Question 25 of 27 3.0 Points The marketing manager of Innocent Traders was given a budget for an amount of R17 890 to perform the advertising of Innocent Traders for the current financial period ended 28 February 2019. Pearl Advertising Agency was appointed on 30 April 2018 by the marketing manager to assist with the advertising of Innocent Traders for the current financial period. On 1 May 2018, the marketing manager paid R14 630 to the advertising agency for advertising services to be provided during the current financial period. The payment was based on the quotation that was received from Pearl Advertising Agency On 26 February 2019 the bookkeeper of Innocent Traders reconciled all the invoices that were received from Pearl Advertising Agency for current financial period and noted that the total of the invoices amounted to R16 789 The payment that was made to Pearl Advertising Agency was correctly recorded in the accounting books of Innocent Traders, however no adjustment journal entry has been processed yet. . The effect that the adjustment journal entry will have on the basic accounting equation of Innocent Traders for the year ended 28 February 2019 will be? A. Assets will decrease by R3 260; equity will decrease by R3 260 and liabilities will not be affected . . . B. Assets will not be affected, equity will decrease by R1 101 and liabilities will increase by R1 101 OC. Assets will not be affected, equity will decrease by R3 260 and liabilities will increase by R3 260. OD. Assets will not be affected, equity will decrease by R2 159 and liabilities will increase by R2 159. O E. Assets will not be affected; equity will increase by R2 159 and liabilities will decrease by R2 159 Reset Selection . . . Question 26 of 27 3.0 Points GBV Club is a non-profit organisation that was started by 120 members on 1 January 20.7. The objective of GBV Club is to address gender-based violence that is faced by South African citizens, by conducting workshops, road shows and counselling to perpetrators, victims and those who have not yet experienced it. The constitution GBV Club indicated the following: (a) Membership fees amount to R1 500 per member per annum. (b) Entrance fees to join the club amount to R150 per member and it should be capitalised. (c) Membership fees needs to increase by 10% at the beginning of every year, starting from 1 January 20.8. (d) Members can pay their membership fees in advance (e) Members who have not paid their previous' years membership fees by 30 June of the following year, are considered as irrecoverable and must be written off. GBV Club does not provide members with refunds if they leave the club. In order to prepare the financial statements for the current financial period ended 31 December 20.8, the bookkeeper presented the following information regarding the finances of the club to members at a meeting held on 31 December 20.8 Membership fees and entrance fees. (1) Out of the 24 members who did not pay their membership fees for the previous financial period, only 16 members have paid their outstanding membership fees by 30 June 20.8. (2) 6 members paid their membership fees on 31 December 20.7 for the financial period ending 31 December 20.8 (3) 60 new members joined the club and each member paid their entrance fees of R150. . (4) 12 members have paid their membership fees for the financial period ended 31 December 20.9. . (5) Only 8 members have not yet paid their membership fees for the current period. (6) Membership fees received of R306 480 for the current financial year ended 31 December 20.8. The total amount for membership fees to be transferred to the income and expenditure statement for the year ended 31 December 20.8, will be . O A. R260 700 OB. R331 380 B. O C. R270 900 . D. R283 800 O E. R246 600 Dopot Soletion
