Exercise accounting

To illustrate the complete accounting cycle, we will consider the following list of selected transactions.  The transactions were completed by Bati Transport in the month of January 2012.

January 1. Ato yimer took Birr 450,000 from his personal savings and deposited it in the name of Bati transport.

January 2.  Bati Transport purchased two used trucks for Birr 150,000 each, on cash.

January 4. Bati Transport received a check for Birr 650 for services given to Alem Trading.

January 4. Received an invoice for truck expenses Birr 90.

January 11. Paid Birr 600 for Awash Insurance Company to buy an insurance policy for its trucks.

January 16.  Ato Yimer issued a check for Birr 9,400 to the workers as a salary for

                     two weeks.

January 20.  Bati transport Billed Muradu’s Supermarket for goods transported from Djibouti to Adama Birr 2,650

January 21.  Ato Yimer wrote a check for birr 450 to have one of the trucks repainted

January 21.  Bati trading purchased stationary materials and other supplies of Birr 740 on account

January 22.  Office equipment of Birr 11,600 is bought on account.

January 23.  Purchased an additional truck for Birr 250,000 paying birr 100,000 in cash                                  and issuing a note for the difference.

January 23.  Recorded services billed to customers on account birr 14,600.

January 25.  Received cash from customers on account Birr 15,000.

January 27.  The owner withdrew Birr 500 in cash for his personal use.

January 28.  Paid Birr 9,400 to workers as a salary for the last two weeks of the month.

January 30.  Paid telephone expense of Birr 95 and electric expenses of Birr 125 for the                   month.

January 30.  Paid other miscellaneous expenses Birr 50.

January 31.  Paid Birr 4,000 as a rent for a building used for office space.