On 1 September 20x1, Robert Shaw established an enterprise under the name Shaw Agencies. Transactions for the

Question:

On 1 September 20x1, Robert Shaw established an enterprise under the name Shaw Agencies.

Transactions for the month:

1. A business bank account was opened with a deposit of R24 000 from Robert, representing cash received from the investment of capital.

2. Purchased equipment (desk, chairs, filing cabinet, and so on) for R1 800, paid R1 000 in cash, with the balance on account.

3. Purchased supplies (stationery, stamps, pencils, ink) that cost R120 for cash. Treat as an asset at acquisition date.

4. Paid office rent for the month of R2 500.

5. Paid R300 to a payable.

6. Received R1 400 as sales commissions.

7. Paid car expenses for the month of R160, and miscellaneous expenses of R90.


You are required to:

Record the above transactions as debit/credit entries in the three accounts of the accounting equation.

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

Step by Step Answer:

Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

Question Posted: