Answered: accrual accounting?

Business

Accounting

accrual accounting?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.10E: Effects of transactions on Accounting equation On Time Delivery Service had the following selected...

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12. Show the effect of the following transactions for the month October, 2023 on the assets,liabilities and equity (accounting equation) of the “Business Consultancy Services” started by Mr.Malcom Davis on October 1, 2023 at Business Bay, Dubai. 1. Started business with cash $200,000.2. Deposited $50,000 in a bank.3. Purchased office supplies on credit from Milton Traders for $30,0004. Purchased office supplies for cash $5,0005. Borrowed cash (loan) $40,000 from Fair Deal Financials.6. Paid Milton Traders by cheque $6,000.7. Paid back part of the loan (Fair Deal Financials) $ 10,0008. Cash paid as salaries of employees $30,000.9. Furniture purchased for $20,000, paid cash10. Withdrawn $20,000 cash from business for personal use.11. Provided consultancy services to Mr. David on account, $25,00012. “Business Consultancy Services” buys land for $40,000.13. Received $ 10,000 from Mr. David by cheque14. Withdrawn $10,000 from bank for personal use.15. “Business Consultancy Services” paid:…
EA16. Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders’ equity, and prove the company’s accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange.B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed.C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid.E. The electric bill in “C” is paid.Your answer: (Answer B, C, D, and E by referring to the answer example for A)A. (as an example, the answer for A. is shown below)Cash will increase $25,000, so total assets will increase $25,000.Common stock will increase $25,000, increasing total stockholders’ equity $25,000.There is an equal increase on each side of the equation.There is an equal decrease on each side of the equation.
Q1) Analyze these transactions and prepare a table to show their effect on the accounting equation. Mr. Rasool started a courier service in Ibri, Fast Couriers, on January 1, 2020. The followingtransactions occurred during the month of January 2020.January 1 Rasool invested OMR 15,000 in the business.January 3 The business borrowed OMR 5,000 from Bank Nizwa, to be repaid after 3 years.January 4 Bought a delivery van OMR 7,000 from Fine Automobiles. Rasool paid OMR 2,000 and thebalance will be paid later.January 5 Paid insurance for full year OMR 1,000.January 7 Billed a customer OMR 500, for delivery service and received cash.January 10 Purchased packing materials (supplies) for OMR 500 on account.January 12 Received invoice from Shelly Autocare OMR 250, for the repair of delivery van. Businessagreed to pay the cash later.January 14 Earned OMR 1,000 on a customer order for an overseas delivery, but not received the cash.January 15 Rasool took OMR 300 for his personal expenses.January…
Q4: Prepare Income Statement and Balance Sheet from the following Trial   Balance of Abc Company Trial Balance on 30 September 2020 Debit  Credit Owners capital 125,000Drawings - owners25,000 Purchases160,000 Wages 30,000 Opening inventories25,000 Travelling expenses5,000 Plant and machinery 105,000 Furniture 45,000 Cash and cash equivalents59,000 Accounts receivable 50,000 Accounts payable 33,000Bank loan 50,000Rent expenses6,000 Marketable securities58,000 Purchase returns 12,000Sales returns5,000 Miscellaneous expenses4,000 Stationery expenses8,000 Salary expenses25,000 Sales  365,000Service revenue 17,500 Interest 7,500 Total610,000610,0001. Closing inventory was RO. 30,0002. Salary expenses of RO. 1,500 were outstanding.3. Cash collected for the services to be performed in future periods is RO. 55004. Depreciation rate for Plant & Machinery is 25% per annum and depreciation   expenses for Furniture is 10% per annum.
Q3 Ms. Marwa started a flower shop during May 2018, Prove the accounting equation by balancing the following items. Capital OMR 25,400; Accounts Payable OMR 2,600; Fixtures OMR 2,800; Car OMR 3,900; Stock of goods OMR 4,550; Accounts Receivable OMR 2,780; Cash at bank OMR 6,750; Cash in hand OMR 7,220. During the first week of May 2018, if the following transaction takes place how the accounting equations changes:                                          She bought extra stock for goods OMR 500 on Credit.    She bought a computer by cash OMR 750.
Q3 Ms. Marwa started a flower shop during May 2018, Prove the accounting equation by balancing the following items. Capital OMR 25,400; Accounts Payable OMR 2,600; Fixtures OMR 2,800; Car OMR 3,900; Stock of goods OMR 4,550; Accounts Receivable OMR 2,780; Cash at bank OMR 6,750; Cash in hand OMR 7,220. During the first week of May 2018, if the following transaction takes place how the accounting equations changes:                                          She bought extra stock for goods OMR 500 on Credit.    She bought a computer by cash OMR 750.                          You are required to prove the accounting equation as on 7th May 2018 after completing the above transactions. [Use the following tables]                   Assets Amount in OMR Capital + Liabilities Amount in OMR Total Total She bought extra…
Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
Case Scenario1 - Hien Hien is in business selling high quality glassware to retailers. Her accountant prepares a statement of financial position each year following Hien’s year end of 31 December. It is now 30 June 20X3. Hien, who has no knowledge of accounting, asks you for some assistance: ‘I know you’re studying accountancy and I’ve got a little exercise for you. The situation is this: I seem to be doing really well if the bank account is anything to go by. At over £62,000 the balance is higher than it’s ever been before. I’m wondering if I can actually spend this money. I don’t need it for myself but I’m thinking about buying some shares in the glass company which supplies a lot of the goods I sell. Could you possibly draw up a statement of financial position for me for the end of June and let me know whether the business is really looking as healthy as I think it is?’ Hien supplies the following list of balances at 30 June, prepared by her book-keeper.…
sing the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Assets Beginning of Year: $25,000 - $19,000 Liabilities End of Year: $60,000 - $25,000 1) What is the equity at the beginning of the year? Beginning Equity 6,000 2) What is the equity at the end of the year? Ending Equity 35,000 3) If the owner contributes $5,400 and the owner withdraws $38,500, how much is net income (loss)? Net Income (Loss) 62,100 This the answers I need help with but you need all of this to answer the questions 4 If net income is $3,400 and owner withdrawals are $8,900, how much did the owner contribute (owner, capital)? Owner, Capital 5) If the owner contributes $16,200 and net income is $19,800, how much did the owner withdraw (owner, withdrawals)? Owner, Withdrawals 6) If the owner contributes $43,600 and the owner withdraws $1,900, how much…
The following are the business transactions of Flora Florist for the month of October 2020: Oct 1 Started a business with capital of RM10,000.00. The money is deposited into the business bank account. 4 Bought a furniture and fittings for RM1,800.00, paid by cheque. 6 Bought an office equipment for RM2,500.00 on account. 8 Sold 5 bouquets of flowers amounting RM750.00 and received cash. 11 Obtained a loan of RM3,500.00 from a friend, Tina Richards. Deposited the money into the business bank account. 15 Sold 95 bouquets of flowers amounting RM3,325.00 to Sekolah Kebangsaan Proton City for a Year 6 Graduation. The school promised to pay at a later date. 18 Drawings RM250.00 by cheque. 23 Sold 15 bouquets of flowers amounting RM825.00 and received cash. 28 Paid wages RM500.00 and rent RM400.00 by cheques respectively. Required: Determine the effect of each transaction on the accounting equation.
Question 1:Analyze these transactions and prepare a table to show their effect on the accounting equation. Mr. Rasool started a courier service in Ibri, Fast Couriers, on January 1, 2020. The followingtransactions occurred during the month of January 2020.January 1 Rasool invested OMR 15,000 in the business.January 3 The business borrowed OMR 5,000 from Bank Nizwa, to be repaid after 3 years.January 4 Bought a delivery van OMR 7,000 from Fine Automobiles. Rasool paid OMR 2,000 and thebalance will be paid later.January 5 Paid insurance for full year OMR 1,000.January 7 Billed a customer OMR 500, for delivery service and received cash.January 10 Purchased packing materials (supplies) for OMR 500 on account.January 12 Received invoice from Shelly Autocare OMR 250, for the repair of delivery van. Businessagreed to pay the cash later.January 14 Earned OMR 1,000 on a customer order for an overseas delivery, but not received the cash.January 15 Rasool took OMR 300 for his personal…
If the balance in Pirate Landing's capital account on Oct. 1 was $56,000, and there were $7,900 decreases in the capital account during the month, how much did Pirate Pete invest in the company during the month if the Oct. 31 account balance is $49,600? Please donot provide answer in image format and it should be in step by step format and provide solution asap