Mr. Thomas commenced business on 1 March 2022. During the first month of the operation, the...

  

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Mr. Thomas commenced business on 1 March 2022. During the first month of the operation, the following events and transactions occurred. Date 1 4 14 25 28 28 29 Business Transactions Started business with cash in hand RM10,000, cash at bank RM20,000, machinery valued at RM40,000. Purchased goods RM9,000 on credit from Mery Enterprise Cash sales worth RM1,000 were paid directly into the bank. Purchase on credit from Melati Sdn Bhd worth RM5,000. Returned damaged goods to Melati Sdn Bhd worth RM500. Paid advertising expenses for RM1,200 in cash. Paid motor expenses for RM65 in cash. Required: a) Identify the above transactions' effects (increase/decrease) on assets, liabilities, owner's equity, revenues, and expenses. b) Identify the double entry to record the transactions above. Mr. Thomas commenced business on 1 March 2022. During the first month of the operation, the following events and transactions occurred. Date 1 4 14 25 28 28 29 Business Transactions Started business with cash in hand RM10,000, cash at bank RM20,000, machinery valued at RM40,000. Purchased goods RM9,000 on credit from Mery Enterprise Cash sales worth RM1,000 were paid directly into the bank. Purchase on credit from Melati Sdn Bhd worth RM5,000. Returned damaged goods to Melati Sdn Bhd worth RM500. Paid advertising expenses for RM1,200 in cash. Paid motor expenses for RM65 in cash. Required: a) Identify the above transactions' effects (increase/decrease) on assets, liabilities, owner's equity, revenues, and expenses. b) Identify the double entry to record the transactions above.

Answer rating: 100% (QA)

To identify the effects of the transactions on assets liabilities owners equity revenues and expenses well analyze each transaction and categorize its ... View the full answer