Mzanzi (Pty) Ltd was established June 1, 2016, by two students majoring in education. The two entrepreneurs provided entertainment for children’s birthday parties to supplement their college career. The following transactions occurred during the first month of operations: June 1: Received contribution of R6,000 from each of the two principal owners of the new business in exchange for ordinary shares in the business. June 1: Purchased lighting equipment for R300 on an open account. The company has 30 days to pay for the equipment. June 5: Registered as a vendor with the city and paid the R25 monthly fee. June 9: Purchased an event tent to set up at parties for R2,400 cash. June 10: Purchased R100 in miscellaneous supplies on account. The company has 30 days to pay for the supplies. June 15: Paid a R75 bill from local printer for advertisement signs. June 17: Customers paid for services with cash of R1,500. June 24: Billed the local park district R800 entertainment provided to a summer camp. The park district is to pay one-half of the bill within five working days and the rest within 30 days. June 29: Received 50% of the amount billed to the park district. June 30: Customers paid cash for parties of R2,000. June 30: Paid wages of R300 to a friend who helped over the weekend. June 30: Paid the balance due on the supplies. Required: 1. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Use the following format. Identify each transaction with the date. Assets = Liabilities + Owners Equity Date Cash Accts. Rec. equipment supplies Accts. Pay. Ordinary Shares Ret. earnings
Mzanzi (Pty) Ltd was established June 1, 2016, by two students majoring in education. The two
entrepreneurs provided entertainment for children’s birthday parties to supplement their college
career. The following transactions occurred during the first month of operations:
June 1: Received contribution of R6,000 from each of the two principal owners of the new business
in exchange for ordinary shares in the business.
June 1: Purchased lighting equipment for R300 on an open account. The company has 30 days to
pay for the equipment.
June 5: Registered as a vendor with the city and paid the R25 monthly fee.
June 9: Purchased an event tent to set up at parties for R2,400 cash.
June 10: Purchased R100 in miscellaneous supplies on account. The company has 30 days to pay
for the supplies.
June 15: Paid a R75 bill from local printer for advertisement signs.
June 17: Customers paid for services with cash of R1,500.
June 24: Billed the local park district R800 entertainment provided to a summer camp.
The park district is to pay one-half of the bill within five working days and the rest within 30
days.
June 29: Received 50% of the amount billed to the park district.
June 30: Customers paid cash for parties of R2,000.
June 30: Paid wages of R300 to a friend who helped over the weekend.
June 30: Paid the balance due on the supplies.
Required:
1. Prepare a table to summarize the preceding transactions as they affect the
equation.
Assets = Liabilities + Owners Equity
| Date | Cash | Accts. Rec. | equipment | supplies | Accts. Pay. | Ordinary Shares | Ret. earnings |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
