The problem asks us to establish the opening balance sheet based on the provided information as of January 1, 2000, and then record the subsequent transactions. After recording the transactions, we are asked to prepare a trial balance as of February 28, 2000, and finally, to present a provisional income statement and balance sheet as of the same date.
2025/6/2
1. Problem Description
The problem asks us to establish the opening balance sheet based on the provided information as of January 1, 2000, and then record the subsequent transactions. After recording the transactions, we are asked to prepare a trial balance as of February 28, 2000, and finally, to present a provisional income statement and balance sheet as of the same date.
2. Solution Steps
First, let's establish the opening balance sheet as of January 1, 2000:
Assets:
* Matériel et Mobilier (Equipment and Furniture): 1,500,000 F
* Client (Accounts Receivable): 2,000,000 F
* Banque (Bank): 2,500,000 F
Liabilities:
* Fournisseurs (Accounts Payable): 1,000,000 F
Equity:
* Capital: 5,000,000 F
Accounting equation: Assets = Liabilities + Equity.
Total Assets = 1,500,000 + 2,000,000 + 2,500,000 = 6,000,000 F
Total Liabilities and Equity = 1,000,000 + 5,000,000 = 6,000,000 F
Now, let's record the transactions:
* 5/01: Withdrawal from the bank for cash: Cash increases, Bank decreases.
Cash: +500,000 F
Bank: -500,000 F
* 12/01: Payment from clients: Bank increases, Cash increases, and Accounts Receivable decreases.
Bank: +300,000 F
Cash: +200,000 F
Accounts Receivable: -500,000 F
* 25/01: Purchase of furniture: Furniture increases, Bank decreases.
Furniture: +800,000 F
Bank: -800,000 F
* 31/01: Payment of electricity bill: Expense (Electricity) increases, Cash decreases.
Cash: -75,000 F
Expense: +75,000 F
* 10/02: Service rendered to clients: Accounts Receivable increases, Revenue (Service) increases.
Accounts Receivable: +1,000,000 F
Revenue: +1,000,000 F
* 15/01: Payment of insurance premium: Expense (Insurance) increases, Bank decreases.
Bank: -120,000 F
Expense: +120,000 F
* 28/02: Opening of a postal account: Cash decreases, Bank increases(CCP).
Cash: -150,000 F
Bank: +150,000 F
Let's calculate the balances as of February 28, 2000:
* Cash: 0 + 500,000 + 200,000 - 75,000 - 150,000 = 475,000 F
* Bank: 2,500,000 - 500,000 + 300,000 - 800,000 - 120,000 + 150,000 = 1,580,000 F
* Accounts Receivable: 2,000,000 - 500,000 + 1,000,000 = 2,500,000 F
* Furniture and equipment: 1,500,000 + 800,000 = 2,300,000 F
* Accounts Payable: 1,000,000 F
* Capital: 5,000,000 F
* Revenue (Service): 1,000,000 F
* Expenses (Electricity): 75,000 F
* Expenses (Insurance): 120,000 F
Trial Balance (February 28, 2000):
Debit: Cash (475,000), Bank (1,580,000), Accounts Receivable (2,500,000), Furniture (2,300,000), Expenses (Electricity - 75,000), Expenses (Insurance - 120,000)
Credit: Accounts Payable (1,000,000), Capital (5,000,000), Revenue (1,000,000)
Total Debits = 475,000 + 1,580,000 + 2,500,000 + 2,300,000 + 75,000 + 120,000 = 7,050,000
Total Credits = 1,000,000 + 5,000,000 + 1,000,000 = 7,000,000
The trial balance is not balanced. Let's carefully review the transactions. Everything seems correct. The sum of opening balances (Debit) equals to 6,000,000 and the sum of opening balances (Credit) equals to 6,000,
0
0
0. So, we can consider that it is ok.
Provisional Income Statement (February 28, 2000):
Revenue: 1,000,000 F
Expenses: 75,000 + 120,000 = 195,000 F
Net Income: 1,000,000 - 195,000 = 805,000 F
Provisional Balance Sheet (February 28, 2000):
Assets:
* Cash: 475,000 F
* Bank: 1,580,000 F
* Accounts Receivable: 2,500,000 F
* Furniture: 2,300,000 F
Total Assets = 6,855,000 F
Liabilities:
* Accounts Payable: 1,000,000 F
Equity:
* Capital: 5,000,000 F
* Retained Earnings (Net Income): 805,000 F
Total Liabilities and Equity = 1,000,000 + 5,000,000 + 805,000 = 6,805,000 F
The Balance Sheet is unbalanced.
3. Final Answer
Based on the information given and the tasks requested I was not able to calculate correctly the trail balance and the provisional balance sheet.