The following transactions relate to Xolani Spark’s new electrical business, Xolani Electrical, for the month of February 2013:On 1 st February, Xolani Spark deposited RS 30 000 cash into a bank account in the name of the business as part of his capital contribution.Xolani transferred a vehicle, with a book value of RS 90 000, into the name of the business as the second part of his capital contribution (on 1st February).Two days later he took out a loan with Beep Bank to the value of RS 5 000. The funds/ proceeds from the loan were received the same day.On 5th February he bought tools to the value of RS 10 000 and a stepladder for RS 2 000. These items, to be used as his electrical equipment, were paid for in cash.On 7th February he repaired an air-conditioning system for a customer and received RS 8 000 cash in exchange for his services.Gamma Ltd requested Xolani to install a security lighting system to the value of RS 22 000 for which they paid him RS 12 000 upfront on the 10th February, being the day he started and completed the installation. It was agreed that Gamma limited would settle the balance of its account at the end of March.Xolani hired a hydraulic lift on the 11th February to assist him with a job. He paid the hiring fee of RS 2 000 in cash.Xolani needed to buy stock of wires, connectors and switches which cost him RS 6000 from Electro Ltd on 11th February. He bought these on credit.On 25th he paid his workshop rent of RS 3 000 and RS 1 000 for his mobile phone contract.On 27th February Xolani paid the first installment of RS 500 on his loan. (Ignore interest.)He paid his assistant RS 5000 as a salary on 27th February.On 27th February Xolani paid Electro Ltd RS 2000 towards his outstanding account.Xolani withdrew RS 7000 from the business account on the 29th of February for his personal living expenses.Depreciation on the vehicle (per transaction ‘b’) has not yet been accounted for. Xolani estimated that he could use the vehicle (in transaction ‘b’) for three years (with no residual value) in order to calculate the annual depreciation. He decided to adopt the straight-line method and needed to record the depreciation monthly. REQUIREDPrepare a worksheet and Tell the Profit or Loss and the Total Balance Sheet Value of Assets

Journal entries are the transactions that are recorded in the primary book. They are chronological…

Answered: Prepare a worksheet and Tell the Profit…

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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The following transactions relate to Xolani Spark’s new electrical business, Xolani Electrical, for the month of February 2013: On 1 st February, Xolani Spark deposited RS 30 000 cash into a bank account in the name of the business as part of his capital contribution. Xolani transferred a vehicle, with a book value of RS 90 000, into the name of the business as the second part of his capital contribution (on 1st February). Two days later he took out a loan with Beep Bank to the value of RS 5 000. The funds/ proceeds from the loan were received the same day. On 5th February he bought tools to the value of RS 10 000 and a stepladder for RS 2 000. These items, to be used as his electrical equipment, were paid for in cash. On 7th February he repaired an air-conditioning system for a customer and received RS 8 000 cash in exchange for his services. Gamma Ltd requested Xolani to install a security lighting system to the value of RS 22 000 for which they paid him RS 12 000 upfront on the…
Prepare a worksheet and Tell the Profit or Loss and the Total Balance Sheet Value of Assets. The following transactions relate to Xolani Spark’s new electrical business, Xolani Electrical, for the month of February 2013: On 1 st February, Xolani Spark deposited RS 30 000 cash into a bank account in the name of the business as part of his capital contribution. Xolani transferred a vehicle, with a book value of RS 90 000, into the name of the business as the second part of his capital contribution (on 1st February). Two days later he took out a loan with Beep Bank to the value of RS 5 000. The funds/ proceeds from the loan were received the same day. On 5th February he bought tools to the value of RS 10 000 and a stepladder for RS 2 000. These items, to be used as his electrical equipment, were paid for in cash. On 7th February he repaired an air-conditioning system for a customer and received RS 8 000 cash in exchange for his services. Gamma Ltd requested Xolani to install a security…
on 1st January 2002 Ali started business with a capital of Rs. 20,000 and his transaction of the month were as follows:- Jan 03 Received cash from kamal Rs 200 Jan 05 Paid salaries Rs 300 Jan 08 Purchase furniture from Kashif Rs 1000 Jan 11 Purchases building for cash Rs.9000 Jan 13 Purchase goods from Hasan Rs.1500 Jan 17 sold goods for cash Rs.900 Jan 19 Draw cash for private expenses Rs100 Jan 25 Received from rahim and sons RS 590 against the payment of Rs600. Required: - Journalizing the above transaction and prepare the ledger & trial balance
Below are the transactions for Alex in Jan 2019: 1 Alex commenced business by depositing cash RM80,000 in the bank as capital 4 A machine was purchased and paid for with company cheque for RM42,000 8 Alex purchased goods for resale amounting to RM17,500 on credit 12 Alex made a cash sales of RM4,800; cost of good sold was RM2,600 16 Alex received a bank loan of RM30,000, the money was credited to the business bank account 20 Alex brought in his personal car for business use, the car was valued at RM65,000 23 Alex purchased goods for resale amounting to RM35,600, he paid the supplier by cheque 27 Alex paid supplier RM17,000 for the goods purchased on 8 Jan 2018, discount received RM500 30 Alex bought a computer for RM5,200 by cheque Required: Prepare the accounting equation for the month of January 2019.
Taehyung started operating a service proprietorship on April 1, 2021 with an initial cash investment of P100,000. The business provided P58,500 of services in April and received full payment in May. The business incurred expenses of P20,300 in April which were paid in June. During May, Taehyung drew P4,300 against his capital account. What was the income to be reported for the 2 months ended May 2021 under cash basis?
The following transactions relates to Joshua Woods, a sole trader, during his first month of business: Date Transaction details 01-Sep Started business by investing $10,000 from personal savings into a business' bank account and Computer Equipment worth $7,500. 02-Sep Purchased furniture from LEO Ltd for $5,000 paying by cheque. 04-Sep Purchased goods for resale from BELL Ltd on credit for $3,100. 05-Sep Took $1,000 from the bank account for cash use. 07-Sep Purchased goods for resale on credit from Taylor for $2,800 08-Sep Credit sales to Adrian and Evans for $3,500 and $2,200 respectively. 09-Sep Cash sales $700 09-Sep Returned goods to BELL worth $350 11-Sep Cash sales $1,200. 11-Sep Purchased goods for resale from Jaime paying by cash $1,200 12-Sep Paid fuel expenses $1,100 by cash. 13-Sep Evans returned goods amounting to $650. 14-Sep Adrian paid $750 in cash to her account. 15-Sep Sold goods…
The following transactions relates to Joshua Woods, a sole trader, during his first month of business: Date Transaction details 01-Sep Started business by investing $10,000 from personal savings into a business' bank account and Computer Equipment worth $7,500. 02-Sep Purchased furniture from LEO Ltd for $5,000 paying by cheque. 04-Sep Purchased goods for resale from BELL Ltd on credit for $3,100. 05-Sep Took $1,000 from the bank account for cash use. 07-Sep Purchased goods for resale on credit from Taylor for $2,800 08-Sep Credit sales to Adrian and Evans for $3,500 and $2,200 respectively. 09-Sep Cash sales $700 09-Sep Returned goods to BELL worth $350 11-Sep Cash sales $1,200. 11-Sep Purchased goods for resale from Jaime paying by cash $1,200 12-Sep Paid fuel expenses $1,100 by cash. 13-Sep Evans returned goods amounting to $650. 14-Sep Adrian paid $750 in cash to her account. 15-Sep Sold goods…
Mr. Igiria started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare final accounts for the year ended December 31, 2018. Amount Kshs. Receipt from debtors. 57,500 Cash sales 45,000 Cash purchases 25,000 Wages paid 5,000 Salaries to staff…
Mr. Igiria started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare final accounts for the year ended December 31, 2018. Amount Kshs. Receipt from debtors. 57,500 Cash sales 45,000 Cash purchases 25,000 Wages paid 5,000 Salaries to staff…
Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare final accounts for the year ended December 31, 2018.Accounts from Incomplete Records   Amount Kshs.Receipt from debtors. 57,500Cash sales 45,000Cash purchases 25,000Wages paid 5,000Salaries to staff…
Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare final accounts for the year ended December 31, 2018. Accounts from Incomplete Records                                                                                                   Amount Kshs. Receipt from debtors.                                                                       57,500 Cash sales                                                                                         45,000 Cash purchases                                                                                 25,000 Wages paid                                                                                        5,000 Salaries to staff…
Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During the year he further introduced Kshs. 20,000 in the business by opening a bank account. From the following information extracted from his books, you are required to prepare final accounts for the year ended December 31, 2018.Accounts from Incomplete Records   Amount Kshs.Receipt from debtors. 57,500Cash sales 45,000Cash purchases 25,000Wages paid 5,000Salaries to staff…

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