Classification: Protected A
Assignment 2A: Stratford House
In Assignment 1, transactions for
Stratford House
were entered into the General Journal,
amounts were posted into the general ledger of accounts, and an unadjusted trial balance was
prepared. Assignment 2 continues the accounting work for the organization,
Stratford House
A description of
Stratford House
, and their chart of accounts, is repeated below.
Stratford House
is a non-profit organization that operates an emergency shelter for women and their children
in Vancouver.
Stratford House
earns fee income by providing presentations and information sessions on
domestic abuse at workplaces, in schools and for other groups. In addition, the organization also receives
government grants and generates some fundraising income each year.
Stratford House
was incorporated
with help from a wealthy private citizen and is governed by a volunteer board. The organization started
operations on
July 1
2015
.
Stratford House: Chart of Accounts
Assets
Income
101
Cash
401
Fee Income
102
Accounts Receivable – Fees
402
Donations/Pledges Income
103
Accounts Receivable – Donations
403
Government Grant Income
104
Accounts Receivable – Grants
105
Equipment/Furniture
Expenses
106
Accumulated Depreciation –
Equip/Furn
501
Wages Expense
107
Vehicle
502
Rent Expense
108
Accumulated Depreciation – Vehicle
503
Utilities Expense
109
Prepaid Rent
504
Supplies Expense
110
Prepaid Insurance
505
Insurance Expense
111
Supplies
506
Vehicle Expense
507
Depreciation Expense –
Equip/Furn.
Liabilities
508
Depreciation Expense – Vehicle
201
Accounts Payable
509
Bad Debt Expense
202
Wages Payable
510
Tax Expense
203
Taxes Payable
204
Unearned Income
Equity
301
Retained Earnings
302
Withdrawals
Stratford House
is required to prepare financial statements on
September 30
The following information is known on
September 30
2015
:
Classification: Protected A
Adjustment #1
August 31
The value of supplies on hand is
$2,444
Adjustment #2
August 31
Stratford House
uses the straight-line depreciation method.
The vehicle is expected to have a useful life of
8
years,
with a residual value of
$1,850
.
Adjustment #3
August 31
The furniture and equipment is expected to have a useful life
of
15
years with no residual value.
Adjustment #4
August 31
The three months of prepaid rent expired on
August 31
Adjustment #5
August 31
The three months of prepaid insurance expired on
August 31
Instructions:
Prepare adjusting entries to reflect the above information. Post the adjusting entries to the general ledger.
Prepare an adjusted trial balance as at
September 30
2015
. In addition, please prepare the
following statements for
Stratford House
:
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Financial Position
Please use excel for all of this work, to assist with accuracy. Prepare these reports and financial
statements to an appropriate business standard.
