You will perform the following:(1)Select an accounting principle and explain how it can be applied toKate Minimart(ii)(iii)(iv)Perform research on the elements of the accounting equation Yourresearch should cover:Description of the element2 examples of accounts included under the element1 transaction that increases and 1 transaction that decreases theelementSelect THREE (3) transactions that Kate Minimart performs andillustrate their effect on the accounting equation.Select ONE (1) financial statement to prepare at period end.Describe the following:-the purpose of preparing the statementthe key componentsONE (1) user and how he can use its informationprovide a brief format of the selected financial statement (with nonumbers). 2.141= <- 2 - 2 -32You are to refer to Kate Minimart operation below:Kate operates animart store located in a private estate. She invested$20,000 of her own funds and took an additional $10,000 bank loan to pay Ifor the renovation and store fittings totaled $22,000, balance funds to usefor operation needs.Kate paid a monthly rent of $5,000 for the store. The minimart sells avariety of goods estimated a total worth of $10,000. All sales are on cashbasis amounting to about $12,000 to $14,000 each month. Kate is at a losshow to prepare the accounts for her business.You will perform the following:Select an accounting principle and explain how it can be applied toKate Minimart

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Description: You will perform the following:(1)Select an accounting principle and explain how it can be applied toKate Minimart(ii)(iii)(iv)Perform research on the elements of the accounting equation Yourresearch should cover:Description of the element2 examples

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(1) (ii) Select an accounting principle and explain how it can be applied to I Kate Minimart Perform research on the elements of the accounting equation Your research should cover: Description of the element 2 examples of accounts included under the element 1 transaction that increases and 1 transaction that decreases the element

(1) (ii) Select an accounting principle and explain how it can be applied to I Kate Minimart Perform research on the elements of the accounting equation Your research should cover: Description of the element 2 examples of accounts included under the element 1 transaction that increases and 1 transaction that decreases the element

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 2BCRQ

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(iii) (iv) element Select THREE (3) transactions that Kate Minimart performs and illustrate their effect on the accounting equation. Select ONE (1) financial statement to prepare at period end. Describe the following: -the purpose of preparing the statement the key components ONE (1) user and how he can use its information provide a brief format of the selected financial statement (with no numbers).
10 You are to refer to Kate Minimart operation below: Kate operates a minimart store located in a private estate. She invested $20,000 of her own funds and took an additional $10,000 bank loan to pay for the renovation and store fittings totaled $22,000, balance funds to use for operation needs. (ii) Kate paid a monthly rent of $5,000 for the store. The minimart sells a variety of goods estimated a total worth of $10,000. All sales are on cash basis amounting to about $12,000 to $14,000 each month. Kate is at a loss how to prepare the accounts for her business. You will perform the following: (1) 6 Select an accounting principle and explain how it can be applied to Kate Minimart. 2 Perform research on the assets of the operation above. it should include: Description of the assets 2 examples of accounts included under the assets 1 transaction that increases and 1 transaction that decreases the assets
Review the following scenario: Scenario: Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter's wedding, Symington took inventory that cost $10,000. He recorded the transactions as follows: Debit Credit Cost of Goods Sold $10,000 Inventory $10,000 Respond to the following questions and, if appropriate, include personal experience as part of your answers. How do you feel Symington should have recorded these transactions? Why? What are the ethical implications of Symington's actions?
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Scenario: Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter's wedding, Symington took inventory that cost $10,000. He recorded the transactions as follows: Debit Credit Cost of Goods Sold $10,000 Inventory $10,000 Respond to the following questions and, if appropriate, include personal experience as part of your answers. • How do you feel Symington should have recorded these transactions? Why? • What are the ethical implications of Symington's actions?
Required information [The following information applies to the questions displayed below.] On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $2.59 million by paying $290,000 down and borrowing the remaining $2.30 million with a 8 percent loan secured by the home. The Franklins paid interest only on the loan for year 1, year 2, and year 3 (unless stated otherwise). Note: Enter your answers in dollars and not in millions of dollars. Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. b. What is the amount of interest expense the Franklins may deduct in year 2 assuming year 1 is 2022? Deductible interest expense
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Cynthia found various ways to make use of her money to generate income. The following summarizes all the income she was able to derive from her use of money: Interest income from loans granted to online sellers who did not have enough capital on their own - P25,000 Interest income on a 90-day time deposit with BPI. The amount of deposit is P500,000 which pays 7% interest per annum. The interest was already credited to her account. • Interest income on her savings account maintained in her cooperative - P5,000 • Interest income on promissory notes of clients – P7,000 How much interest income is subject to final tax?
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Renee operates a proprietorship selling collectibles over the Web, and last year she purchased a building for $24 million for her business. This year, Rene’s proprietorship reported revenue of $95.5 million and incurred total expenses of $88.6 million. Her expenses included cost of goods sold of $48.5 million. Sales commissions paid of $16.9 million. $10.5 million of interest paid on the building mortgage, and $12.7 million of depreciation. What’s Renee’s adjusted taxable income for purposes of calculating the limitation on business interest expense? What is the maximum amount of business interest expense that Renee can deduct this year, and how is the disallowed interest expense (if any) treated? Suppose that Renee’s revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation?
A couple sold their home. In addition to a cash down payment, they financed the remaining balance for the buyer. The loan will be paid off by monthly payments of $300 for 5 years. The couple decides to sell the loan to a local bank. The bank will buy the loan, based on 1% per month interest. How much will the bank pay the couple for the loan? Select one: O a. 35648.74 O b. 3397.40 O c. 13486.51 O d. 1456.03 O e. 31468.53 You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year 10. At an interest rate of 10% per year, determine the annual worth equivalent through year 1 to 10. Select one: O a. 10282.48 O b. 6137.27 O c. 4540.89 O d. 5717.52 O e. 9862.73
A couple sold their home. In addition to a cash down payment, they financed the remaining balance for the buyer. The loan will be paid off by monthly payments of $300 for 5 years. The couple decides to sell the loan to a local bank. The bank will buy the loan, based on 1% per month interest. How much will the bank pay the couple for the loan? Select one: O a. 35648.74 O b. 3397.40 O c. 13486.51 O d. 1456.03 O e. 31468.53