Effect of transactions KINGSFORD LTD BALANCE SHEET AS AT 30 JUNE 2021

$ $

Assets Liabilities Current assets Current liabilities Cash 34 000 Accounts payable 35 000 Accounts receivable 72 000 Tax payable 17 000 Inventory 94 000 Shareholders’ Equity Share capital 80 000 Retained profits 68 000 200 000 200 000 During the year ended 30 June 2022, the following information was recorded in the company’s accounts:

1 issued $500 000 in share capital 2 credit sales $400 000 (COGS $80 000)

3 cash sales $12 000 (COGS $3000)

4 collections from accounts receivable $300 000 5 purchases of inventory on credit $140 000 6 payments of accounts payable $100 000 7 wages expense $180 000, not yet paid 8 wages paid $44 000 (reduce wages payable)

9 paid tax payable $12 000 10 cash dividends of $40 000 declared and paid 11 received $20 000 cash deposit from a customer for work to be done in the next accounting period 12 borrow $150 000 from the bank (ignore interest).
a What is the separate effect of each of the transactions on revenues, expenses, assets and liabilities. Put increase, decrease or no effect in each box below. Include dollar amounts.
Revenues Expenses Assets Liabilities 1 2 3 4 5 6 7 8 9 10 11 12 b Calculate the balance of each of the following accounts:
• accounts receivable • inventory • accounts payable • tax payable.