Please help me answer this question, VAT - 15% Damask Traders trades in roses. The business is owned by Rose Nasrin and started trading recentlyand on 1 September 2021, the following balances appeared in the trial balance.CapitalR25 000Bank (unfavourable)R4 000InventoryR37 000LoanR5 000SalesR11 000Cost of salesR8 000Damask is not registered for VAT, uses a perpetual inventory system and entered into the followingtransactions during September 2021.DateDetails1Sold some roses, with a cost price of R12 000 for R18 000. Customer paid in cash.2Paid rent for the premises via EFT, R6 000.Purchased some equipment on credit from Pavlon suppliers, R9 00025Paid the newly employed nursery manager her monthly salary, R6 500.30The bank statement reflected bank charges of R50, interest on the overdraft of R14and interest on the favourable balance of R3 for the month.Required:Calculate Rose Nasrin's equity in her business on 30 September 2021, by calculating the openingbalances and showing the effect of each individual transaction on the accounting equation. Clearlyindicate whether the account will be debit/credited when analysing the transactions.Example: Owner deposit R5 000 directly into the bank account as additional capital contribution.DateAssets =Owner's EquityLiabilitiesе.g.Dr BankCr Capital+ 5 000+ 5 000

Owners Equity The calculation of owners equity is to the beginning balance of equity plus net income…

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Business

Accounting

Please help me answer this question, VAT - 15%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PA: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions...

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Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and income tax purposes. At the end of 2019, the following information was obtained from the inventory records: Required: 1. Prepare the necessary adjusting journal entry assuming that Grimstad converts the accounts to LIFO at the end of 2019. 2. Indicate how Grimstad would disclose the inventory value on its comparative balance sheets prepared at the end of 2019. 3. Next Level By how much would Grimstads cost of goods sold differ in 2019 if it used FIFO for external reporting?
At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.
Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company discovers each error 2 years after it is made and it has closed the books for the second year. Ignore income taxes. E22-13: The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-vear life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest.
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
Queen Enterprises is a furniture wholesaler. Queen hired a new accounting clerk on January 1 of the current year. The new clerk does not understand accrual accounting and recorded the transac-tions below based on when cash receipts and disbursements changed hands rather than when the transaction occurred. Queen uses a perpetual inventory system, and its accounting policy calls forinventory purchases to be recorded net of any discounts offered.Jan. 7 Paid Hardwoods Forever Inc. $4,900 for furniture that it received on December 20.(This purchase was recorded as a debit to Inventory and a credit to Accounts Payableon December 20 of last year, but the accounting clerk ignores that fact.)Dec. 23 Received furniture from Koos Hoffwan Co. for $10,000; terms 2/10, n/30.Dec. 26 Sold furniture to Beige Chipmunk Inc. for $15,000; terms 1/10, n/30. The cost of thefurniture to Queen was $12,250.Instructionsa. As a result of the accounting clerk’s errors, compute the amount by which the…
On January 13, 2021, BlossomCorporation discovered that goods in transit from a supplier of $114,150 with terms FOB shipping point were not included in the inventory count at the end of the year, December 31, 2020, although the purchase had been recorded in the accounting records. The goods were shipped on December 29, 2020 and received by Blossom on January 10, 2021. Prepare any correcting journal entry required, assuming Blossom uses a periodic inventory system, the books are closed for 2020 and ignore any income tax effects. (Credit account
Sandhill Electronics uses a perpetual inventory system which, at the company’s year-end December 31, 2020, indicated an inventory value of $1,037,950. A physical inventory count was conducted and it was determined that the inventory value was $995,675.Prepare the journal entry to record the difference between the perpetual inventory record and the physical inventory count. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise in 2021 was recorded in 2020 instead. The physical inventory count at the end of 2020 was correct. Assume the company uses a periodic inventory system. Required:Prepare the journal entry needed in 2021 to correct the error. (Ignore income taxes.) (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Africa Traders is a registered VAT vendor and uses the periodic inventory system. Africa Traders buys and sells furniture and equipment for cash or on credit. On 1 March 2021, Africa Traders purchased furniture on credit from SA Suppliers to the amount of R29 560. On 27 April 2021, Africa Traders settled their account and received R1 165 discount for early settlement. On the same day Africa Traders purchased furniture on the clearance sale. The selling price of the furniture was R9 940 (excluding VAT). Africa Traders paid cash and received a further 8% cash discount on the selling price. Required: What amount will be recorded in the settlement discount received column of the cash payments journal of Africa Traders on 27 April 2021? NB: Instructions 1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72) 2. Use a full stop to indicate any decimals (eg: 1000.01) 3. You must enter cents even if it is 0 (eg .00) 4. Only show the amount, do not show the R…
April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered. - sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account. - A debtor account balance of sh 300 had not been included in the list of balance . - Cash received of sh. 750 had been entered in a personal account as sh. 570. - Discounts allowed totalling sh.100 had not been entered in the control account. - A personal account balance had been undercast by sh.200. - A contra item of sh.400 with the purchase ledger had not been entered in the control account. - A bad debt of…