Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part-time at Rosebank College. Willow Traders uses the perpetual inventory system to record inventory transactions. Mark-up is 20% on cost on all good sold. VAT can be ignored on all transactions. The following transactions took place in the month of August 2020: NO DATE TRANSACTION 2.1 1 Owner contributed a delivery vehicle valued at R200 000 2.2 4 Purchased goods for cash R10 000 and received a trade discount of 5% 2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers 2.4 15 Paid R300 cash for an advert in the local newspaper 2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees are sold at R75 each 21 2021 Q.2.1 Analyse each of the above transactions and complete the table as follows: Example: Paid R200 for Telephone Account NO ACCOUNT ACCOUNT ASSETS OWNER'S LIABILITIES DEBITED CREDITED EQUITY Example Telephone Bank -200 -200 Show the double entry (debit and credit general ledger names), as well as the effect on the accounting equation, for each transaction, in the columns provided. Ensure that you use the + and - signs to show the effect on the equation as marks will be allocated for these. Round to the nearest rand.
Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part-time at Rosebank College. Willow Traders uses the perpetual inventory system to record inventory transactions. Mark-up is 20% on cost on all good sold. VAT can be ignored on all transactions. The following transactions took place in the month of August 2020: NO DATE TRANSACTION 2.1 1 Owner contributed a delivery vehicle valued at R200 000 2.2 4 Purchased goods for cash R10 000 and received a trade discount of 5% 2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers 2.4 15 Paid R300 cash for an advert in the local newspaper 2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees are sold at R75 each 21 2021 Q.2.1 Analyse each of the above transactions and complete the table as follows: Example: Paid R200 for Telephone Account NO ACCOUNT ACCOUNT ASSETS OWNER'S LIABILITIES DEBITED CREDITED EQUITY Example Telephone Bank -200 -200 Show the double entry (debit and credit general ledger names), as well as the effect on the accounting equation, for each transaction, in the columns provided. Ensure that you use the + and - signs to show the effect on the equation as marks will be allocated for these. Round to the nearest rand.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 14E: On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a...
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Transcribed Image Text:Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part-time at
Rosebank College. Willow Traders uses the perpetual inventory system to record inventory
transactions. Mark-up is 20% on cost on all good sold.
VAT can be ignored on all transactions.
The following transactions took place in the month of August 2020:
NO
DATE
TRANSACTION
2.1
1
Owner contributed a delivery vehicle valued at R200 000
2.2
4
Purchased goods for cash R10 000 and received a trade discount of
5%
2.3
6
Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers
2.4
15
Paid R300 cash for an advert in the local newspaper
2.5
20
Violet took a rose tree as a birthday present for her sister. Rose trees
are sold at R75 each
21
2021
Q.2.1 Analyse each of the above transactions and complete the table as follows:
Example: Paid R200 for Telephone Account
NO
ACCOUNT
ACCOUNT
ASSETS
OWNER'S
LIABILITIES
DEBITED
CREDITED
EQUITY
Example
Telephone Bank
-200
-200
Show the double entry (debit and credit general ledger names), as well as the
effect on the accounting equation, for each transaction, in the columns
provided. Ensure that you use the + and - signs to show the effect on the
equation as marks will be allocated for these.
Round to the nearest rand.
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