Shehgarlynn Mini Mart

The following are the daily business transaction of Shehgarlynn Mini Mart:

January 1, 2013  bought $6,500 of merchandise on account, terms 3/10, 2/15, n/30, from Yosores Company,

January 3, 2013 Sales on credit to Gary Co. amounted to $3,750, terms 2/10, n/30.

January 10, 2013 Gary Co. return of $570.00 on goods sold on Jan. 3, 2013

January 14, 2013 Received a cash from Gary Co. in payment of the goods sold on Jan. 3.

January 15, 2013 Sent a check # 025, amounting  to Yosores Co. in payment of purchase made on January 1,

January 18, 2013 Purchased merchandise on credit to Shehlynn Co. for $8,500, terms 3/10, 2/15, n/30.
                                     
January 25, 2013 Some items purchased from Shehlynn Co. are returned amounted $950 in goods purchased on January 18.

January 29, 2013 Paid for freight charges on purchase of Jan. 1. amounting $250.
                                     
January 31, 2013 Paid to Shehlynn Co., the total amount in payment of purchase made on January 18.

Prepare the Net Income of Shehgarlynn Mini Mart

Test IV - Prepare a Post-Closing Trial Balance

Shehla Shehgarlynn operates a repair service, known as Shehgarlynn Repair Service.
The following are the accounts of Shehgarlynn for the month of December 2012 of operations:

Cash in Bank ...............$13,140
Supplies.............................500
Prepaid Rent ..................6,000
Prepaid Insurance...........1,200
Accounts Receivable..........250
Repair Equipment...........5,000
Shehla, Capital..............20,000
Shehla, Drawing.................120
Repair Fees Earned.......11,000
Accounts Payable...........1,000
Advertising Expense .........500
Salaries Expense............5,000

Shehgarlynn accounting records are kept on accrual basis. At the end of December prepare the following adjustment needed:

1. Insurance has been used from Jan. to Dec., $100 per month.
2. Rent of the office has been used from Jan. to Dec., $500 per month
3. $250 of supplies has been used from Jan. to Dec. 

After closing all temporary capital accounts prepare a Post-Closing Trial Balance.

Test II - Closing Entries

Shehla Shehgarlynn operates a repair service, known as Shehgarlynn Repair Service.
The following are the accounts of Shehgarlynn for the month of December 2012 of operations:

Cash in Bank ...............$13,140
Supplies.............................500
Prepaid Rent ..................6,000
Prepaid Insurance...........1,200
Accounts Receivable..........250
Repair Equipment...........5,000
Shehla, Capital..............20,000
Shehla, Drawing.................120
Repair Fees Earned.......11,000
Accounts Payable...........1,000
Advertising Expense .........500
Salaries Expense............5,000

Shehgarlynn accounting records are kept on accrual basis. At the end of December prepare the following adjustment needed:

1. Insurance has been used from Jan. to Dec., $100 per month.
2. Rent of the office has been used from Jan. to Dec., $500 per month
3. $250 of supplies has been used from Jan. to Dec. 

After preparing the adjusting entries, prepare trial balance, financial statement, and close all temporary capital accounts.

Test I - Adjusting Entries

Shehla Shehgarlynn operates a repair service, known as Shehgarlynn Repair Service.
The following are the accounts of Shehgarlynn for the month of December 2012 of operations:

Cash in Bank ...............$13,140
Supplies.............................500
Prepaid Rent ..................6,000
Prepaid Insurance...........1,200
Accounts Receivable..........250
Repair Equipment...........5,000
Shehla, Capital..............20,000
Shehla, Drawing.................120
Repair Fees Earned.......11,000
Accounts Payable...........1,000
Advertising Expense .........500
Salaries Expense............5,000

Shehgarlynn accounting records are kept on accrual basis. At the end of December prepare the following adjustment needed:

1. Insurance has been used from Jan. to Dec., $100 per month.
2. Rent of the office has been used from Jan. to Dec., $500 per month
3. $250 of supplies has been used from Jan. to Dec. 

Test II - Closing Entries

Indicate whether each of the following accounts should be closed at year-end by writing YES or NO in the answer column.
                                                                           Answer

1. Service Revenue                                _______
2. Shehla, Capital                                    _______
3. Shehla, Drawing                                 _______
4. Supplies Expense                              _______
5. Prepaid Expense                               _______
6. Accumulated Depreciation           _______
7. Accounts Payable                             _______
8. Wages Payable                                  _______
9. Wages and Salaries Expense        _______
10. Supplies                                                 _______
11. Prepaid Insurance                            _______
12. Accounts Receivable                       _______
13. Depreciation Expense                     _______
14. Unearned Revenue                          _______
15. Interest Income                                _______
16. Office Equipment                             _______
17. Computer                                            _______
18. Water and Power Payable           _______
19. Notes Payable                                   _______
20. Prepaid Rent                                      _______

Test VII - Final Exam

Shehla Shehgarlynn operates a taxi company known as the Shehgarlynn's Taxi Co. The beginning balance of her accounts as of January 1, 2013 as follows:

Cash.....................................$76,500
Supplies .....................................800
Automobile ...........................15,000
Accounts Payable..................33,000
Capital...................................10,500

The transactions of the firm during the month of January appear below:

1. Paid balance owed to the creditor.
2. Income (cash) for the month, $8,500
3. Paid wages for the month, $2,100
4. Paid for advertising, $150
5. Purchased an additional used taxi for $7,500, terms half in cash and the balance on account.
6. Paid $475 for maintenance of automobiles.
7. Sold $150 of our supplies at cost as an accommodation.
8. Shehla withdrew $950 for personal use. 
9. Inventory of supplies at the end of the month was $425 (used).

Prepare the following:

1. Journal Entries
2. General Ledger
3. Trial Balance
4. Financial Statement

Test VI - Balance Sheet

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.

January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.

After  preparing statement of owner's equity, prepare the Balance Sheet.

Test V - Statement of Owner's Equity

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.

January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.

After  preparing the income statement, prepare the Statement of Owner's Equity

Test IV - Income Statement

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.

January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.

After  preparing the trial balance, prepare the Income Statement.

Test III - Trial Balance

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.


January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.



After posting the account to each debit or credit ledger account. Prepare the Trial Balance.

Test II - Posting to the Ledger

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.


January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.

After preparing the Journal entry, prepare the ledger or T-Account, post each account to each debit or credit ledger account.

Test I - Journalizing

The following are the transactions of Shehgarlynn Repair Service. Journalize the following transactions in proper form. The chart of accounts includes: Cash and Bank; Prepaid Rent; Supplies; Repair  Equipment; Accounts Payable; Accounts Receivable; Shehla, Capital; Shehla, Withdrawal; Repair Fees Earned; Salaries Expense; Advertising Expense; and Supplies Expense.

January 1, 2013, Shehla invested $15,000 cash and $5,000 of repair equipment in the business. (The cash deposit to Bank of America checking account No.0013447)

January 1, 2013, Paid twelve (12) month's rent in advance, $500 per month. check no. 001

January 5, 2013, Bought repair supplies from Arden Co. on account, amounting of $500. (These  supplies have not yet been consumed or used up).

January 10, 2013, Perform repair work, received $750 cash, and had to bill Gary Co. for remaining  balance of $250. (cash was deposited to the Bank of America)

January 18, 2013, Shehla paid her home telephone bill, amounting of $120, check no. 002

January 20, 2013, Advertising bill for $500 from Jerry Co. received but payment not due yet.   (advertising has already appeared in the newspaper).

January 24, 2013, Paid salary to Shehla as a manager of the company, amounting of $5,000, check no. 003

January 30, 2013, Paid insurance for 1 year in advance, $100 per month. check no. 004.

Prepare the Journal Entry.

Trial Balance

The following are the account of Shehgarlynn Law firm for the first quarter of business operation:

Cash ....................................$1,000
Checking Account................24,150
Supplies.....................................650
Prepaid Rent...........................4,800
Office Furniture......................3,500
Office Equipment...................4,000
Accounts Payable....................1,950
Unearned Revenue...............10,000
Shehgarlynn, Capital.............21,500
Shehgarlynn, Drawing............... 800
Consulting Fees ......................8,900
Rent Expense............................400
Advertising Expense..................200
Supplies Expense ...................2,100
Utilities Expense.......................400
Miscellaneous Expense..............350

Prepare the following:

1. Trial Balance
2. Income Statement
3. Statement of Owner's Equity
4. Balance Sheet (Report Form)

Test I - Types of Assets

A. Prepare a list of (10) ten assets that a business organization would own.

1. ____________________
2. ____________________
3. ____________________
4. ____________________
5. ____________________
6. ____________________
7. ____________________
8. ____________________
9. ____________________
10. ____________________

B. Test your ability to assign specific assets to various categories.Below are (20) twenty specific assets:

1. Adding Machine                                    2. Truck

3. Petty Cash                                               4. Desk

5. Cash in Bank                                           6. Chairs

7. Typing Paper                                         8. Computer

9. Automobile                                          10. Pencils

11.Traveler's Check                               12. Pens

13. Currency                                             14. Light Bulbs

15. USB                                                       16. Typewriter

17 Printer Ink                                           18. Printer

19. Ribbon of the typewriter              20. Fax Machine

Place each of these assets under appropriate specific asset category heading in the following form:

Cash         Furniture & Fixture   Delivery Equipt     Office Supplies   Office Equipt
_______   ___________   ___________     ____________  _____________
_______   ___________    ___________    ____________  _____________
_______   ___________   ____________   ____________  _____________
_______   ___________   ____________   ____________  _____________
_______   ___________   ____________   ____________  _____________
_______   ___________   ____________   ____________  _____________

Test VI Effects of Debits and Credits in Transactions

On the lines provided, indicate with a " + " (for Increase) or a " - "  (for Decrease), the effect the debit or credit has on each account.

Example: The business received cash from a customer paying on their account.
Answer:     Account                                                          Debit             Credit
           Cash............................................................  +      
               Account Receivable....................................................     -   

1). The owner paid cash for some supplies.
          Supplies ......................................................_____
             Cash ........................................................................._____

2). The owner returned some equipment for credit.
          Accounts Payable ....................................._____
              Equipment ............................................................  _____

3). The owner invested some personal cash in the business.
          Cash ..................................................... _____
              Capital ................................................................._____

4). The owner withdrew cash from the business for personal use.
          Drawing ..............................................   _____
              Cash .................................................................    _____

5). The owner performed services for a customer, payment to be received next month.
          Accounts Receivable ............................   _____
              Fees Earned ....................................................    _____

6). The owner pays salary for the staff.
          Salaries Expense  ...................................  _____
              Cash .............................................................       _____

7). The owner makes cash withdrawal.
          Withdrawal .........................................   _____
              Cash  ..............................................................     _____

8). The owner paid the telephone bill.
          Telephone or utilities Expense................. _____
              Cash ...............................................................      _____

9). The owner paid to a creditor.
          Accounts Payable  .................................  _____
              Cash  ...........................................................        _____

10. The owner pays rent for office space.
          Rent Expense .........................................  _____
              Cash  ...........................................................         _____

Test V Analyzing the Transaction

Analyze the following transactions to determine which accounts are involved, whether they will be increased or decreased, and in which account group they will belong, use the expanded accounting equation:
Assets = Liabilities + Owner's Equity - Drawing + Revenue - Expenses

Note: Use a (+) for increase and a (-) for decrease.

Example: The owner invested in his business.

Answer : + Assets (Cash)                + Owner's Equity (Capital)

1. Bought new equipment on account.
2. Received cash for services rendered.
3. The business performed services on account.
4. Withdrew cash for personal use.
5. Paid secretary salary.
6. Paid for supplies purchased.
7. Billed customers for services rendered.
8. Received payment from a customer paying on his account.
9. The supplies were used up. Record them as an expense now.
10. Borrowed money from the bank
11. Purchased on account (charged) some office equipment.
12. Paid for utilities expense.
13. Paid the bank the money we previously borrowed.
14. Paid the telephone bill that just came in.
15. Made a partial payment to a creditor.
16. Took cash out of the business to pay for a personal bill.
17. Recorded revenue earned, but not collected yet.
18. Recorded expenses incurred, but not collected yet.
19.Received cash for the return of same equipment that was defective.
20. Received payment from an Account Receivable.

Test IV Classify the Normal balance, Decrease, and Increase account.

 Fill in the blank enter D = Debit  or  C = Credit 
A. What is the Normal Balance for the following accounts?
_____ 1. Rent Expense                          _____ 11. Land
_____ 2. Capital                                       _____ 12. Drawing
_____ 3. Interest Payable                    _____ 13. Property Taxes Payable
_____ 4. Fees Earned                            _____ 14. Interest Receivable
_____ 5. Notes Payable                        _____ 15. Accounts Payable
_____ 6. Unearned Income                 _____ 16. Equipment
_____ 7. Office Furniture                     _____ 17. Prepaid Insurance
_____ 8. Advertising Expense            _____ 18. Utilities Expense
_____ 9. Wages Payable                       _____ 19. Admissions Income
_____10. Film Rental Expense          _____ 20. Additional Investment

B. What would it take to Decrease the following accounts?

_____ 21. Cash                                        _____ 26. Capital
_____ 22. Wages Payable                   _____ 27. Subscription Revenue
_____ 23. Building                                 _____ 28. Interest Income
_____ 24. Drawing                                _____ 29. Accounts Receivable
_____ 25. Office Equipment              _____ 30. Office Supplies Expense  

C. What would it take to Increase the following accounts?

_____ 31. Capital                                  _____ 36. Supplies
_____ 32. Petty Cash                           _____ 37. Drawing
_____ 33. Salaries Payable                _____ 38. Rent Expense
_____ 34. Rent Income                      _____ 39. Office Equipment
_____ 35. Taxes Payable                   _____ 40. Notes Payable

Test VII Classify the Account

Classify each of the following as element of the accounting equation using the following abbreviations:
A = Assets; L = Liabilities; OE = Owner's Equity; R = Revenue; E = Expenses
Example:    R     Income (form services). answer - Revenue

_____ 1. Accounts Receivable               _____ 11. Supplies
_____ 2. Capital                                           _____ 12. Accounts Payable
_____ 3. Salaries Payable                        _____ 13. Drawing
_____ 4. Prepaid Rent                              _____ 14. Building
_____ 5. Cash                                               _____ 15. Notes Payable
_____ 6. Equipment                                  _____ 16. Interest Payable
_____ 7. Unearned Revenue                 _____ 17. Taxes Payable
_____ 8. Land                                              _____ 18. Rent Income
_____ 9. Rent Expense                            _____ 19. Telephone Bills
_____10. Salaries Expense                    _____ 20. Interest Receivable    

Test III Types of Assets

From the following list of items, indicate by checking the appropriate box which items are or not assets, and write what type of assets are they?

      Item                                             Yes         No                            Types of Assets

Examples
Log book                                                  /            ______                       Office Supplies

1. Automobile                          _____          _____                      ______________
2. Apartment (rented)           _____         _____                     ______________
3. Table                                      _____         _____                      ______________
4. Typewriter                          _____         _____                      ______________
5. Shopping list                       _____         _____                      ______________
6. Money                                   _____         _____                      ______________
7. Cash in Bank                          ____         _____                       ______________
8. Pens                                       _____        _____                       _______________
9. Truck                                     _____        _____                       _______________
10. Computer                             _____       _____                       _______________
11. Stationery                             _____       _____                       _______________
12. Coins                                      _____       _____                        _______________
13. Light bulbs                            ____       _____                        _______________
14. Adding Machine                 ____        _____                       _______________
15. Software Program              _____       _____                      _______________
16. Pencils                                     _____      _____                      _______________
17. Petty Cash                                _____     _____                      _______________
18. Car                                           _____     ______                      _______________
19. Building  (office)                   _____     ______                      _______________
20. Printer                                     ______    ______                       _______________                     

Test II Accounting Theory

A.  Answer the following blank provided:

1. The accounting equation is_______________ = _____________  +  ________________
2. Items owned by a business that have money value are known as _____________________
3. _____________ The process of recording the transactions in term of money.
4. Money owed to an outsider is a ____________________
5. The difference between assets and liabilities is ___________________
6. An investment in the business increases _________________ and ___________________
7. To purchase "on account" is to create a  _______________________
8. When the word "paid" occurs, it means a deduction of _______________
9. Income increases net assets and also __________________________
10. A withdrawal of cash reduces cash and _____________________

B. Differentiate between Accountant, and Bookkeeper

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C. What is Revenue, Expenses, and Profit? Explain in your own understanding.

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D. Explain between Capital, and Withdrawal? Liabilities VS Assets?
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