Prove that the Accounting Equation is satisfied in all following transactions of Wajeeha Ejaz owner of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prove that the Accounting Equation is satisfied in all following transactions of Wajeeha Ejaz owner of business enterprises? I. Started business with cash value of Rs. 500,000. II. Rent paid in advance for a year Rs. 6,000. III. Purchased merchandising inventory for cash Rs. 80,000 and on account Rs. 20,000 from Mr. Tahir. IV. Purchased Marketable securities for cash Rs. 100,000. V. Cash Sales Rs. 30,000 (cost 20,000). VI. During the period rent expires Rs. 2,000. VII. Commission paid during the trading was Rs. 1,000. VIII. Received cash dividend Rs. 4,000 on marketable securities. IX. Paid to Rs. 19,500 to Mr. Tahir in full settlement. X. Withdrew inventory for personal purpose by owner of worth Rs. 6,000. Prove that the Accounting Equation is satisfied in all following transactions of Wajeeha Ejaz owner of business enterprises? I. Started business with cash value of Rs. 500,000. II. Rent paid in advance for a year Rs. 6,000. III. Purchased merchandising inventory for cash Rs. 80,000 and on account Rs. 20,000 from Mr. Tahir. IV. Purchased Marketable securities for cash Rs. 100,000. V. Cash Sales Rs. 30,000 (cost 20,000). VI. During the period rent expires Rs. 2,000. VII. Commission paid during the trading was Rs. 1,000. VIII. Received cash dividend Rs. 4,000 on marketable securities. IX. Paid to Rs. 19,500 to Mr. Tahir in full settlement. X. Withdrew inventory for personal purpose by owner of worth Rs. 6,000.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
In the following table, the accounting equation is applied to Business A: Calculate the missing amounts assuming that: a. Assets decreased by $15,000 during August, and b. Liabilities increased by...
-
The accounting equation is Assets = Liabilities + Stockholders Equity. Appendix A reproduces Apples financial statements. Replacing words in the equation with dollar amounts, what is Apples...
-
The accounting equation is ASSETS LIABILITIES OWNERS EQUITY. Property ASSETS Items of value owned by the business || Financial Claims LIABILITIES Financial claims of creditors OWNER'S EQUITY...
-
What is the expected spot rate at the end of the year assuming PPP? initial spot rate 87.60 Expected US inflation 2.20% Expected Japanese yen inflation 0.00%
-
What is the rationale underlying the doctrine of the election of remedies?
-
Do you think the medical records were actually lost, or were they intentionally lost? Explain your answer.
-
Search the literature or web and discuss briefly the principles behind the following flowmeasurement devices: a Pitot tube; a hot-wire anemometer; a laser-Doppler velocity meter; and a...
-
a. Carlys Catering provides meals for parties and special events. In Chapter 2, you wrote an application that prompts the user for the number of guests attending an event, displays the company motto...
-
Two point charges, -2.4C and 5.616 C, are placed at x = 0 cm and x = 9.7 cm, respectively. Consider the x- axis directed to the right. 1.0p 8a At what point along the x axis is the electric field...
-
What is the relationship between a table of Movies and a table of ActorsActresses and how might it be implemented in a relational database?
-
On January 1 , 2 0 2 2 , the balance in Kubera Company's Allowance for Bad Debts account was $ 1 , 4 4 0 . During the year, a total of $ 3 , 6 7 5 of delinquent accounts receivable was written off as...
-
Presented below is net asset information related to the Ting Division of Santana, Inc. The purpose of the Ting Division (cash-generating unit) is to develop a nuclear-powered aircraft. If successful,...
-
Petersen Stores invested in $100,000 of face amount of 4-year bonds issued by Erik Food Supply Company on January 1, 20X1. The bonds were purchased at 98, and bear interest at a stated rate of 8% per...
-
Davis Steel Company acquired 30% of the stock of Reginald Metals Company. Davis acquired this investment for purposes of being able to exert significant influence over the strategic plans and...
-
Season Corporation had excess cash on hand on January 1, 20X1, and invested in three separate bond issues on that date. Each bond investment had a maturity date of December 31, 20X6, and a maturity...
-
Coastal Pine Corporation acquired 40% of the stock of Delta Shipping. Coastal Pine's investment is a long-term strategic investment. Coastal Pine anticipates that its investment will permit it to...
-
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets For Year Ended December 31...
-
a. What is meant by the term tax haven? b. What are the desired characteristics for a country if it expects to be used as a tax haven? c. What are the advantages leading an MNE to use a tax haven...
-
In 2012, Michael has net short-term capital losses of $2,000, a net long-term capital loss of $45,000, and other ordinary taxable income of $45,000. a. Calculate the amount of Michael's deduction for...
-
Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the City of McAllen. Maria's Social Security...
-
While preparing Massie Miller's 2012 Schedule A, you review the following list of possible charitable deductions provided by Massie: Cash contribution to a family whose house burned...
-
a. Show that the mean-squared forecast error \(E\left[\left(\hat{y}_{T+1}-y_{T+1} ight)^{2} \mid I_{T} ight]\) for a forecast \(\hat{y}_{T+1}\), that depends only on past information \(I_{T}\), can...
-
Consider the AR(1) model \(y_{t}=\delta+\theta y_{t-1}+e_{t}\) where \(|\theta|)=0\) and \(\operatorname{var}\left(e_{t} \mid I_{t-1} ight)=\sigma^{2}\). Let \(\bar{y}_{-1}=\sum_{t=2}^{T} y_{t}...
-
Consider a stationary model that combines the \(\operatorname{AR}(2)\) model \(y_{t}=\delta+\theta_{1} y_{t-1}+\theta_{2} y_{t-2}+e_{t}\) with an \(\mathrm{AR}(1)\) error model \(e_{t}=ho...
Study smarter with the SolutionInn App