business paid the utilities expense RO 2000
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- Transaction Assets Liabilities Capital a) The owner brought in his furniture for business use b) Bought motor van on credit for business use c) Deposited cash into a bank d) Sold goods on credit to Ayoyo Sdn Bhd e) Paid creditor Imran Enterprise by cheque f) Bought goods on credit from Batani Enterprise g) The owner invested additional cash into business h) Goods are returned by Batani Enterprise because damage i) Received a loan from OACC BankWhich of the following transactions would increase the cash by RO 5000 and increase the revenue by RO 5000? a. Purchased Furniture RO 5000 b. Took Loan of RO 5000 from Bank Nizwa c. Performed service to the customer RO 5000 and the customer paid cash RO 5000 d. Paid RO 5000 for the creditorsA number of business transactions carried out by Smalling Manufacturing Company are as follows:a. Borrowed money from a bank.b. Sold land for cash at a price equal to its cost.c. Paid a liability.d. Returned for credit some of the office equipment previously purchased on credit but not yetpaid for. (Treat this the opposite of a transaction in which you purchased office equipment oncredit.)e. Sold land for cash at a price in excess of cost. (Hint: The difference between cost and salesprice represents a gain that will be in the company’s income statement.)f. Purchased a computer on credit.g. The owner invested cash in the business.h. Purchased office equipment for cash.i. Collected an account receivable.Indicate the effects of each of these transactions on the total amounts of the company’s assets,liabilities, and owners’ equity. Organize your answer in tabular form, using the following columnheadings and the code letters I for increase, D for decrease, and NE for no effect. The answer…
- Which of the following transactions would decrease the cash by RO 5000 and decrease liability 5000? a. the business sold goods to the customer worth RO 5000 and the customer promised to pay later b. the business repaid the loan of RO 5000 which was borrowed in the last month c. The business borrowed loan of RO 5000 d. The business gave loan of RO 5000A number of business transactions carried out by Smalling Manufacturing Company are as follows: a. Borrowed money from a bank. b. Sold land for cash at a price equal to its cost. c. Paid a liability. d. Returned for credit some of the office equipment previously purchased on credit but not yet paid for. (Treat this the opposite of a transaction in which you purchased office equipment on credit.) e. Sold land for cash at a price in excess of cost. (Hint: The difference between cost and sales price represents a gain that will be in the company's income statement.) f. Purchased a computer on credit. g. The owner invested cash in the business. h. Purchased office equipment for cash. i. Collected an account receivable. Indicate the effects of each of these transactions on the total amounts of the company's assets, liabilities, and equity. Organize your answer in tabular form, using the following column headings and the code letters I for increase, D…Show the effect of the following transactions in the accounting equation. For example: No. Account DR Account CR A = OE + L 1. Furniture Capital + 20 000 + 20 000 0 The owner deposited R 60 000 into business current account as his contribution. Sold goods on credit to F Malila for R 7000 (Cost price R4 500). Business obtained a loan of R30 000 from FCB Bank, the money was transferred to the business current account. Bought stationery on credit, R300. Owner withdrew R400 for personal use.
- There is a decrease in equity and decrease in asset in the business. Which transaction might have occurred? a. The owner withdrew cash from the business to buy a gift to his friend b. The owner purchased car to be used in the business c. The Owner received a gift from his friend d. The Owner paid the monthly salaried to the employees.Direction: Read the following case study and answer the question: During the period, the business acquires an equipment costing P150,000 in cash. The owner of the business is questioning why you as his accountant, did not include the P150,000 equipment as one of the items of operating expense in the income statement which resulted in a higher income tax of the business?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…
- Ali, the owner of the business purchased Furniture for RO 10, 000 to be used in the business. The manager estimates the value of the Furniture to be RO 11,000 in the market. If the Business follows Historical Cost concept, the amount to be recorded for Furniture is a. RO 11,000 b. RO 1000 c. RO 21,000 d. RO 10,000 Which of the following transactions would increase the cash by RO 5000 and increase the revenue by RO 5000? a. Paid RO 5000 for the creditors b. Performed service to the customer RO 5000 and the customer paid cash RO 5000 c. Purchased Furniture RO 5000 d. Took Loan of RO 5000 from Bank Nizwa Ms. Nihal started her business by investing RO 30,000 in cash. This transaction would? a. increase one asset and decrease another asset b. decrease assets and decrease liabilities c. increase assets and increase equity d. increase assets and increase liabilities Which of the following transactions would decrease asset by RO 2000 and increase expense by RO 2000 a. The…An asset was purchased for RO 1,000 by making a cash payment of RO 200 while the remaining amount is on account. What would be the effect on total assets and total liabilities of the business? a. Assets decreased by RO 800 and liabilities decreased by RO 800 b. Assets increased by RO 800 and liabilities increased by RO 800 c. Assets decreased by RO 800 and liabilities increased by RO 800 d. Assets increased by RO 800 and liabilities decreased by RO 800Thorpe Corporation purchases a new delivery truck and signs a note payable at the truckdealership for the total cost. The impact of this transaction on Thorpe Corporationa. increases assets and decreases stockholders’ equity.b. decreases assets and increases liabilities.c. increases assets and increases liabilities.d. increases assets and increases stockholders’ equity.