FINAN 9E WPLMSCC+REEFCARD
9th Edition
ISBN: 9781119687078
Author: Kimmel
Publisher: WILEY C
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Toshib is struggling to understand the impact of certain business transactions on the financial statements. She has very little accounting knowledge and feels intimidated by all the accounting jargon thrown around by her accountant friends. One day around a braai she raised her frustrations and gave a list of transactions of which she doesn’t understand the impact on the financial statements. As she is a good friend of yours, you willingly offer your help and asked her to put her concerns in writing. The next morning a thank you note was delivered to your office with the following list of transactions she required clarity on:
1. On 1 July 20x9 I started the business by opening a bank account with R150 000 and transferred office furniture which I had from a previous venture with a second-hand value of R35 000.
2. During the first month the following transactions occurred:
2.1 Opened an account with Magna Suppliers and bought R200 000 merchandise.
2.2 Bought a delivery vehicle from Max…
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability.
fill in the blanks by rearranging the items that are wrong:
Balance Sheet
Payables $ 35 Inventories $50
Less accumulated depreciation 120 Receivables 35
Total current assets ___?____ Total current liabilities __?____
Long-term debt $350…
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability.
fill in the blanks by rearranging the items that are wrong:
Balance Sheet
Payables $ 35 Inventories $50
Less accumulated depreciation 120 Receivables 35
Total current assets ___?____ Total current liabilities __?____
Long-term debt $350…
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