The following transactions occurred for two months period of the business entire: 1) The company established...

  

 

Transcribed Image Text:

The following transactions occurred for two months period of the business entire: 1) The company established the company with the starting capital stock of 4,000 (4,000 shares at RM 1 par value). 2) The company decide to take out from a bank to provide additional financing for the establishment of the business entity worth RM 26,000. 3) The company decided to purchased a building worth RM 20,000 for its office location. 4) An equipment worth RM 13,000 was purchased for cash to be used for the company's operations. 5) The company purchased inventory on account worth RM 10,000 on account. 6) An inventory was sold to a customer worth RM 10,000 on account. 7) The entity ordered an inventory from its supplier worth RM 16,000. 8) A payment was received from the customer from the purchased inventory. 9) The supplier asked the company to pay their accounts payable worth RM 10,000 which was the first order made by entity. 10) Utilities expenses e.g. electricity, water, telephone bills were received and were recorded as accrued expenses and the company eventually paid for BALANCE SHEET FOR THE 2 MONTHS PERIOD ASSETS Cash in hand Cash in bank account Buildings Inventory Equipment Total Assets LIABILITIES Loans Shareholder's Equity Common Stock Retained Earnings Total Liabilities and Shareholder's Equity RM 15,000.00 25,000.00 20,000.00 16,000.00 13,000.00 89,000.00 26,000.00 4,000,00 59,000.00 89,000.00 Answer the question: 1) Acquisition of non-current assests. Policy of the business is to depreciate non-current assets on monthly basic. 2) Value of beginning and ending inventory for the two months' period The following transactions occurred for two months period of the business entire: 1) The company established the company with the starting capital stock of 4,000 (4,000 shares at RM 1 par value). 2) The company decide to take out from a bank to provide additional financing for the establishment of the business entity worth RM 26,000. 3) The company decided to purchased a building worth RM 20,000 for its office location. 4) An equipment worth RM 13,000 was purchased for cash to be used for the company's operations. 5) The company purchased inventory on account worth RM 10,000 on account. 6) An inventory was sold to a customer worth RM 10,000 on account. 7) The entity ordered an inventory from its supplier worth RM 16,000. 8) A payment was received from the customer from the purchased inventory. 9) The supplier asked the company to pay their accounts payable worth RM 10,000 which was the first order made by entity. 10) Utilities expenses e.g. electricity, water, telephone bills were received and were recorded as accrued expenses and the company eventually paid for BALANCE SHEET FOR THE 2 MONTHS PERIOD ASSETS Cash in hand Cash in bank account Buildings Inventory Equipment Total Assets LIABILITIES Loans Shareholder's Equity Common Stock Retained Earnings Total Liabilities and Shareholder's Equity RM 15,000.00 25,000.00 20,000.00 16,000.00 13,000.00 89,000.00 26,000.00 4,000,00 59,000.00 89,000.00 Answer the question: 1) Acquisition of non-current assests. Policy of the business is to depreciate non-current assets on monthly basic. 2) Value of beginning and ending inventory for the two months' period

Answer rating: 100% (QA)

I 1 PAL Acquisition Arsen ... View the full answer