During the year ended 30 June 2016, the following information was recorded in the company's accounts of

Question:

During the year ended 30 June 2016, the following information was recorded in the company's accounts of Borg Limited.
a. Issue share capital of $500 000. 

b. Credit sales, $300000. 

c. Cash sales, $12 000.
d. Collections from accounts receivable, $300 000. 

e. Purchases of inventory on credit, $140 000. 

f. Payments of accounts payable, $100 000. 

g. Cost of goods sold, $ 160 000. 

h. Wages expense, $ 180 000, not yet paid, 

i. Wages paid, $44 000 (reduce wages payable), 

j. Cash dividends, $40 000, declared and paid.
What is the separate effect of each of the transactions on net profit and total assets?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting An Integrated Approach

ISBN: 9780170349680

6th Edition

Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

Question Posted: