Your late uncle Dr Acula has left you 100,000 Vampire Dollars to set up a business...

 

Transcribed Image Text:

Your late uncle Dr Acula has left you 100,000 Vampire Dollars to set up a business selling upcycled musical coffins, which are becoming very popular in your home country. Grow your business and develop your financial competence until you eventually list your business on the Transylvanian Stock Exchange. Record following business transactions occurred in December 2020 (using Debit and Credit), including the impact on accounting equation on 31 December 2020. 01/12, paid rent of $15,000 for the next three months of your business (0.5 marks) 02/12, your business bought 17 units of cello coffin at $4,000 each for cash. (0.5 marks) 15/12, Your customer ordered 15 units of cello coffin at the selling price of $5,000 each and paid 20% deposit. (0.5 marks) You have employed 2 staff at $3,100 each per month, paid in arrears. The business normally pays wages fortnightly. On 23 December, you paid your staff for the 14 days' work they have done up till 19 December. (0.5 marks) 30/12, Your business delivered all cello coffins and the customer received 15 units of cello coffin at the selling price of $5,000 each and each cello coffin costs $4,000. The customer is going to pay the remaining in January 2021. (1.5 marks) 31/12, the accountant needs to do relevant adjusting journal entries. (0.5+1=1.5 marks) (hint: think what shall be adjusted as time goes by) Your late uncle Dr Acula has left you 100,000 Vampire Dollars to set up a business selling upcycled musical coffins, which are becoming very popular in your home country. Grow your business and develop your financial competence until you eventually list your business on the Transylvanian Stock Exchange. Record following business transactions occurred in December 2020 (using Debit and Credit), including the impact on accounting equation on 31 December 2020. 01/12, paid rent of $15,000 for the next three months of your business (0.5 marks) 02/12, your business bought 17 units of cello coffin at $4,000 each for cash. (0.5 marks) 15/12, Your customer ordered 15 units of cello coffin at the selling price of $5,000 each and paid 20% deposit. (0.5 marks) You have employed 2 staff at $3,100 each per month, paid in arrears. The business normally pays wages fortnightly. On 23 December, you paid your staff for the 14 days' work they have done up till 19 December. (0.5 marks) 30/12, Your business delivered all cello coffins and the customer received 15 units of cello coffin at the selling price of $5,000 each and each cello coffin costs $4,000. The customer is going to pay the remaining in January 2021. (1.5 marks) 31/12, the accountant needs to do relevant adjusting journal entries. (0.5+1=1.5 marks) (hint: think what shall be adjusted as time goes by)

Answer rating: 100% (QA)

Certainly lets record these transactions using doubleentry accounting and consider the impact on the accounting equation as of December 31 2020 1 Dece... View the full answer