Question 3 A businessman has bought the following items for his business uses: Machinery RM100,000 Computers RM50,000 Pen RM10 A4 paper rim RM15 Printer cartridge RM20 Required: (i) Apply the materiality concept to explain how should the above items be recorded in books of accounts? (ii) Explain TWO (2) benefits by applying the materiality concept on the accounting treatment as (i).

Question 3 A businessman has bought the following items for his business uses: Machinery RM100,000 Computers RM50,000 Pen RM10 A4 paper rim RM15 Printer cartridge RM20 Required: (i) Apply the materiality concept to explain how should the above items be recorded in books of accounts? (ii) Explain TWO (2) benefits by applying the materiality concept on the accounting treatment as (i).

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter3: The Double-entry Framework

Section: Chapter Questions

Problem 6SEB: TRANSACTION ANALYSIS George Atlas started a business on June 1,20--. Analyze the following...

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Problem 2-56A Analyzing Transactions Luis Madero, after working for several years with a large public accounting firm decided to open his own accounting service. The business is operated as a corporation under the name Madero Accounting Services. The following captions and amounts summarize Maderos balance sheet at July 31, 2019. The following events occurred during August 2019. Issued common stock to Ms. Garriz in exchange for $15,000 cash. Paid $850 for first months rent on office space. Purchased supplies of $2,250 on credit. Borrowed $8,000 from the bank. Paid $1,080 on account for supplies purchased earlier on credit. Paid secretarys salary for August of $2,150. Performed amounting services for clients who paid cash upon completion of the service in the total amount of $4,700. Used $3,180 of the supplies on hand. Perfumed accounting services for clients on credit in the total amount of $1,920. Purchased $500 in supplies for cash. Collected $1,290 cash from clients for whom services were performed on credit. Paid $1,000 dividend to stockholders. Required: Record the effects of the transactions listed above on the accounting equation. Use the format given in the problem, starting with the totals at July 31, 20l9. Prepare the trial balance at August 31, 2019.
Problem 2-62B Comprehensive Problem Mulberry Services sells electronic data processing services to firms too Email to own their own computing equipment. Mulberry had the following amounts and amount balances as of January 1, 2019: During 2019, the following transactions occurred (the events described below are aggregations of many individual events): During 2019, Mulberry sold $690,000 of computing services, all on credit. Mulberry collected $570,000 from the credit sales in Transaction a and an additional $129,000 from the accounts receivable outstanding at the beginning of the year. Mulberry paid the interest payable of $8,000. A Wages of $379,000 were paid in cash. Repairs and maintenance of $9,000 were incurred and paid. The prepaid rent at the beginning of the year was used in 2019. In addition, $28,000 of computer rental costs were incurred and paid. There is no prepaid rent or rent payable at year-end. Mulberry purchased computer paper for $13,000 cash in late December. None of the paper was used by year-end. Advertising expense of $26,000 was incurred and paid. Income tax of $10,300 was incurred and paid in 2019. Interest of $5,000 was paid on the long-term loan. (Continued) Required: Establish a T-account for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the T-accounts. Analyze each transaction; Journalize as appropriate. (Note: Ignore the date because these events are aggregations of individual events.) Post your journal entries to the T-accounts. Add additional T-accounts when needed. Use the ending balances in the T-accounts to prepare a trial balance.
ANALYSIS OF T ACCOUNTS Richard Gibbs began a business called Richards Shoe Repair. 1. Create T accounts for Cash; Supplies; Richard Gibbs, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts: (a) Invested cash in the business, 6,500. (b) Purchased supplies for cash, 700. (c) Paid utility bill, 2,700. 2. Foot the T account for cash and enter the ending balance.
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.
TRANSACTION ANALYSIS George Atlas started a business on June 1,20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side. (a ) Invested cash in the business, 7,000. (b) Purchased equipment for cash, 900. (c) Purchased equipment on account, 1,500. (d) Paid cash on account for equipment purchased in transaction (c), 800. (e) Withdrew cash for personal use, 1,100. FOOT AND BALANCE T ACCOUNTS Foot and balance the T accounts prepared in Exercise 3-5B if necessary.
ANALYSIS OF T ACCOUNTS Roberto Alvarez began a business called Robertos Fix-It Shop. 1. Create T accounts for Cash; Supplies; Roberto Alvarez, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts: (a) Invested cash in the business, 6,000. (b) Purchased supplies for cash, 51,200. (c) Paid utility bill, 900. 2. Foot the T account for cash and enter the ending balance.
Question 3A businessman has bought the following items for his business uses: Machinery RM100,000Computers RM50,000Pen RM10A4 paper rim RM15Printer cartridge RM20 Required: (iii) State an accounting concept whichever applicable that requires an accounting adjustment in the presentation of financial statements.
Q10. a) Show the effects of the following transactions on the accounting equation.a. Owner invested $ 12.000 cash in the business.b. Purchased office supplies by paying $ 65 cash.c. Performed service for a client on account, $ 950.d. Purchased computers for the business for $ 1.300 on account.e. Received cash from the client (c) above, $ 900.b) 1) Journalize the following transactions2) Ledger posting for the following transaction.a. Owner invested $ 12.000 cash in the business.b. Purchased office supplies by paying $ 65 cash.c. Performed service for a client on account, $ 950.d. Purchased computers for the business for $ 1.300 on account.e. Received cash from the client (c) above, $ 900.c) Critically analyze the statement “Owners’ Equity is a liability for business, which in long run allbusinesses try to increase over time? Please state whether you agree or disagree with the statement?
II. Computational. Look for the balances of the different accounts using the following transactions: A) Invested P50,000 in the business. B) Bought supplies on account amounting to P9,850. C) Received 7,500 cash from clients on account. D) Billed a client for the service rendered P6,000. E) Hired an assistant at a salary of P7,000 per month. Look for the ending of cash. Look for the ending balanceofcash.
1. CtSha Enterprise started a new business on 1 of September 2020. You are required to record the following transaction by using accounting equation (tabular analysis format):Sept 2020 Particulars1 Owner invested RM50,000 cash to start a photocopy business.3 Owner purchased a photocopy machine costing RM1,000 cash.5 Owner withdrew RM10,000 cash for personal use.6 Owner make a loan RM20,000 from Combo Bank for the business purpose. 25 Owner paid off RM5,000 of the bank loan.26 Owner provided photocopy service for a school total RM3,000 ; then this business had received RM2,000 cash for the service whereby another RM1,000 they will pay after the photocopies complete.28 Owner paid RM500 cash for his employee’s salary, RM300 cash for utilities and RM200 cash for shop rental. 2. Calculate the missing figure:Owner Equity Liabilities AssetsRM RM RMBusiness A ? 45,000 79,500Business B 45,600 23,000 ?Business C 104,500 ? 163,700
Question 4. Muhammad, Hafiz and Fatima started their own business, Lighthouse for Safety and Security Services (LSSS) Inc. On January 1st, 2020, the following normal balances took place at the trial balance of LSSS. Accounts payable RM1,950 Accounts receivable RM13,500 Cash RM74,210 Common stock RM50,000 Land RM4000 Merchandise inventory (24 @ RM265; 1 @ RM260) = 6,620 Prepaid rent RM3,200 Retained earnings RM47,800 Salaries payable RM1,000 Supplies RM200 Unearned revenue RM980 The following transactions took place during 2020 for LSSS: LSSS paid the salaries payable from 2019. On May 1, 2020, LSSS established a RM100 petty cash fund to handle small expenditures. LSSS paid RM4,800 on May 1, 2020, for one year's lease on the company van in advance. LSSS paid RM7,200 on May 2, 2020, for one year's office rent in advance. LSSS purchased RM400 of supplies on account. LSSS purchased 100 alarm systems for RM28,000 cash during the year. Sold 102 alarm systems for RM57,120. All sales…
Question 1 The following transactions are extracted from the book of Idris Trading for the month of April: 1 Started the business with cash RM20,000 as capital. 4 Acquired tables and chairs RM2,400 for office use on credit term. 8 Purchased goods RM4,000 by cash. 11 Cash sales RM1,600. 12 Purchased goods from Baba Enterprise RM7,000 on credit term. 16 Credit sales of goods RM2,700. 18 Bought a van RM20,000 for business use. Cash RM10,000 paid and the remaining to be settled within two months. 23 A customer paid cash RM1,300 to settle his debts. 28 Cash RM2,200 paid to supplier. 29 Idris withdrew cash RM400 for personal usage. Required: Prepare the journal entries to show the double entries of all the transactions above using only General Journals.