unearned Service Revenue,$211,,4,500],[$Share Capital,$301,,20,000],[$Dividend$,312,600,],[$Retained Earnings,$320,,2,500],[$Service Revenue,$401,,13,620],[$Salaries and Wages Expense,$511,2,200,],[$Rent Expense,$521,2,700,],[$Total$,,90,470\_\_,90,470\_\_]]$

Page $1$ of $8$ During July following transactions were completed during the first quarter $-$

On March $31,$ after the first quarter, the company found the following information to remain unadjusted.

i$.$ The insurance policy is for $3$ years.

ii$.$ An inventory count on March $31$ shows that $$300$ supplies remained unused.

iii. The Equipment will provide benefits for $4$ years with $$2,000$ of salvage value.

iv$.$ Unearned rent of $$3,000$ was earned before March $31.$

v$.$ Services worth $$8,500$ were performed during the quarter but no bill has yet to be sent to the

customers.

vi$.$ The mortgage interest rate is $12\%$ per year. The mortgage was taken out on January $31.$

vii. March $31$ is Tuesday, and employees are paid on Thursday. Noah Amusement Park has ten

employees, who are paid $$500$ each for a $5-$day work week $($Friday and Saturday remain off

for the employees$).$ Requirements:

a$)$ Prepare Journal entries for the transactions $[$Assign accounts number to the newly created accounts$].$

b$)$ Prepare Ledger accounts $[$Do not forget about beginning balance$].$

c$)$ Prepare a trial balance.

d$)$ Prepare Adjusting entries for the first quarter of $2021$ for Noah Amusement Park.

e$)$ Prepare an adjusted trial balance for Noah Amusement Park on March $31,2021.$

Problem $2$:

The following account balances have been extracted from the accounting books of Ridge Corporation for the year ended December $31,2022.$

$\backslash$table$[[$Particulars$,$Amount $($$$)],[$Cash$,198,000],[$Marketable Securities,$57,000],[$Supplies$,25,000],[$Inventory$,17,800],[$Accounts Receivable,$22,850],[$Accounts Payable,$14,450],[$Notes Payable,$21,260],[12\%$ Mortgage Payable,$119,900],[$Bond Payable,$85,000],[$Investment $(30\%$ Short$-$term$),70,000],[$Unearned Service Revenue,$23,000],[$Building$,117,800],[$Machineries$,110,000],[$Office Equipment,$35,000],[$Accumulated Depreciation as on December $31,2022-,21,000],[$Building$,31,150],[$Office Equipment,$21,500],[$Machineries$,20,600],[$Accrued Salaries,$11,250],[$Share Capital $($$$15$ Par$),350,000],[$Retained Earnings,$99,330],[,]]$

Page $3$ of $8\backslash$table$[[$Utilities Expense,$12,250],[$Salaries Expense,$8,000],[$Advertisement$,9,700],[$Rent Expense,$19,800],[$Sales Commission,$5,590],[$Bad debts,$1,200],[$Income Tax Expense,$32,300],[$Interest Expense,$14,500],[$Interest Payable,$9,000],[$Investment Income,$7,500],[$Loss on sale of equipment,$2,000],[$Dividends Paid,$24,000],[$Purchase$,4,72,500],[$Purchase Return,$26,000],[$Sales Return,$9,440],[$Sales Discount,$5,660],[$Freight in$,11,750],[$Freight$-$out,$10,100],[$Sales$,9,00,000]]$

Requirements:

i$)$ Prepare the statement of comprehensive income of Ridge Corporation for the period ending December $31,2022[$Beginning inventory were $$12,000].$

ii$)$ Prepare a statement of changes in equity of Ridge Corporation for the period ending December $31,2022.$

iii$)$ Prepare a statement of the financial position of Ridge Corporation on December $31,2022.$

Page $4$ of $8$