The following transactions are recorded in the Accounting Equation for Mr.James, a wholesale merchant.●●●Start a company with $200,000 in cash and $50,000 in land.purchasedmerchandise for $80,000 in cash.Cash sales of $20,000 were made.purchased $50,000 worth of products from Salman on credit.Sales on account of $12,000 to Ali Raza.purchase $5,000 worth of furniture using cashgot $10,000 in cash from Mr. Smith.Return $1,500 worth of damaged furniture.Paid rent ($2,000), salaries ($1,000), and electricity ($1,500) bills.

A fundamental accounting theory known as the "accounting equation," or "balance sheet equation,"…

Answered: The following transactions are recorded…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 45P: What accounting method (cash or accrual) would you recommend for the following businesses? a. A gift...

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Mr. Steve Persian hired Elizabeth to prepare the Statement of Financial Position of his business. To prepare the statement, Elizabeth identified the following assets and liabilities of Mr. Persian: a. Cash deposited in YKY Bank amounting to P100, 000 b. He has uncollected sales from customers amounting to P50, 000 c. The total amount of merchandise left inside the warehouse is P35, 000 d. Steve paid in advance the rent amounting to P15, 000 for one year. e. The machineries and equipment amounted to P150, 000 f. He bought the materials from his suppliers amounting to P30, 000 and promised to pay the said amount one month after the end of the year. g. He paid the contributions of his employees such as SSS, Philhealth and Pag ibig amounting to P6, 500 h. Outstanding balance to Meralco is amounting to P3, 500 i. He acquired a 2 year loan from YKY Bank amounting to P45, 000.
ABC is a wholesale trader; the following transactions are recorded in Accounting Equation. i. Commence business with cash Cad. 200,000 and Land Cad. 50,000. ii. Bought merchandising for cash Cad. 80,000. iii. Cash sales of worth Cad. 25,000. iv. Bought goods on credit from Salman of worth Cad. 50,000. v. Sales on account to Ali Raza Cad. 12,000. vi. Purchase furniture of the value of Cad. 5,000 by cash. vii. Received cash from Ali Raza of Cad. 10,000. viii. Return defective furniture of worth Rs. 1,500. xi. Paid wages Rs. 1,000, Rent 2,000 and Electricity Bill Payable Rs. 1,500.
Of the following transactions, which should be recorded as income? Of the following transactions, which should be recorded as income? Harry's Hats sold inventory on credit for $ 3000. Chandler & Co Plumbing's owner contributes $10 000 of personal funds to the business. M. Witham borrowed $80 000 from the bank. T. O'Toole pays $5500 for goods sold to her on credit last month.
Mrs. Agustin is wholesale trader; following transactions are record in Accounting Equation? 1. Commence business with cash P400,000 and Land P70,000. 2. Bought merchandising for cash P 900,000. 3. Cash sales of worth P35,000. 4. Bought goods on credit from Salman of worth P60,000. 5. Sales on account to Ali Raza P 13,000. 6. Purchase furniture of the value of P 6,000 by cash. 7. Received cash form Ali Raza of P 11,000. 8. Return defective furniture of worth P1,000. 9. Paid wages P1,000, Rent 2,000 and Electricity Bill Payable P1,500.
Give Accounting Equation for the following transactions of Jitesh:– Started business with cash $. 36,000– Paid rent in advance $. 800– Purchased goods for cash $.10,000 and on credit $. 4,000– Sold goods for cash $. 8,000– Rent paid $. 2000 and rent outstanding $. 400– Bought cycle for personal use $. 16,000– Purchased equipment's for cash $. 10,000– Paid to creditor$ $. 1,200– Some business expenses paid $. 1,800– Depreciation on equipment $. 2,000
Create a Retail company, and record the following transactions.1. Create a chart of accounts and record the following beginning balances:Cash on Hand= $ 495,000 Land = $ 225,000Accounts Payable = 20,000Equity = $ 700,000 2. Purchased goods from Salim $ 112,500.3. Sold goods to Khalifa $ 225,000 and received amount $ 25,000 in Bank Muscat.4. Paid Interest expenses in cash $ 67,500.
What accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of 900,000. b. An accounting partnership with average annual gross receipts of 12 million. c. A drywall subcontractor who works on residences and has annual gross receipts of 3 million. d. An incorporated insurance agency with average annual gross receipts of 28 million. e. A sole proprietor operating a retail clothing store with average annual gross receipts of 12 million. f. A sole proprietor operating a widget manufacturing plant with average annual gross receipts of 27 million.
below case illustrates, 1- below case illustrates, prepare the accounting equation. 2-mentioned operations in the journal Ahmed started his business by depositing -1 100,000 dinars in cash in the fund of his trading company. 2-Ahmed withdrew 10,000 dinars for the purpose of paying him personal expenses. 3-Buying merchandise for 20,000 dinars on the account from the merchant, Muhammad. 4-Paying 10,000 dinars of the merchant's debt in cash. 5- Buying goods for 30,000 dinars and paying for it in cash. 6-Payment of 5,000 dinars from the merchant Mohammed debt through a loan from the bank. 7-The company pledged to pay the rent of owner Ahmed's private residence leased from Samir, which is 5000 dinars to be deducted from his capital. 8-Paying an amount of 3,000 dinars from the debt of the merchant Muhammad in cash from the owner Ahmed's own money. 9-Ahmed gave up 30,000 dinars of his capital to his brother .Mahmoud
Activity: Following are the accounting transactions relating to Mr. P’s business. Use the accounting equation to show their effect on his assets, liabilities and capital. Purchased goods from A on credit 5,000 Sold goods for cash 10,000 Paid to A 2,000 Sold goods to B on credit 3,000 Paid into Bank 6,000 Paid to A by cheque 1,000 Received from B a cheque for 2,000
On February 1, 1991 Aslam started a business with a cash investment of Rs. Q#1 100,000.He completed the following transactions during the month. February: 03: Purchased merchandise on credit from Esa jee Rs. 25,000. 05: Purchased Sales Equipment on account from Babar and Co. Rs. 20,000. 15: Sold merchandise for cash Rs. 10,000 and on credit Rs. 15,000. 20: Paid to Easa jee Rs. 15,000. 25: Collection from customers Rs. 10,000. 28: Paid office salaries Rs. 3,000. Required a) Record the above transactions in the General Journal. b) Post the entries from the General Journal into the ledger using T-accounts. c) Balance the accounts and prepare Pre closing Trial Balance in proper form on February 28, 1991 with complete title and column headings.
Date Transaction details 01-Sep Started business by investing $10,000 from personal savings into a business' bank account and Computer Equipment worth $7,500. 02-Sep Purchased furniture from LEO Ltd for $5,000 paying by cheque. 04-Sep Purchased goods for resale from BELL Ltd on credit for $3,100. 05-Sep Took $1,000 from the bank account for cash use. 07-Sep Purchased goods for resale on credit from Taylor for $2,800 08-Sep Credit sales to Adrian and Evans for $3,500 and $2,200 respectively. 09-Sep Cash sales $700 09-Sep Returned goods to BELL worth $350 11-Sep Cash sales $1,200. 11-Sep Purchased goods for resale from Jaime paying by cash $1,200 12-Sep Paid fuel expenses $1,100 by cash. 13-Sep Evans returned goods amounting to $650. 14-Sep Adrian paid $750 in cash to her account. 15-Sep Sold goods to Kris for $1,300 on credit. 16-Sep Purchased goods on credit from BELL for $1,350. 18-Sep…
Date Transaction details 01-Sep Started business by investing $10,000 from personal savings into a business' bank account and Computer Equipment worth $7,500. 02-Sep Purchased furniture from LEO Ltd for $5,000 paying by cheque. 04-Sep Purchased goods for resale from BELL Ltd on credit for $3,100. 05-Sep Took $1,000 from the bank account for cash use. 07-Sep Purchased goods for resale on credit from Taylor for $2,800 08-Sep Credit sales to Adrian and Evans for $3,500 and $2,200 respectively. 09-Sep Cash sales $700 09-Sep Returned goods to BELL worth $350 11-Sep Cash sales $1,200. 11-Sep Purchased goods for resale from Jaime paying by cash $1,200 12-Sep Paid fuel expenses $1,100 by cash. 13-Sep Evans returned goods amounting to $650. 14-Sep Adrian paid $750 in cash to her account. 15-Sep Sold goods to Kris for $1,300 on credit. 16-Sep Purchased goods on credit from BELL for $1,350. 18-Sep…

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