The business has the following opening balances on 1 June 2023: Cash at bank Accounts receivable...
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The business has the following opening balances on 1 June 2023: Cash at bank Accounts receivable Vehicle Accounts payable Bank loan (due 2025) Furniture Total equity Transaction from 1 June to 30 June 2023: Description (a) On 1 June, Realtor 21 occurred vehicle maintenance expenses of $408 and promised to pay to the repairer next month (in July). Prepare journal entries on 1 June. (b) On 3 June, Realtor 21 received advertising placement fees from clients by cash of $1,703. Prepare journal entries on 3 June. (tips: read the above description) (c) On 5 June, Realtor 21 received a rental commission from the client on account of $2,442. Client promised to pay next month (In July). Prepare the journal entries on 5 June." (d) On 7 June, Owner of Realtor 21 withdraw cash of $500 to purchase the supplies including magazines and promotional materials. Prepare journal entries on 7 June. (e) On 10 June, Realtor 21 received a rental commission from the client by cash of $4,000. Prepare journal entries on 10 June. (tips: read the above description) $11,674 $16,961 $35,313 $8,696 $28,000 $23,065 ? Mid-term assessment for ACC201 Fall 2023 (for internal use only) Ⓒ (f) On 20 June, Realtor 21 received cash payment from a client who owned Realtor 21's commission of $2,200 on account last month (in May). Prepare journal entries on 20 June. (g) On 22 June, Realtor 21 received advertising placement fees from the client on account of $2,600. Client promised to pay next month (in July). Prepare journal entries on 22 June. (h) On 30 June, the owner of Realtor 21 paid staff wages $4,000 by cash. Prepare journal entries on 30 June. (i) On 30 June, Realtor 21 paid the general insurance of $500 for June coverage. Prepare journal entries on 30 June. (j) On 30 June, Realtor 21 paid $1,400 which owned their suppliers last month. Prepare journal entries on 30 June. (k) Utilities expenses that occurred in June were $500 and will be paid next month (in July). Prepare journal entries on 30 June. (1) The owner estimated the vehicle and furniture depreciation expense for June would be $570. Prepare journal entries on 30 June. (m) The owner believed the cash flow in June was healthy, thus, decided to prepaid the general insurance for the next two months for a total of $1,000. Prepare the journal entries on 30 June. Additional information: (i) The small business is subject to tax-free support from the government, so no tax consideration in this case. (ii) The interest rate of one-year bank loan (i.e, $28,000) is 10%. Thus, the total interest out of the loan for one year is $2,800, and we assume it is equally distributed each month. According to the agreement with the bank, the interest expenses out of the bank loan must pay on a monthly basis by cash. (iii) On 30 June, there are only $150 supplies on hand. (n) Prepare ALL necessary adjusted entries on 30 June. Requirements (total=1+14+1=16marks): (1) Calculate the opening balance for Equity (1 marks). (2) Prepare the journal entries for each transaction above from (a) to (n) for Realtor 21 (14 marks). Keep one digit after the decimal, if applicable. (3) Calculate the net profit margin ratio (1 marks). The business has the following opening balances on 1 June 2023: Cash at bank Accounts receivable Vehicle Accounts payable Bank loan (due 2025) Furniture Total equity Transaction from 1 June to 30 June 2023: Description (a) On 1 June, Realtor 21 occurred vehicle maintenance expenses of $408 and promised to pay to the repairer next month (in July). Prepare journal entries on 1 June. (b) On 3 June, Realtor 21 received advertising placement fees from clients by cash of $1,703. Prepare journal entries on 3 June. (tips: read the above description) (c) On 5 June, Realtor 21 received a rental commission from the client on account of $2,442. Client promised to pay next month (In July). Prepare the journal entries on 5 June." (d) On 7 June, Owner of Realtor 21 withdraw cash of $500 to purchase the supplies including magazines and promotional materials. Prepare journal entries on 7 June. (e) On 10 June, Realtor 21 received a rental commission from the client by cash of $4,000. Prepare journal entries on 10 June. (tips: read the above description) $11,674 $16,961 $35,313 $8,696 $28,000 $23,065 ? Mid-term assessment for ACC201 Fall 2023 (for internal use only) Ⓒ (f) On 20 June, Realtor 21 received cash payment from a client who owned Realtor 21's commission of $2,200 on account last month (in May). Prepare journal entries on 20 June. (g) On 22 June, Realtor 21 received advertising placement fees from the client on account of $2,600. Client promised to pay next month (in July). Prepare journal entries on 22 June. (h) On 30 June, the owner of Realtor 21 paid staff wages $4,000 by cash. Prepare journal entries on 30 June. (i) On 30 June, Realtor 21 paid the general insurance of $500 for June coverage. Prepare journal entries on 30 June. (j) On 30 June, Realtor 21 paid $1,400 which owned their suppliers last month. Prepare journal entries on 30 June. (k) Utilities expenses that occurred in June were $500 and will be paid next month (in July). Prepare journal entries on 30 June. (1) The owner estimated the vehicle and furniture depreciation expense for June would be $570. Prepare journal entries on 30 June. (m) The owner believed the cash flow in June was healthy, thus, decided to prepaid the general insurance for the next two months for a total of $1,000. Prepare the journal entries on 30 June. Additional information: (i) The small business is subject to tax-free support from the government, so no tax consideration in this case. (ii) The interest rate of one-year bank loan (i.e, $28,000) is 10%. Thus, the total interest out of the loan for one year is $2,800, and we assume it is equally distributed each month. According to the agreement with the bank, the interest expenses out of the bank loan must pay on a monthly basis by cash. (iii) On 30 June, there are only $150 supplies on hand. (n) Prepare ALL necessary adjusted entries on 30 June. Requirements (total=1+14+1=16marks): (1) Calculate the opening balance for Equity (1 marks). (2) Prepare the journal entries for each transaction above from (a) to (n) for Realtor 21 (14 marks). Keep one digit after the decimal, if applicable. (3) Calculate the net profit margin ratio (1 marks).
Expert Answer:
Answer rating: 100% (QA)
SOLUTION To begin lets calculate the opening balance for Equity The formula for Equity is Equity Total Assets Total Liabilities Given the opening balances provided we can calculate the Equity as follo... View the full answer
Related Book For
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
Posted Date:
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