Gerald owns a shoe shop, Gingko Enterprises. The entity uses the perpetual inventory system to manage...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gerald owns a shoe shop, Gingko Enterprises. The entity uses the perpetual inventory system to manage its inventory. All inventories sold for cash are sold at 42% markup on cost. Despite credit checks, credit sales have historically resulted in delayed payments by customers. Owing to this higher cost of credit, Gerald decided that all credit sales will carry a 50% markup on cost. Gingko Enterprises is not registered as a VAT vendor, as the annual tumover is not expected to exceed R1 000 000. The entity also decided not to voluntary register for VAT. All goods (trading stock as well as any other goods) exceeding R8 500 are purchased on credit Credit terms have been agreed to by all suppliers. Purchases below the value of RS 500 are paid immediately. Assume that the bank has a favourable balance The following transactions took place during January 2021: 1. Gerald increased his capital contribution from R50 000 to R150 000. 2. Bought machinery on credit from Machin for RB1 235 3. Issued a cheque of R250 to the municipality for a trade licence. 4. Bought a laptop from Matrix for R7 999. 5. 6. 7. 8: Purchased stationery and cartridges from CNA for R2 180 Bought merchandise from Vellie Wholesalers, R6 513 Cash sales of goods, R18 176. Merchandise sold on credit to E Heinz, RS 250 Paid the telephone account, R3 506 Purchased delivery scooter from Vespa, R30 599. 9. 10. 11. Transferred R2 605 to Machin, being the first instalment on their account. 12. Paid salaries for the month, R7 500. Required: Analyse the transactions above for Gingko Enterprises for January 2021 in the accounting equation by using the table below. Example: Gingko Enterprises pays the local newspaper for the sales advertisement placed in the local community brochure-R1 650 E.g. ASSETS DR. CR- 1650 = EQUITY DR- 1650 CR. ♦ . DR- BILITIES CR. Gerald owns a shoe shop, Gingko Enterprises. The entity uses the perpetual inventory system to manage its inventory. All inventories sold for cash are sold at 42% markup on cost. Despite credit checks, credit sales have historically resulted in delayed payments by customers. Owing to this higher cost of credit, Gerald decided that all credit sales will carry a 50% markup on cost. Gingko Enterprises is not registered as a VAT vendor, as the annual tumover is not expected to exceed R1 000 000. The entity also decided not to voluntary register for VAT. All goods (trading stock as well as any other goods) exceeding R8 500 are purchased on credit Credit terms have been agreed to by all suppliers. Purchases below the value of RS 500 are paid immediately. Assume that the bank has a favourable balance The following transactions took place during January 2021: 1. Gerald increased his capital contribution from R50 000 to R150 000. 2. Bought machinery on credit from Machin for RB1 235 3. Issued a cheque of R250 to the municipality for a trade licence. 4. Bought a laptop from Matrix for R7 999. 5. 6. 7. 8: Purchased stationery and cartridges from CNA for R2 180 Bought merchandise from Vellie Wholesalers, R6 513 Cash sales of goods, R18 176. Merchandise sold on credit to E Heinz, RS 250 Paid the telephone account, R3 506 Purchased delivery scooter from Vespa, R30 599. 9. 10. 11. Transferred R2 605 to Machin, being the first instalment on their account. 12. Paid salaries for the month, R7 500. Required: Analyse the transactions above for Gingko Enterprises for January 2021 in the accounting equation by using the table below. Example: Gingko Enterprises pays the local newspaper for the sales advertisement placed in the local community brochure-R1 650 E.g. ASSETS DR. CR- 1650 = EQUITY DR- 1650 CR. ♦ . DR- BILITIES CR.
Expert Answer:
Answer rating: 100% (QA)
The transactions for Gingko Enterprises for January 2021 in the accounting equation are as follows A... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
An earthquake-produced surface wave can be approximated by a sinusoidal transverse wave. Assuming a frequency of 0.50 Hz (typical of earthquakes, which actually include a mixture of frequencies),...
-
The hypergeometric distribution can be approximated by either the binomial or the Poisson distribution. (Of course, it can be approximated by other distributions, but in this exercise we will...
-
A measure of real interest rates can be approximated by the Treasury Inflation-Indexed Security, or TIIS. Go to the St. Louis Federal Reserve FRED database, and find data on the five-year TIIS (FII5)...
-
A company conducts a Security model workshop to review configuration options. The company uses Microsoft Entra ID to control access and permissions within multiple corporate applications. When users...
-
What is the role of business ethics?
-
A model for Mexico's population growth (Table 4) is F(t) = 1.49t + 38.8 where t is years since 1960. Find and graph the percentage rate of change of f(t) for 0 ¤ t ¤ 50. Table 4 Year...
-
The transition obligation in accounting for postretirement health care benefits is the difference between: a. The accumulated postretirement obligation and the value of the assets funded to date. b....
-
After six months of study, much political arm wrestling, and some serious financial analysis, Dr. Martin Starr, president of Southwestern University, had reached a decision. To the delight of its...
-
Wal-Mart has 138 million weekly customers. In 2006 Wal-Mart had annual sales of $312 billion and net income of more than $11.2 billion. There are about 5,300 Wal-Mart stores worldwide. During a...
-
Use the data in MURDER.RAW for this exercise. The variable mrdrte is the murder rate, that is, the number of murders per 100,000 people. The variable exec is the total number of prisoners executed...
-
Assume that you are tasked with conducting research for the GGC Administration. Specifically, your job is to administer a survey to help the Administration decide whether or not GGC should begin to...
-
If 6 of 18 new buildings in a city violate the building code, what is the probability that a building inspector, who randomly selects 4 of the new buildings for inspection, will catch (a) none of the...
-
Why do sample surveys have predetermined margins of error?
-
Nan-Clean is a newly developed cleaning liquid for milk bottles that uses special enzymes to remove dirt effectively. Nan-Clean has been positioned as a product that is made of natural ingredients...
-
How does laddering as a technique help in qualitative research?
-
A newly established noodle house has suffered low sales lately. The owner of the noodle house wants to research to collect information that will help him solve the problem at hand and design a...
-
correct this general ledger Type Dr Cr C. Asset Bank 7250.00 Income Canteen Income 4800.00 F. Asset Clothes and Equipment 6600.00 Income Coaching Clinic 70.00 C. Liability Commmissioner for Tax...
-
In the synthesis of the keto acid just given, the dicarboxylic acid decarboxylates in a specific way; it gives Explain. HO rather than HO
-
Two people each toss a fair coin n times. Find the probability that they will toss the same number of heads.
-
Let X1,..., Xn be a random sample from a population with pdf f(x|) = 1/2, - < x < , > 0. Find, if one exists, a best unbiased estimator of .
-
If the random variable X has pdf find a monotone function it(x) such that the random variable Y = u(X) has a uniform(0,1) distribution. f(z)-(F 1
-
The U-tube in Fig. P2.160 rotates at \(2.0 \mathrm{rev} / \mathrm{sec}\). Find the absolute pressures at points \(C\) and \(B\) if the atmospheric pressure is 14.696 psia. Recall that \(70{ }^{\circ}...
-
A failure report states that a safety transmitter signaled a high pressure in a vessel and initiated a trip. Other pressure measurements did not indicate any high pressure. A diagnostic in the safety...
-
Each of the 50 transmitters in identical service had a test time of 7,640 hours. During this period, no failures occurred. Describe the procedure for calculating the failure rate.
Study smarter with the SolutionInn App