2. Middy Garden Services provides you with the following information at 28 28 February 205 Machinery Bank Vehicles 60 000 250 000 100 000 R30 000 to Miday Dale Golf Course, a client of Middy Garden Services, owes R30 0 Garden Services for garden services rendered in January 20.9 Middy Garden Services owes Clean It Machines R5 000. What is the net asset value (equity) of Middy Garden Services as at 28 Februar (1) 445 000 (2) 450 000 (3) 440 000 - (4) 435 000 (5) 405 000 3. Which of the following statements are correct? (a) When income earned by an entity is more than its expenditure, the entity makes a profit. (b) When the income earned by an entity is less than its expenditure, the entity makes a profit. (C) The profit that an entity makes, increases the net worth of the owner. (d) The loss that an entity makes, decreases the net worth of the owner. (e) The statement of financial position measures the financial performance of an entity (1) a,b,c,d and e. (2) a,b,c and e. (3) a,c,d, and e. (4) a,b,c and d. (5) a,c,and d. Gizmo Traders bought a new electricity generator, to be used during load shedding, from Luna Lights for R50 000 and paid for it through an electronic funds transfer (EFT). What effect will the above transaction have on the accounting equation if Gizmo Traders has a favourable bank balance? Liabilities Equity +R50 000 Assets +R50 000 +R50 000 L (2) 0 +R50 000 +R100 000 +R50 000 +R50 000 -R50 000 +R50 000