HRM732 Individual Assignment #1 (40 Marks) 15% of the
Question # 00146311
Posted By:
Updated on: 12/05/2015 12:28 PM Due on: 01/04/2016
HRM732
Individual Assignment #1 (40 Marks) 15% of the overall grade for the course
Ron Abrams has come into your office for his weekly 1 on 1 in which you update him on your weekly progress on
your projects. He has arrived with a stack of paperwork in his hands and a befuddled look on his face. You ask
what’s going on and he responds as follows. “Last year, as you know, we purchased a bankrupt, closed down
bottling facility in The Ukraine. I don’t know if you know this but in countries other than Canada they are using
somewhat different accounting policies than we do, and the reports I have for the first few months of operations
for that location look nothing like anything I have seen before. I’m aware that the company made no money this
month as it’s had no sales or operations, but I cannot understand our capital position. I’m leaving you with a new
project. I know you’ve been learning accounting so I want you to take the opening information for the business
from the date of purchase and come up with the balance sheet as it should appear to me as a Canadian Reader.”
You are somewhat puzzled with this new challenge, yet flattered at the same time, and agree to take it on.
Given:
The newly purchased firm was bought on November 1. At inception the balance sheet accounts of the firm were as
follows:
Account Name
Accounts Payable
Accounts Receivable
Land
Building
Equipment
Cash
Notes Payable
$
85,000
67,000
490,000
320,000
175,000
2,200
60,000
Account Name
Bonds Payable (Over 1 Year)
Share Capital
Furniture and Fixtures
Wages Payable
Bottle Processing Patent Fee's Payable
Taxes Payable
Bottle Inventory
$
45,000
936,200
15,000
55,000
25,000
58,000
195,000
During the month of November the following transactions occurred:
Accounts Receivable for $16,000 was collected.
Wages due of $15,000 were paid out in cash.
$175,000 in Equipment was purchased on credit ($100 was due on delivery and was paid in cash).
Their land was appraised and found to be worth $560,000.
A stakeholder, Bruce Wayne, provided the company with equipment and in return received $65,000 in shares.
$300,000 in shares was retired for bonds payable on December 15, 2025.
Bottle Processing Patent Fees were paid completely out on Credit.
$175,000 in Old Bottles was returned to the former supplier for their cash value.
A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month.
Required:
Create a Balance Sheet for November 30th assuming no other transactions occurred for the month other than
those noted above.
1-Conversion to Canadian Balance Sheet and T-Accounts (17 marks)
2- Final Balance Sheet (23 Marks)
Individual Assignment #1 (40 Marks) 15% of the overall grade for the course
Ron Abrams has come into your office for his weekly 1 on 1 in which you update him on your weekly progress on
your projects. He has arrived with a stack of paperwork in his hands and a befuddled look on his face. You ask
what’s going on and he responds as follows. “Last year, as you know, we purchased a bankrupt, closed down
bottling facility in The Ukraine. I don’t know if you know this but in countries other than Canada they are using
somewhat different accounting policies than we do, and the reports I have for the first few months of operations
for that location look nothing like anything I have seen before. I’m aware that the company made no money this
month as it’s had no sales or operations, but I cannot understand our capital position. I’m leaving you with a new
project. I know you’ve been learning accounting so I want you to take the opening information for the business
from the date of purchase and come up with the balance sheet as it should appear to me as a Canadian Reader.”
You are somewhat puzzled with this new challenge, yet flattered at the same time, and agree to take it on.
Given:
The newly purchased firm was bought on November 1. At inception the balance sheet accounts of the firm were as
follows:
Account Name
Accounts Payable
Accounts Receivable
Land
Building
Equipment
Cash
Notes Payable
$
85,000
67,000
490,000
320,000
175,000
2,200
60,000
Account Name
Bonds Payable (Over 1 Year)
Share Capital
Furniture and Fixtures
Wages Payable
Bottle Processing Patent Fee's Payable
Taxes Payable
Bottle Inventory
$
45,000
936,200
15,000
55,000
25,000
58,000
195,000
During the month of November the following transactions occurred:
Accounts Receivable for $16,000 was collected.
Wages due of $15,000 were paid out in cash.
$175,000 in Equipment was purchased on credit ($100 was due on delivery and was paid in cash).
Their land was appraised and found to be worth $560,000.
A stakeholder, Bruce Wayne, provided the company with equipment and in return received $65,000 in shares.
$300,000 in shares was retired for bonds payable on December 15, 2025.
Bottle Processing Patent Fees were paid completely out on Credit.
$175,000 in Old Bottles was returned to the former supplier for their cash value.
A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month.
Required:
Create a Balance Sheet for November 30th assuming no other transactions occurred for the month other than
those noted above.
1-Conversion to Canadian Balance Sheet and T-Accounts (17 marks)
2- Final Balance Sheet (23 Marks)
Week 5 Individual Assignment Problem
Tips and Tricks:
The assignment question asks you to do one thing - create a balance sheet. However,
before you can do that one thing, there are a few extra steps you need to do to get there.
With this spreadsheet, I am trying to help you to lay it all out in order so that you can
work your way through the material to eventually get to the balance sheet.
1. The very first thing that I suggest is putting all of your balances into a trial balance.
Make sure that you have properly identified which accounts are debits and which are credits.
If you start out balanced, you have a better chance of ending up balanced! (see Opening balances sheet)
2. Once your opening trial balance balances, your next step is to set up all of your t-accounts with their
opening balances. Remember: debits on the left, credits on the right! (see t-accounts sheet)
3. You are now ready to record the transactions from the question into your general journal.
Please see my notes on the journal entry sheet for the kind of formatting that is required.
See your textbook for examples.
4. After you have completed your journal entries, transfer each debit and credit
recorded in your general journal to the t-accounts.
5. Once you have completely transferred every entry from your general
journal to the t-accounts, transfer the ending t-account balances to a new
trial balance. If you did everything correctly, debits should equal credits!
6. Once this new trial balance balances, you are ready to prepare your
balance sheet.
Marking Scheme:
Opening trial balance
Journal Entries
2
18
T-accounts/posting
10
Final Trial Balance
Balance Sheet
3
7
40
0
Grade out of 15%:
ü
0%
-
Ukraine Bottling Company
Opening balances
November 1, 20X1
Ukraine Bottling Company
Trial Balance
November 1, 20X1
Debit
Account Name
Accounts Payable
Accounts Receivable
Land
Building
$
85,000
67,000
490,000
320,000
Account Name
Bonds Payable (>1 year)
Share Capital
Furniture and Fixtures
Wages Payable
$
Tips and Tricks:
The assignment question asks you to do one thing - create a balance sheet. However,
before you can do that one thing, there are a few extra steps you need to do to get there.
With this spreadsheet, I am trying to help you to lay it all out in order so that you can
work your way through the material to eventually get to the balance sheet.
1. The very first thing that I suggest is putting all of your balances into a trial balance.
Make sure that you have properly identified which accounts are debits and which are credits.
If you start out balanced, you have a better chance of ending up balanced! (see Opening balances sheet)
2. Once your opening trial balance balances, your next step is to set up all of your t-accounts with their
opening balances. Remember: debits on the left, credits on the right! (see t-accounts sheet)
3. You are now ready to record the transactions from the question into your general journal.
Please see my notes on the journal entry sheet for the kind of formatting that is required.
See your textbook for examples.
4. After you have completed your journal entries, transfer each debit and credit
recorded in your general journal to the t-accounts.
5. Once you have completely transferred every entry from your general
journal to the t-accounts, transfer the ending t-account balances to a new
trial balance. If you did everything correctly, debits should equal credits!
6. Once this new trial balance balances, you are ready to prepare your
balance sheet.
Marking Scheme:
Opening trial balance
Journal Entries
2
18
T-accounts/posting
10
Final Trial Balance
Balance Sheet
3
7
40
0
Grade out of 15%:
ü
0%
-
Ukraine Bottling Company
Opening balances
November 1, 20X1
Ukraine Bottling Company
Trial Balance
November 1, 20X1
Debit
Account Name
Accounts Payable
Accounts Receivable
Land
Building
$
85,000
67,000
490,000
320,000
Account Name
Bonds Payable (>1 year)
Share Capital
Furniture and Fixtures
Wages Payable
$
45,000
936,200
15,000
55,000
Equipment
Cash
Notes Payable
175,000
2,200
60,000
Bottle Processing Patent Fee's
Payable
Taxes Payable
Bottle Inventory
Credit
25,000
58,000
195,000
Total
-
-
Once you have this trial balance in balance, you are ready to m
to setting up your t-accounts.
move on
T-accounts
Cash
100
Accounts Receivable
101
Bottle Inventory
102
1. Record all of your opening
Be careful to get your debits
2. After you have completed
debit and credit to the t-acco
As you transfer each number
This is a control to ensure tha
Be careful to get your debits
bal
-
bal
Furniture & Fixtures
bal
-
Land
bal
-
bal
104
200
Bonds Payable
bal
205
bal
bal
204
-
Share Capital
bal
201
Patents Fees Payable
206
-
-
bal
-
3. Once you have completely
journal to these t-accounts.
trial balance. If you did every
105
Wages Payable
203
Bank Loan Payable
-
Building
bal
Accounts Payable
202
-
bal
-
bal
-
Taxes Payable
Equipment
bal
106
Notes Payable
bal
103
-
As you enter amounts into yo
journal entry by recording th
300
-
ng balances in these t-accounts.
s on the left and credits on the right.
d your journal entries, transfer each
counts.
er, record the account number from the t-account into your general journal.
hat each number is transferred once and only once.
s on the left and credits on the right.
your t-accounts, reference back to your
he transaction number in the adjacent column
ely transferred every entry from your general
Transfer the ending balances to a new
erything correctly, debits should equal credits!
Date
General Journal
Account Titles and Explanation
PR
Page
Debit
1
Credit
A couple of formatting issues that we accountants
tend to get our shirts in a knot about:
Date:
Every entry needs a date. However, we don't like to
repeat the date each time.
See your textbooks for examples. Year is recorded
once at the top of the page and the month only when it changes
Order:
The debit entry(ies) is always listed first
Formatting No dollar signs on the figures.
Indent:
the credit entries are always slightly indented
from the debits. (On this spreadsheet, list your debits in column C,
credits in column D
Other:
Every entry requires a one line explanation after it.
Please leave a blank line between entries to make it easier to read
PR:
Posting Reference. This column is left blank until you post (transfer)
your entry to your t-accounts. Once you have recorded the transfer, you
write the account number in this column.
Account Names:
Balancing:
You may only use account names from your trial balance.
Don't make things up
For every journal entry, your debits must equal your credits. No onesided entries allowed!
Tips and Tricks:
In the place of a transaction date (which was not provided in the question), n
your transactions 1 through 9
3. Equipment: $100 of the $175,000 in equipment was paid upon receipt.
The balance will be paid later. Assume a formal Note was signed for the purch
6. When shares are "retired" we trade them in exchange for something. In ca
the shareholders gave us their shares and we gave them a bond (which we wi
pay out in 2025)
7. The wording is convoluted, but all we did was pay what we owed on the Pa
8. The old bottles were in inventory.
9. You will need a new account for the bank loan: Bank Loan Payable.
number
chase.
ase,
ill
atent Fees.
Ukraine Bottling Company
Trial Balance
November 30, 20X1
Debit
Cash
Accounts Receivable
Bottle Inventory
Equipment
Furniture and Fixtures
Building
Land
Accounts Payable
Wages Payable
Notes Payable
Bottle Processing Patent Fee's Payable
Taxes Payable
Bank Loan Payable
Bonds Payable (>1 year)
Share Capital
Total
Credit
Transfer the balances from your t-accounts to your trial balance.
Be careful to place your debit and credit balances in the correct columns.
Once your debits = your credits, you are finally ready to pull together your
balance sheet.
-
-
olumns.
her your
Ukraine Bottling Company
Balance Sheet
correct date and format here
Use your textbook as a guide for correct formatting
of the balance sheet.
Please pay particular attention to formatting your numbers - I need to see
dollar signs - but only where they belong - not on every number.
The easiest way to format your numbers is to click on the cell you need to
format then choose either the dollar sign icon or the ',' icon here
To get an underline, place your cursor where you want the underline, then click on this formatting box.
To get a double underline, click on the down arrow beside the formatting box and choose double underline.
936,200
15,000
55,000
Equipment
Cash
Notes Payable
175,000
2,200
60,000
Bottle Processing Patent Fee's
Payable
Taxes Payable
Bottle Inventory
Credit
25,000
58,000
195,000
Total
-
-
Once you have this trial balance in balance, you are ready to m
to setting up your t-accounts.
move on
T-accounts
Cash
100
Accounts Receivable
101
Bottle Inventory
102
1. Record all of your opening
Be careful to get your debits
2. After you have completed
debit and credit to the t-acco
As you transfer each number
This is a control to ensure tha
Be careful to get your debits
bal
-
bal
Furniture & Fixtures
bal
-
Land
bal
-
bal
104
200
Bonds Payable
bal
205
bal
bal
204
-
Share Capital
bal
201
Patents Fees Payable
206
-
-
bal
-
3. Once you have completely
journal to these t-accounts.
trial balance. If you did every
105
Wages Payable
203
Bank Loan Payable
-
Building
bal
Accounts Payable
202
-
bal
-
bal
-
Taxes Payable
Equipment
bal
106
Notes Payable
bal
103
-
As you enter amounts into yo
journal entry by recording th
300
-
ng balances in these t-accounts.
s on the left and credits on the right.
d your journal entries, transfer each
counts.
er, record the account number from the t-account into your general journal.
hat each number is transferred once and only once.
s on the left and credits on the right.
your t-accounts, reference back to your
he transaction number in the adjacent column
ely transferred every entry from your general
Transfer the ending balances to a new
erything correctly, debits should equal credits!
Date
General Journal
Account Titles and Explanation
PR
Page
Debit
1
Credit
A couple of formatting issues that we accountants
tend to get our shirts in a knot about:
Date:
Every entry needs a date. However, we don't like to
repeat the date each time.
See your textbooks for examples. Year is recorded
once at the top of the page and the month only when it changes
Order:
The debit entry(ies) is always listed first
Formatting No dollar signs on the figures.
Indent:
the credit entries are always slightly indented
from the debits. (On this spreadsheet, list your debits in column C,
credits in column D
Other:
Every entry requires a one line explanation after it.
Please leave a blank line between entries to make it easier to read
PR:
Posting Reference. This column is left blank until you post (transfer)
your entry to your t-accounts. Once you have recorded the transfer, you
write the account number in this column.
Account Names:
Balancing:
You may only use account names from your trial balance.
Don't make things up
For every journal entry, your debits must equal your credits. No onesided entries allowed!
Tips and Tricks:
In the place of a transaction date (which was not provided in the question), n
your transactions 1 through 9
3. Equipment: $100 of the $175,000 in equipment was paid upon receipt.
The balance will be paid later. Assume a formal Note was signed for the purch
6. When shares are "retired" we trade them in exchange for something. In ca
the shareholders gave us their shares and we gave them a bond (which we wi
pay out in 2025)
7. The wording is convoluted, but all we did was pay what we owed on the Pa
8. The old bottles were in inventory.
9. You will need a new account for the bank loan: Bank Loan Payable.
number
chase.
ase,
ill
atent Fees.
Ukraine Bottling Company
Trial Balance
November 30, 20X1
Debit
Cash
Accounts Receivable
Bottle Inventory
Equipment
Furniture and Fixtures
Building
Land
Accounts Payable
Wages Payable
Notes Payable
Bottle Processing Patent Fee's Payable
Taxes Payable
Bank Loan Payable
Bonds Payable (>1 year)
Share Capital
Total
Credit
Transfer the balances from your t-accounts to your trial balance.
Be careful to place your debit and credit balances in the correct columns.
Once your debits = your credits, you are finally ready to pull together your
balance sheet.
-
-
olumns.
her your
Ukraine Bottling Company
Balance Sheet
correct date and format here
Use your textbook as a guide for correct formatting
of the balance sheet.
Please pay particular attention to formatting your numbers - I need to see
dollar signs - but only where they belong - not on every number.
The easiest way to format your numbers is to click on the cell you need to
format then choose either the dollar sign icon or the ',' icon here
To get an underline, place your cursor where you want the underline, then click on this formatting box.
To get a double underline, click on the down arrow beside the formatting box and choose double underline.
-
Rating:
/5
Solution: HRM732 Individual Assignment #1 (40 Marks) 15% of the