D C Accounting que: x Banker, investme X G disjoint sets - Ge X ades - FIN420 x 2 Simple Ways t x M Inbox (2.332) - ; * 05006/viewContent/1057794/View Question 1 Peter O'Leary incorporated a t-shirt retailing company on the 1" January 2018. The company buys pre-printed cotton t-shirts from China and retails the shirts at a storefront in Dublin city centre 11 The following transactions and events took place within the company during the month of January 2018 i Peter contributed 100,000 of capital into the business. The company rented a storefront in the city centre. The company paid 3,000 for three months of rent (January to March 2018) upfront A van was purchased for 20,000. Office fixtures and fittings were purchased for 10,000 Purchased 1,000 shirts from a supplier for 10 each on credit. Sold 600 shirts to customers for 855 each in cash The company did not receive the electricity bill for January by the end of the month but Peter expects the bill will amount to approximately 1,000. Vin Paid insurance for the premises for period January to April amounting to 800. Sold 200 shirts to customers for 30 each on credit Paid the t-shirt supplier an amount of 5,000 against the amount owed. Wages of 1,500 for the month of January were paid to the company's only employee VH1 1 Required 2. Prepare a schedule to show the specific balance sheet accounts which will be affected by each of the eleven transactions above for the month ended 31 January 2018 (13 Marks) b. Describe the relationship between the income statement and the balance sheet. (4 Marks) c. Explain the difference between inventory and property, plant and equipment. Provide examples from Peter O'Leary's business (3 Marks) image4 image0 (19jpeg image 5.jpeg 3).jpeg image1 (6).jpeg O BH 99 DOD Q X F10 F11 F12 F7 F8 F4 FS % & 8 9. 0 D C Accounting que: x Banker, investme X G disjoint sets - Ge X ades - FIN420 x 2 Simple Ways t x M Inbox (2.332) - ; * 05006/viewContent/1057794/View Question 1 Peter O'Leary incorporated a t-shirt retailing company on the 1" January 2018. The company buys pre-printed cotton t-shirts from China and retails the shirts at a storefront in Dublin city centre 11 The following transactions and events took place within the company during the month of January 2018 i Peter contributed 100,000 of capital into the business. The company rented a storefront in the city centre. The company paid 3,000 for three months of rent (January to March 2018) upfront A van was purchased for 20,000. Office fixtures and fittings were purchased for 10,000 Purchased 1,000 shirts from a supplier for 10 each on credit. Sold 600 shirts to customers for 855 each in cash The company did not receive the electricity bill for January by the end of the month but Peter expects the bill will amount to approximately 1,000. Vin Paid insurance for the premises for period January to April amounting to 800. Sold 200 shirts to customers for 30 each on credit Paid the t-shirt supplier an amount of 5,000 against the amount owed. Wages of 1,500 for the month of January were paid to the company's only employee VH1 1 Required 2. Prepare a schedule to show the specific balance sheet accounts which will be affected by each of the eleven transactions above for the month ended 31 January 2018 (13 Marks) b. Describe the relationship between the income statement and the balance sheet. (4 Marks) c. Explain the difference between inventory and property, plant and equipment. Provide examples from Peter O'Leary's business (3 Marks) image4 image0 (19jpeg image 5.jpeg 3).jpeg image1 (6).jpeg O BH 99 DOD Q X F10 F11 F12 F7 F8 F4 FS % & 8 9. 0
