| Practice | Prepare the Journal Entry, General Ledger, Trial Balance, Income Statement and Balance Sheet |
|---|---|
| Company | LLP Inc. for the Period Jan 2022 |
| 1-Jan-22 | Total 50,000 sold material as Revenue. Out of this 40,000 was Cash and 10,000 in account. |
| 10-Jan-22 | Purchased Material total 20,000. Out of this 15,000 paid in Cash and rest 5,000 in account. |
| 20-Jan-22 | Salary Paid 3,500 cash. |
| 30-Jan-22 | Outstanding Accounting Fee 1,000 |
| GENERAL LEDGER | |||
|---|---|---|---|
| Date | Particulars | DEBIT | CREDIT |
| LLP INC. | |||
|---|---|---|---|
| TRIAL BALANCE | |||
| (unaudited) | |||
| For the period ended Jan 31, 2022 | |||
| 2022 | |||
| PARTICULARS | CODE | DR | CR |
| Revenue | 8000 | ||
| Machinery & Equipment | |||
| Accounts Payable | |||
| Accounts Receivable | |||
| Cash | |||
| Purchases/ Cost of Material | 8320 | ||
| Worker’s Comp Premiums – Labour | 8340 | ||
| Sub-Contract | |||
| Advertising and Promotion | |||
| Insurance | 8690 | ||
| Bank charges | 8715 | ||
| Credit card charges | 8716 | ||
| Legal fees | 8861 | ||
| Accounting fees | 8862 | ||
| Consulting fees | 8863 | ||
| Brokerage fees | 8869 | ||
| Occupancy cost – Office in Home Exp | 8912 | ||
| Repairs and maintenance | 8960 | ||
| Repairs and maintenance-vehicles | 8962 | ||
| Salaries and wages | 9060 | ||
| TOTAL: | – | – |
| LLP INC. | |||||
|---|---|---|---|---|---|
| INCOME STATEMENT | |||||
| (unaudited) | |||||
For the period ended Jan 31, 2022 Cost of Goods Sold | 8000 | ||||
| Revenue: | Trade Sales of Goods and Services
| ||||
| Purchases/ Cost of Material | 8320 | ||||
| Direct wages – WCB | 8340 | ||||
| Trades and Sub-contracts | 8360 | ||||
| Total COGS | 8518 | ||||
| Gross Profit | 8519 | ||||
| Operating Expenses: | |||||
| Advertising and Promotion | 8520 | ||||
| Meals and entertainment | 8523 | ||||
| Amortization of tangible assets | 8670 | ||||
| Insurance | 8690 | ||||
| Interest and bank charges | 8710 | ||||
| Bank charges | 8715 | ||||
| Credit card charges | 8716 | ||||
| Business taxes, licenses and membership | 8760 | ||||
| Office expenses | 8810 | ||||
| Office stationery & supplies | 8811 | ||||
| Professional fees | 8860 | ||||
| Legal fees | 8861 | ||||
| Accounting fees | 8862 | ||||
| Consulting fees | 8863 | ||||
| Brokerage fees | 8869 | ||||
| Occupancy cost – Office in Home Exp | 8912 | ||||
| Repairs and maintenance | 8960 | ||||
| Repairs and maintenance-vehicles | 8962 | ||||
| Salaries and wages | 9060 | ||||
| Commissions (Referral Fee) | 9061 | ||||
| Supplies | 9130 | ||||
| Small tools | 9131 | ||||
| Computer-related expenses | 9150 | ||||
| Internet | 9152 | ||||
| Travel expenses | 9200 | ||||
| Fuel Cost | 9224 | ||||
| Telephone & telecommunications | 9225 | ||||
| Other expenses | 9270 | ||||
| Vehicle expenses | 9281 | ||||
| General & addministrative expenses | 9284 | ||||
| Total Expense | 9367 | ||||
| Net Income/loss (Before Tax) | 9970 | ||||
| Current Income Tax – Fed | 9990 | ||||
| Current Income Tax – Prov | 9990 | – | |||
| Net Income (After Tax) | 9999 | – | |||
| Approved by director. | |||||
| LLP INC. | ||||||
|---|---|---|---|---|---|---|
| BALANCE SHEET | ||||||
| (unaudited) | ||||||
| As of Jan 31, 2022 | ||||||
| CODE | 2022 | 2021 | ||||
| Current Assets | ||||||
| Cash and deposits | 1000 | |||||
| Accounts Receivable | 1060 | |||||
| Due from Shareholders | 1300 | |||||
| Total Current Assets | ||||||
| Fixed Assets | ||||||
| Machinery, equipment, furniture and fixtures | 1740 | |||||
| Accum – amortization of machinery | 1741 | |||||
| Automobile | 1742 | |||||
| Accum – Automobile | 1743 | |||||
| Total Fixed Assets | ||||||
| Total Assets | 2599 | |||||
| Current Liabilities | ||||||
| Amounts Payble & Accrued Liab. | 2620 | |||||
| Trade Payable | 2621 | |||||
| Taxes Payable – Federel | 2680 | |||||
| Taxes Payable – Provincial | 2680 | |||||
| Due to shareholder(s)/director(s) – current amounts | 2780 | |||||
| Short term debt – Credit Card | ||||||
| Total Liabilities | 3499 | |||||
| Equity | ||||||
| Common share | 3500 | |||||
| Preferred share | ||||||
| Retained earnings/deficit | 3600 | |||||
| Total Equity | 3620 | |||||
| Total Liabilities & Equity | ||||||
| Retained earnings. | ||||||
| Retained earnings/deficit – start. | 3660 | |||||
| Net Income / loss | 3680 | |||||
| Cash dividends | 3701 | |||||
| Total retained earnings | 3849 |
| ||||
| Approved by director. | ||||||
It’s just a practice from the chapter exercises, its not an exam>>.
