Anna Johnson has set up a business. Her transactions are as follows: (16 Marks) She...

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Anna Johnson has set up a business. Her transactions are as follows: (16 Marks) • She borrows $30,000 cash to set up the business • She purchases a computer using the business bank account for $3500. At the end of the first week of trading, she banks $8,000 for services provided and pays business expenses of $2,000. She pays salary to the driver amounting to $1,000. • Purchased office furniture using the business bank account $4,500. • Anna takes $200 cash from the business to pay for utility bills • She draws $700 for personal expenses. • Show the accounting equation as at the end of the first week in the space below . . Show the accounting equation as at the end of the first week in the space below. Assets Total $ $ = = Liabilities Total $ $ + Proprietorship Total 69 $ (b) Briefly discuss the important factors that might persuade a partnership to convert to a company form of business structure. (4 Marks) (c) Briefly outline what you believe to be are the most important objectives for small business owners. (5 Marks) Anna Johnson has set up a business. Her transactions are as follows: (16 Marks) • She borrows $30,000 cash to set up the business • She purchases a computer using the business bank account for $3500. At the end of the first week of trading, she banks $8,000 for services provided and pays business expenses of $2,000. She pays salary to the driver amounting to $1,000. • Purchased office furniture using the business bank account $4,500. • Anna takes $200 cash from the business to pay for utility bills • She draws $700 for personal expenses. • Show the accounting equation as at the end of the first week in the space below . . Show the accounting equation as at the end of the first week in the space below. Assets Total $ $ = = Liabilities Total $ $ + Proprietorship Total 69 $ (b) Briefly discuss the important factors that might persuade a partnership to convert to a company form of business structure. (4 Marks) (c) Briefly outline what you believe to be are the most important objectives for small business owners. (5 Marks)

Answer rating: 100% (QA)

Assets Liabilities Proprietorship 30500 0 38500 Computer 3500 Office furniture 4500 Total 0 38500 ... View the full answer