Detail the impact of the following transactions on the accounting equation, by populating the table provided....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Detail the impact of the following transactions on the accounting equation, by populating the table provided. Document all calculations. Example: Purchase stationery of R50 from petty cash. Account debit Stationery 1. 2. 3. Account credit Asset Petty cash (R50) Account debit Equity (R50) A rental agreement, effective 1 April 2021, stipulates that the rental expense of R4 500 increases annually with 8% on 1 April. At financial year-end, 31 March 2023, the rental balance reported in the general ledger amounted to R63 568.80 (3) A motor vehicle, originally purchased for R320 000 on 1 December 2020, is depreciated at 20% on the diminishing depreciation method. The residual value was set at 25% of the purchase price. The vehicle was sold on 30 June 2023 for R275 000. Only record entries for the financial period 1 April 2023 to 30 June 2023. (9) Mr. Gizzi's account of R7 430 was handed over to the attorneys for collection during May 2022. The lawyers finalized the liquidation and distributed a final payout of 45c in the rand on 31 March 2023. The customer control account amounted to R55 700 prior distribution. The company adopted a policy to allow for a provision of doubtful debts of 12%. The allowance account had a balance of R 4 600 on 28 February 2023. The entries affecting March 2023 have not been recorded. (8) Account credit Liability Asset Equity Liability Detail the impact of the following transactions on the accounting equation, by populating the table provided. Document all calculations. Example: Purchase stationery of R50 from petty cash. Account debit Stationery 1. 2. 3. Account credit Asset Petty cash (R50) Account debit Equity (R50) A rental agreement, effective 1 April 2021, stipulates that the rental expense of R4 500 increases annually with 8% on 1 April. At financial year-end, 31 March 2023, the rental balance reported in the general ledger amounted to R63 568.80 (3) A motor vehicle, originally purchased for R320 000 on 1 December 2020, is depreciated at 20% on the diminishing depreciation method. The residual value was set at 25% of the purchase price. The vehicle was sold on 30 June 2023 for R275 000. Only record entries for the financial period 1 April 2023 to 30 June 2023. (9) Mr. Gizzi's account of R7 430 was handed over to the attorneys for collection during May 2022. The lawyers finalized the liquidation and distributed a final payout of 45c in the rand on 31 March 2023. The customer control account amounted to R55 700 prior distribution. The company adopted a policy to allow for a provision of doubtful debts of 12%. The allowance account had a balance of R 4 600 on 28 February 2023. The entries affecting March 2023 have not been recorded. (8) Account credit Liability Asset Equity Liability
Expert Answer:
Answer rating: 100% (QA)
Rental expense increasing annually On 1 April 2021 rental expense was R4500 On 1 April 2022 the rental expense increased by 8 R4500 108 R4860 On 1 Apr... View the full answer
Related Book For
Integrated Accounting
ISBN: 978-1285462721
8th edition
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
Posted Date:
Students also viewed these accounting questions
-
"How does an effective performance appraisal system contribute to employee development, motivation, and overall organizational success, and what key elements should be considered when designing and...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A stiff, straight, horizontal wire of length 25 cm and mass 20 g is supported by electrical contacts at its ends, but is otherwise free to move vertically upward. The wire is in a uniform, horizontal...
-
Pollen of the lisianthus plant requires a force 10 times that of the avocado pollen to be detached. If the lisianthus pollen has the same electric charge as does the avocado pollen, at what maximum...
-
please help me set up these accounts (tables) and explainmany thanks. Michael owns and manages a small business which sells organic beauty products to high street shops. Michael sells to the shops on...
-
Perform the following operations without a calculator. Simplify if possible. 1. \(3 \sqrt{15} \div(8 \sqrt{3})\) 2. \(14.7 \sqrt{135} \div(3 \sqrt{5})\).
-
Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2011. Patel also audited and reported on the Bellamy financial...
-
explain how they got 14.63. 2. Discuss the implications if the stock price is $60 when your options vest. Consider the strike price, option price at grant and stock price at vesting. When the stock...
-
The implementations of the methods addAll, removeAll, retainAll, toArray(), and toArray(T[]) are omitted in the MyList interface. Implement these methods. Test your new MyList class using the code at...
-
Question 1: Which of the seven Fundamental Principles does the module describe as "We bow to needs, but not rulers"? a) Impartiality b) Voluntary Service c) Independence d) Unity Question 2: Which of...
-
What are the emergent trends and best practices in organizational development, and how do they reflect evolving paradigms of talent management, leadership development, and organizational agility in...
-
On September 9, 2014, Apple announced its entry into the wearable computing market with the launch of the Apple Watch. The Apple Watch Team estimated a weekly demand function for the U.S. market (see...
-
1) Write down the input logic functions for three T flip-flops for 3-digit synchronous up-counter. 2) Write down the input logic functions for three T flip-flops for 3-digit synchronous down-...
-
One ball has the mass of 0. 5 kg another ball and velocity of 6m/s another ball has the mass 2 kg ball and has a velocity of 0 m/s. What is the velocity of ball 2 after the collision of the ball one...
-
Describe and analyze a situation highlighted Global Trends 2040 (NIC, 2021) that is of particular concern and where asking better questions might lead to a different strategy and outcome. Refer...
-
On what financial statement can you find the ending date of the company's accounting cycle? ANSWER Unselected Statement of Cash Flows Unselected Income Statement Unselected Balance Sheet Unselected I...
-
For a nonzero constant a, find the intercepts of the graph of (x 2 + y 2 ) 2 = a 2 (x 2 - y 2 ). Then test for symmetry with respect to the x-axis, the y-axis, and the origin.
-
The following transactions for Nielsen Architects occurred during December of the current year. Follow the step-by-step instructions to record the transactions, process the adjusting entries, and...
-
What steps must be taken to delete a payroll transaction already entered to prevent an employee from being paid?
-
From the college planner, what is the calculated annual college payments?
-
Is the Internal Revenue Code responsible for the backdating problem? Did Code Sec. 162(m), which restricts the deductibility of nonperformance-based executive compensation to \(\$ 1\) million, cause...
-
Go to the Securities and Exchange Commission's Internet site (sec.gov) and find a Litigation Release number that deals with each of the following issues. Give the Litigation Release number and write...
-
Determine whether the following are preventive (P), detective (D), or corrective (C) controls. a. Training b. Bank reconciliations c. Passwords d. Surprise cash count e. Quality circle team f. Job...
Study smarter with the SolutionInn App