BUS 4113: Nad Al Sheba Equestrian Center - Financial Accounting Assignment

Internal Code: MAS6054

Financial Accounting Assignment:

Mustafa started an equestrian business giving people horse riding lessons called Nad Al Sheba Equestrian Centre on July 1, 2014. On December 31, 2016, Mustafa needs to make adjusting entries. a) On December 1 st , Nad Al Sheba Equestrian Centre paid rent for the stable space for one year in advance. This amount is reflected on the Trial Balance at the end of December. b) During December, approximately Dhs1,300 worth of utilities were used operating the stable. This amount has not yet been recorded in the accounts, as a bill has not been received. c) Nad Al Sheba Equestrian Centre pays its riding instructors on the first day each month for the prior month’s work. The instructors have earned Dhs 5,000 during December. d) At the end of every month, Nad Al Sheba Equestrian Centre counts the office supplies left on hand. This count on December 31 shows that it has office supplies on hand of Dhs 1,000. e) Nad Al Sheba Equestrian Centre completed riding lessons for clients worth Dhs 6,000 during the month of December. The clients have not paid for the lessons, and the bill will not be sent to them until later in January. f) Nad Al Sheba Equestrian Centre has completed (earned) Dh 30,000 worth of riding lessons that customers paid cash for in November. g) The loan payable is for an 8-year loan that has an annual interest rate of 5%. An interest payment for December has not been made. h) Depreciation of the equestrian equipment has not been recorded for December. The