Indicate which accounting principle ie violated statement of financial position of the company. It was reported at that amount2. A machine was purchased from Japan for 350,000 Yen and it was shown in the1. George bought a racing car and as an owner and a manager of his own company,Directions. Indicate which accounting principle is violated. Choosc your answers fromBusiness entityAccrual accountingAccrualTime PeriodTime periodGoing ConcernBusiness EntityMaterialityCostMatchingwhile all the other assets were reported in Philippine peso.that he is going to prepare the statements.position of the shoe store.recorded as an asset.6. A shoe factory needed a machine for fast production, so they ordered it. Upon ordethe machine was immediately listed as one of its assets.7. Jenny has a sari-sari store. Whenever she and her family do not have anything toeat, she will get food from her sari-sari store without paying for it.8. Mr. Sanchez has a kimchi business which he believes will only operate for two yearsbecause of lack of customers.9. Ms. Tabugan is an accountant in JYP Bookstore and she prepares financialstatements only whenever she wants.10. Apple Salon performs a hair treatment on Mrs. Valdez on account (withoutpayment) but Apple, the owner, did not record the service revenue.30

Accounting principles are those rules, regulations and guidelines that will be used by the…

Answered: 1. George bought a racing car and as an…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.26E: Accounting concepts Match each of the following statements with the appropriate accounting concept....

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Instructions. Indicate which concepts/principles are violated. Support your answer. 1. No financial statements were prepared by Michael Go for his business. He explained that he will prepare the statements when he closes the business, which he predicts to take place after 20 years 2. The statement of financial position of a company included an equipment purchased from Japan for 350,000 yen. It was reported at that amount in the statement of financial position while all the other assets were reported in Philippine pesos. note: please make your answer clear and easy to understand thank you.
ANALYZING TRANSACTIONS - BASIC ACCOUNTING EQUATION Engineer Shackile Asuncion opened an engineering and design firm. His accountant prepared the following transactions: Shackile Asuncion, the owner invested cash to the business, P150,000. Shackile Asuncion, the owner invested office equipment to the business amounting to P60,000. Note: There is unpaid balance to the supplier of the office equipment to which the company assumed P10,000. Shackile Asuncion, invested additional cash to the business, P15,000. Paid the account in number 2, P10,000 Paid personal expenses of the owner because he is currently out of town. The owner will pay his account when he returns in town, P3,000. Bought 2 computer units for cash P30,000. Bought office furniture on credit who paid in cash, P12,000. Rendered services to a client who paid in cash, P20,000. Billed a client for services rendered, P12,000. Rendered services to a client, P10,000. The client paid 40% cash and the balance in note. INSTRUCTION:…
1. The following are selected transactions of BSAIS Company, an accounting firm:June 1 Andy Alarcon invested P200,000 cash to establish the business of which P150,000 was deposited to its UnionBank current account. June 2 He also invested a computer acquired a few months ago at a cost of P55,000 but there is still an outstanding liability of P25,000 due to ACER Electronic Equipment. This liability is to be assumed by the business.June 5 He also invested furniture and fixtures which were acquired a year ago for P20,000 but with a current market value of P10,000. Dec. 8 Withdrew a piece of furniture which was invested last June 5 and listed in the books as P2,500. It has an accumulated depreciation of P250.Required: Prepare the entries to record the above transactions. 2. Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can only afford to pay P350,000. The following are the assets of Adriano’s business:…
Mr. Anshori decided to open PO Andalan Jaya. The following is a transaction that occurred at PO Andalan Jaya a. Invested Mr. Anshori's personal money of Rp10,000,000 into PO Andalan Jaya b. Purchased equipment for Rp 2,000,000 in cash c. Purchased equipment for Rp1,000,000 on credit d. Paid Rp.400,000 for the purchase of equipment on credit Requested: Record the transactions that occurred at PO Andalan Jaya on Accounting equation!
Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31, 20Y1, Go109 has assets of $659,000 and liabilities of $165,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Penny Lyman, capital, as of December 31, 20Y1.$fill in the blank 1 b. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $88,000 and liabilities increased by $27,000 during 20Y2.$fill in the blank 2 c. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets decreased by $151,000 and liabilities increased by $13,000 during 20Y2.$fill in the blank 3 d. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $152,000 and liabilities decreased by $16,000 during 20Y2.$fill in the blank 4 e. Net income (or net loss) during 20Y2, assuming that as of December 31, 20Y2, assets were $782,000, liabilities were $196,000, and…
Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. d. Moss Corporation closes the books each month and prepares monthly financial statements. Violation: (Yes/No) Applicable Assumption/Principle: e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US Violation: (Yes/No) Applicable…
Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. d. Moss Corporation closes the books each month and prepares monthly financial statements. Violation: (Yes/No) Applicable Assumption/Principle: e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US Violation: (Yes/No)…
8) Marya Travel Company plans to know the total assets it has possessed as on date. Ms Shima, the accountant is asked to calculate the Total Assets. She checks the Income Statement and Balance Sheet where it shows the value of Building OMR 50,000, Office Stationery OMR 500, Creditors OMR 5,000 and Plant OMR 50,000. What is Total Assets of the company? a. OMR 100,000 b. OMR 105,500 c. None of the options d. OMR 94,500
Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s personal water and electricity of N$2 000. Show the effect of the transaction on the Accounting Equation. Use the equation: A= OE + L a. Asset; -6 000 = Equity; -6 000 + Liability; nil b. Asset; -6 000 = Equity; -8 000 + Liability; +2 000 c. Asset; nil = Equity; -6 000 + Liability; +6 000 Asset; -2 000 = Equity; -2 000 + Liability; nil d. Asset; nil = Equity; -6 000 + Liability; +6 000 e. Asset; nil = Equity; -8 000 + Liability; +8 000
Dual aspect concept gives us the accounting equation. State the effects of the following transactions in the accounting equation. (e.g. asset-increase, liability-decrease etc.) Started business with capital Rs. 50,000. Purchased goods on credit from Mohan Rs. 10,000. Machinery purchased Rs. 25,000. Took a bank loan Rs. 20,000. Paid cash to Mohan Rs. 5,000.
Question text Marya Travel Company plans to know the total assets it has possessed as on date. Ms Shima, the accountant is asked to calculate the Total Assets. She checks the Income Statement and Balance Sheet where it shows the value of Building OMR 50,000, Office Stationery OMR 500, Creditors OMR 5,000 and Plant OMR 50,000. What is Total Assets of the company? a. None of the options b. OMR 94,500 c. OMR 105,500 d. OMR 100,000
Show how the below transactions affect the financial position of the business as represented by A = E + L. You need to clearly indicate whether the element has increased or decreased and provide the relevant amount and account that would be affected.EG. The business pays R6 333 per month for the rental of some business premises. All rentals were paid in cash during the year. No. A = E + L Eg. -75996 Bank (6333 x 12) - 75996 Rent Expense Please use format of table above for the below transactionsThe following transactions occurred in the business during the year ended 31 December 2020: 1. The owner deposited R105 000 cash into the business’s bank account on 1 January 2020.2. The business bought R450 000 worth of inventory from various suppliers during the year. 80% of these purchases were on credit and the remaining 20% were paid for in cash.3. During the year the business paid R96 900 cash in operating costs. These costs related to goods and services that had all been…

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