QUESTION 2 Ignore Vat Antique Porcelains is a porcelain doll making company. Antique Porcelains has caught...

Transcribed Image Text:

QUESTION 2 Ignore Vat Antique Porcelains is a porcelain doll making company. Antique Porcelains has caught the attention of many larger porcelain doll manufacturers who have offered the owner a generous amount of money to acquire the business, all of which he declined in favour of developing her passion for porcelain doll. The following information relates to Antique Porcelain's inventory for the year ended 30 June 2018: Date 01/07/17 15/09/17 14/02/18 26/04/18 Description Opening Balance Purchase (1) Purchase (2) Purchase Date 10/10/17 15/01/18 20/05/18 Units (32 marks; 58 minutes) 16 500 850 1000 500 650 500 1350 Price per unit The following information relates to the sales made by Antique Porcelain during the year: Description Units Cash sale Credit sale Cash sale R650 ??? ??? R900 with 588 24? 380 Additional Information: 1. This purchase was from a supplier in Pretoria. The total purchase amounted to R500 000. Excluded from this price was the transport and insurance cost Antique Porcelain incurred, which amounted to R15 000 and R5 000 respectively. 2. This purchase was from a Chinese supplier. The total purchase amounted to R350 000. Import and custom duties for the purchase amounted to R25 000. Transport cost incurred on the purchase amounted to R20 000. It has always been Antique Porcelain's policy to apply a mark-up on cost of 25% to their products. Furthermore, Antique Porcelain has consistently applied the perpetual inventory system for recording the movement of inventory with the Weighted Average inventory costing method. = 570,18 cost unit Additional information: 2856 1625 a A year-end inventory count was performed and revealed that 346 units of dolls were on hand at 31 June 2018. You are required to: Required 1: Perpetual every Prepare journal entries for the purchases in additional information 1 and/ or 2. transactions Page 4 of Required 2: Prepare journal entries for the sales that occurred during the year. Required 3: Record the journal entries for closing journals QUESTION 3 Ignore Vat Text Smart Bulb (TSB) is a new waste management company situated in Bishop Lavis, in the Cape Flats of Cape Town, incorporated by Gregory Williams. Currently, TSB manages waste for small, medium and large Supermarkets around Cape Town and the Eastern Cape. The following transactions occurred during March 2023: March 1st Gregory invested his long time savings into the business, he contributed R70 000 and a Bakkie to transport the waste to a value of R80 000 with a useful life of five years. Rented Office space at Philippi Village, which is the Headquarters of TSB. Four months rent was paid, R20 000. The assets of TSB were insured by a prominent insurer, ABC Insurance, and paid R3200 for March. March 8th Purchased waste management supplies on credit, R3700. March 12th Gregory had several meetings with supermarkets in the Philippi, Bishop Lavis and Delft areas. Gregory managed to sign a contract to do waste management for the Goal Supermarket in Delft. TSB did waste management for the March month and earned a cash income of R40 000. TSB collects recyclables from the Waste Management site and sells them to Wykco Recycling in Parow Industrial. TSB earned R17 000 from the recyclables they sold and will only receive the money at the end of April. March 18th (22 marks; 36 minutes) March 31st Purchased fuel cash for the vehicle, R1200. Distributed cash worth R1500 to Luntu. Purchased additional waste management supplies on credit, R2500. Paid salaries of employees for March, R8000. Paid the March Telephone bill, R800. Prepaid insurance for the next two months, R7400. Waste Management supplies used for March equal R4000. Page 5 of 6 You are required to: Record the above transactions in the General Journal in the accounting records of TSB for the (22 marks) month of March 2023. 7 QUESTION 2 Ignore Vat Antique Porcelains is a porcelain doll making company. Antique Porcelains has caught the attention of many larger porcelain doll manufacturers who have offered the owner a generous amount of money to acquire the business, all of which he declined in favour of developing her passion for porcelain doll. The following information relates to Antique Porcelain's inventory for the year ended 30 June 2018: Date 01/07/17 15/09/17 14/02/18 26/04/18 Description Opening Balance Purchase (1) Purchase (2) Purchase Date 10/10/17 15/01/18 20/05/18 Units (32 marks; 58 minutes) 16 500 850 1000 500 650 500 1350 Price per unit The following information relates to the sales made by Antique Porcelain during the year: Description Units Cash sale Credit sale Cash sale R650 ??? ??? R900 with 588 24? 380 Additional Information: 1. This purchase was from a supplier in Pretoria. The total purchase amounted to R500 000. Excluded from this price was the transport and insurance cost Antique Porcelain incurred, which amounted to R15 000 and R5 000 respectively. 2. This purchase was from a Chinese supplier. The total purchase amounted to R350 000. Import and custom duties for the purchase amounted to R25 000. Transport cost incurred on the purchase amounted to R20 000. It has always been Antique Porcelain's policy to apply a mark-up on cost of 25% to their products. Furthermore, Antique Porcelain has consistently applied the perpetual inventory system for recording the movement of inventory with the Weighted Average inventory costing method. = 570,18 cost unit Additional information: 2856 1625 a A year-end inventory count was performed and revealed that 346 units of dolls were on hand at 31 June 2018. You are required to: Required 1: Perpetual every Prepare journal entries for the purchases in additional information 1 and/ or 2. transactions Page 4 of Required 2: Prepare journal entries for the sales that occurred during the year. Required 3: Record the journal entries for closing journals QUESTION 3 Ignore Vat Text Smart Bulb (TSB) is a new waste management company situated in Bishop Lavis, in the Cape Flats of Cape Town, incorporated by Gregory Williams. Currently, TSB manages waste for small, medium and large Supermarkets around Cape Town and the Eastern Cape. The following transactions occurred during March 2023: March 1st Gregory invested his long time savings into the business, he contributed R70 000 and a Bakkie to transport the waste to a value of R80 000 with a useful life of five years. Rented Office space at Philippi Village, which is the Headquarters of TSB. Four months rent was paid, R20 000. The assets of TSB were insured by a prominent insurer, ABC Insurance, and paid R3200 for March. March 8th Purchased waste management supplies on credit, R3700. March 12th Gregory had several meetings with supermarkets in the Philippi, Bishop Lavis and Delft areas. Gregory managed to sign a contract to do waste management for the Goal Supermarket in Delft. TSB did waste management for the March month and earned a cash income of R40 000. TSB collects recyclables from the Waste Management site and sells them to Wykco Recycling in Parow Industrial. TSB earned R17 000 from the recyclables they sold and will only receive the money at the end of April. March 18th (22 marks; 36 minutes) March 31st Purchased fuel cash for the vehicle, R1200. Distributed cash worth R1500 to Luntu. Purchased additional waste management supplies on credit, R2500. Paid salaries of employees for March, R8000. Paid the March Telephone bill, R800. Prepaid insurance for the next two months, R7400. Waste Management supplies used for March equal R4000. Page 5 of 6 You are required to: Record the above transactions in the General Journal in the accounting records of TSB for the (22 marks) month of March 2023. 7

Answer rating: 100% (QA)

Based on the images provided you are required to prepare journal entries for a series of transactions These transactions include purchases sales and various other transactions related to a business op... View the full answer