b. REQUIRED a. Show the effect of every transaction on the accounting equation by using the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
b. REQUIRED a. Show the effect of every transaction on the accounting equation by using the table below. Begin with the totals (balances) on 1 October 20.4. No. Assets Equity Liabilities Equip- ment Inven- tories Debtors Bank Capital Income Expenses Loan Creditors R R R R R R R R R Draft the statement of profit or loss and other comprehensive income of Freshers for the month ended 31 October 20.4. C. Draft the statement of financial position of Freshers as at 31 October 20.4. INFORMATION Freshers had the following assets and liabilities on 1 October 20.4: Equipment Inventory (merchandise/goods for resale) Debtors Bank (favourable) Loan from TT Bank Creditors Freshers had the following transactions during October 20.4: 4. 5. 2345 2. Issued invoices for R8 400 (cost R5 600) to customers for goods sold on credit. 3. Received R1 500 from a debtor as payment of his account. Purchased inventory on credit, R2 000. Paid repairs to equipment by EFT, R350. 6. Sold goods for cash, R7 200 (cost R4 800). 7. Paid rent of R3 000 by EFT. 8. Received an invoice for stationery purchased on credit, R120. 9. 10. Paid interest on the loan for October 20.4 at the market related rate of 10% per annum via EFT. Issued an EFT to a creditor to settle the account of R2 800. 11. Received R140 for the rent of a storeroom. R 65 000 18 000 7 500 8 100 30 000 11 600 b. REQUIRED a. Show the effect of every transaction on the accounting equation by using the table below. Begin with the totals (balances) on 1 October 20.4. No. Assets Equity Liabilities Equip- ment Inven- tories Debtors Bank Capital Income Expenses Loan Creditors R R R R R R R R R Draft the statement of profit or loss and other comprehensive income of Freshers for the month ended 31 October 20.4. C. Draft the statement of financial position of Freshers as at 31 October 20.4. INFORMATION Freshers had the following assets and liabilities on 1 October 20.4: Equipment Inventory (merchandise/goods for resale) Debtors Bank (favourable) Loan from TT Bank Creditors Freshers had the following transactions during October 20.4: 4. 5. 2345 2. Issued invoices for R8 400 (cost R5 600) to customers for goods sold on credit. 3. Received R1 500 from a debtor as payment of his account. Purchased inventory on credit, R2 000. Paid repairs to equipment by EFT, R350. 6. Sold goods for cash, R7 200 (cost R4 800). 7. Paid rent of R3 000 by EFT. 8. Received an invoice for stationery purchased on credit, R120. 9. 10. Paid interest on the loan for October 20.4 at the market related rate of 10% per annum via EFT. Issued an EFT to a creditor to settle the account of R2 800. 11. Received R140 for the rent of a storeroom. R 65 000 18 000 7 500 8 100 30 000 11 600
Expert Answer:
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Posted Date:
Students also viewed these accounting questions
-
Vaughn issued an 9%, 10-year $2,000,000 bond to build a monorail mass transit system. The city received $1,764,431 cash from th bond issuance on January 1, 2025. The bond yield is 11%. Interest is...
-
1.2.1 The format recommended by the International Financial Reporting Standards for the preparation of a statement of profit or loss and other comprehensive income calculates and shows the gross...
-
The following balances were extracted from the accounting records of Brakes Ltd for the financial year ended 28 February 2022: Revenue...
-
Discuss the methodology of logical positivism and falsification in questions of a pre history of science and technology studies
-
Using Figure 14.11 as a guide, explain how LASIK surgery corrects the flow of light into the eye. a. Nearalghtedness b. Farslghtodness c. Asligrralism Figure 14.11 How corrective lenses correct...
-
Investigate incidents where employees were fired for social media use. Prepare to discuss examples in class. Could the employer have avoided these incidents?
-
Can 298 coins be stacked into 6 stacks with an equal number of coins in each stack?
-
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporations anticipated annual volume of 30,000 units. The company uses a 40% markup...
-
Peter is a farmer with 15 hectares of land on which he has grown oranges since 1970. He inherited the land from his father in that year. The farm has gradually been surrounded by urban development...
-
CASH PAID FOR MERCHANDISE Guild Company's cost of goods sold for 20-2 was $500,000. Compute the amount of cash paid for merchandise in 20-2. The December 31, 20-2 and 20-1, balances of Merchandise...
-
Company is considering the purchase of a new piece of machinery. Initial cost is $4000000 and a useful life of five years. Company hurdle rate is 8%. Following cash flow projections have been made: ...
-
Fixed costs=$1600 Varible cost per parking spot= $10 Varible cost commission=$2 Max spots=750 Create a contribution margin income statement for 500 spots
-
Fig.15.31 Shows diagrammatically a compound epicyclic gear train. Wheels A, D and E are free to rotate independently on spindle C, while B and C are compound and rotate together on spindle P, on the...
-
ABC Company sells a variety of drink and food products including potato chips and sodas. The segmented income statements for these two products (profit centers) are as follows: total soda chip Sales...
-
Which basic assumption is illustrated on a firm reports financial results on an annual basis
-
a) Calculate the Expected Returns for Asset X & Y for each year. b) Calculate the overall Expectation Portfolio Return. c) Calculate the Standard Deviation of the Expected Portfolio Returns.
-
Davy Jones needs to file taxes for his business and provides the following information. Using your Tax Guide, you determine you re going to be required to prepare a 1 0 4 0 Schedule C Profit or Loss...
-
From the choice of simple moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? please write it in word...
-
Indicate whether each of the following statements is true or false: a. The cash basis of accounting recognizes revenues when they are received. b. In the cash basis of accounting, there is no such...
-
As part of recent contract negotiations, Peterson Corporation has presented two pension plan options to its employees. The employees are to vote on which plan they would like the company to...
-
Explain what basic assumption is implicit in the gross margin inventory estimation method. Why would this assumption be a challenge to defend for many companies? Identify steps a company could take...
-
Describe why a small-cap stock is more likely to be a growth stock rather than an income stock.
-
Many investors buying stocks are not individuals, but institutions, such as retirement plans and mutual funds, which have extremely large amounts of money to buy and sell large blocks of stock.
-
The capital gains received on stock sales is considered income, and you have to pay taxes on it. To encourage people to invest and to hold on to those investments, the U.S. government taxes capital...
Study smarter with the SolutionInn App