1.1. You are approached by Ms Noline Fester, who is both the owner of Fester Trading (a sole trader that sells stationery), as well as the business' bookkeeper. In May 2016, Noline had the following information at her disposal. • Capital R200 000 • Drawings R25 000 • Cash sales R 500 000 • Cash Purchases R 125 000 • Credit sales R500 000 • Credit purchases R 250 000 • Inventory (closing) R100 000 • Bank (opening) R 20 500 (unfavorable) • Wages R50 000 • Cost of sales R300 000 • Advertising R25 000 • Telephone R13 000

1.1. You are approached by Ms Noline Fester, who is both the owner of Fester Trading (a sole trader that sells stationery), as well as the business' bookkeeper. In May 2016, Noline had the following information at her disposal. • Capital R200 000 • Drawings R25 000 • Cash sales R 500 000 • Cash Purchases R 125 000 • Credit sales R500 000 • Credit purchases R 250 000 • Inventory (closing) R100 000 • Bank (opening) R 20 500 (unfavorable) • Wages R50 000 • Cost of sales R300 000 • Advertising R25 000 • Telephone R13 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ms. Muchomoney is incredibly wealthy and has a net worth of $1,000,000,000. She starts a business by giving $100,000 to the company and receiving stock in return. That is the only transaction to date this year. The new business's balance sheet would have: Group of answer choices Total owners' equity of $1,000,100,000. Total owners' equity of $100,000. No owners' equity Total owners' equity of $1,000,000,000.
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Gareth Breese started a bammy project in April 2009, by investing 80,000 from his Busta Cup earnings. He also secured a loan from the NIBJ At the start of his business he had the following : Equipment 40,000 Van 100,000 Stock 20,000 Use a the accounting equation to determine the amount he received as loan.
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