16. In a business's books, the ledger account of Gar Mack, a creditor, shows a debit balance ofR450. What does this mean?a. Gar Mack has paid R450 to the businessb. Gar Mack owes the business R450c. The business has paid Gar Mack R450d. The business owes Gar Mack R45017. A truck cost R800 000. The price included R3 600 for petrol. The total payment of R800 000was debited to the Truck Account. What is correct entry to record the purchase?a. Dr Vehicles R803 600 Cr Bank R803 600b. Dr Vehicles R800 000 Cr Bank R800 000c. Dr Bank R800 000 Cr Vehicles R800 000d. Dr Bank R803 600 Cr Vehicles R803 60018. A vehicle costing R200 000 is depreciated by 20% per annum on the diminishing balancemethod. What is the depreciation charge at the end of the second year?a. R32 000b. R40 000c. R64 000d. R80 00019. An invoice for an expense owing shown in the Statement of Financial Position is shown as aa. Current assetb. Non-current assetc. Current liabilityd. Non-current liability

Since you have posted multiple questions, we will do the first one for you. Please post the other…

16. In a business's books, the ledger account of Gar Mack, a creditor, shows a debit balance of R450. What does this mean? a. Gar Mack has paid R450 to the business b. Gar Mack owes the business R450 c. The business has paid Gar Mack R450 d. The business owes Gar Mack R450

16. In a business's books, the ledger account of Gar Mack, a creditor, shows a debit balance of R450. What does this mean? a. Gar Mack has paid R450 to the business b. Gar Mack owes the business R450 c. The business has paid Gar Mack R450 d. The business owes Gar Mack R450

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: One One following 1-account for Flag Corporation to answer questions 11 and 12 Beg Bal 187 150 64…

A: Accounts Receivables are the ledger that includes those accounts to whom company has sold goods on…

Q: Transaction Account to be Account to be debited credited a. Started a business with RM50,000 by cash…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: 8. Billed John Smith for $20,000 for services rendered. Received $8,000 cash and $12,000 on account.…

A: Two parties to this transaction: John Smith Company Activity of each party: Service…

Q: Journalize the following transactions. 2018 Jan. 1 Started business with P10 000. 3 Deposited P5…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: 10. Received $3,000 from John Smith in partial payment of accounts receivable. Identify the two…

Q: Which of the following statements is TRUE? * O A business should credit Revenue when the business…

A: When a donation is received it is not shown as a revenue instead as receipts. A business should…

Q: Kofi Ansah, who maintains an account with KYZ bank ltd has presented a cheque he received from one…

A: i) Following are the parties in the given scenario:

Q: Record the following transaction in the appropriate account: Transaction Started business with cash…

A: A journal is a primary book where the transactions are originally recorded. Further, a journal entry…

Q: Prepare income statement Particulars Sales Purchases Salaries Motor expenses Rent Insurance Ali…

A: Income statement is one of the financial statement being prepared in business. This is prepared for…

Q: Ali Mamat Enterprise Trial Balance as at 31 December 2019 Particulars Sales Purchases Salaries Motor…

A: Balance Sheet : It is a financial Statement which re-present the company / business financial…

Q: Question 4 Louis Jordan owns and operates Louis' Lighting. Louis' Lighting offers credit terms of…

A: In the data available, the following points are cleared: Louis’ Lightning is a subsidiary It offers…

Q: A business performs services for a customer for $26,000 on account. Which of the following accounts…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: 5. Collected P150.00 from This transaction involves_ customer in payment of her therefore, it is…

A: 5) The transaction involves collections from customers and therefore, it is recorded in sales…

Q: Prepare income statement Particulars Sales Purchases Salaries Motor expenses Rent Insurance General…

A: Lets understand the basics. Income statement is prepared for calculating income/expenses/net income.…

Q: 3. Which one of the following could not be called income? A. An allowance B. A paycheck C. Interest…

A: An income is the amount of money or cash inflows that are received by an individual or a business in…

Q: 26. MC.03.031 Beach Company receives $25,000 cash revenue for services performed. The transaction…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Mar. 6) The company completed services for a client and immediately received $6,900 cash. Note:…

A: When services are performed we recognize revenue , thus service revenue is recorded when the task is…

Q: QUESTION ONE. Complete the table by showing the accounts to be debited and credited for Favor…

A: A transaction is a company contact that has an institutional impact on financial statements and is…

Q: How will IFFA record the May 1 transaction? a. No entry is needed. b. decrease Cash and increase…

A: the information about IFFA's transactions and Stores Ltd.'s account balances is unrelated and cannot…

Q: A business renders services to a customer for OR16,000 on account. Which account is credited?…

A: The Correct Option is Option “d”. Service revenue account will be credited.

Q: Direct debit means

A: Direct Debit Means is an instruction by the business to your bank, that authorizes the organization…

Q: 1. Given following information: Siti previous balance = RM 2156.50 Purchase clothing = RM 430.15…

A: When you use a credit card or charge account, you realize a monthly statement detailing all of the…

Q: 6. Below is the Trial Balance for Puppers Company for January 31, 2023. Cash Accounts Receivable…

A: BALANCE SHEET Balance sheet is one of the important financial statements of the company. Balance…

Q: Indicate the accounts to be debited and credited in each of the following transactions. Montle Pty…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: 1. In the _____, a balance is calculated at the end of each each, incorporating any purchases,…

A: Fill in the blanks in the step 2.

Q: Question 2: Identify the most appropriate source document to use for each of the transactions listed…

A: A source document is the primarily documents which indicates a certain transaction has occurred or…

Q: Entity A enters into the following transactions. You are required to show the impact of the…

A: An accounting equation type of recording financial transactions is one of the approach through which…

Q: Question #12 (1) An explanation of why the company had an allowance account (2) what the balance…

A: 1.Allowance account of accounts receivable is a contra asset account which reduces the balance of…

Q: STATEMENT 1: There are only two parties involve in a credit transaction STATEMENT 2: A CREDITOR is…

A: STATEMENT 1: There are only two parties involve in a credit transaction STATEMENT 2: A CREDITOR is…

Q: 1. Given following information: Paula previous balance Purchase clothing and dining Leisure and…

A: Credit cards are paid on monthly basis and interest and finance charges are calculated based on the…

Q: Made from Wood is new business founded by Mr. A in July 2022. The business was registered as a sole…

A: Journal Entry Financial transactions are documented in journals. You enter transaction information…

Q: 1. Interest paid on interest invested is called _____ interest.?

A: Annuity: An annuity is the series of payments which is received or paid for a certain period of…

Q: ou are required to enter the following transactic n the books of Mo Ryan: - Aug Started in business…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Show the effect of the following transactions In the Accounting Equation by completing the below…

A: Accounting Equation of the business shows that total of assets in business should be equal to total…

Q: Which of the following statements is TRUE? * A business should credit Revenue when the business…

A: Accounting principles mean some generally accepted rules and guidelines arising out of assumptions…

Q: Windsor, Inc. had the following transactions. 1. Borrowed $ 6,184 from the bank by signing a…

A: When we borrow money by signing notes payable, cash or bank will increase and Notes payable will…

Q: Below are typical transactions for Hewlett-Packard.Type ofBusiness Activity…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

16. In a business's books, the ledger account of Gar Mack, a creditor, shows a debit balance of
R450. What does this mean?
a. Gar Mack has paid R450 to the business
b. Gar Mack owes the business R450
c. The business has paid Gar Mack R450
d. The business owes Gar Mack R450
17. A truck cost R800 000. The price included R3 600 for petrol. The total payment of R800 000
was debited to the Truck Account. What is correct entry to record the purchase?
a. Dr Vehicles R803 600 Cr Bank R803 600
b. Dr Vehicles R800 000 Cr Bank R800 000
c. Dr Bank R800 000 Cr Vehicles R800 000
d. Dr Bank R803 600 Cr Vehicles R803 600
18. A vehicle costing R200 000 is depreciated by 20% per annum on the diminishing balance
method. What is the depreciation charge at the end of the second year?
a. R32 000
b. R40 000
c. R64 000
d. R80 000
19. An invoice for an expense owing shown in the Statement of Financial Position is shown as a
a. Current asset
b. Non-current asset
c. Current liability
d. Non-current liability

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Note:

VIEW

Step 2: 16) The debit balance of creditor account explanations:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Hi i need help on what is the answer for this. I hope you can help me
Show the effect of the following transactions in the accounting equation. For example: No. Account DR Account CR A = OE + L 1. Furniture Capital + 20 000 + 20 000 0 The owner deposited R 60 000 into business current account as his contribution. Sold goods on credit to F Malila for R 7000 (Cost price R4 500). Business obtained a loan of R30 000 from FCB Bank, the money was transferred to the business current account. Bought stationery on credit, R300. Owner withdrew R400 for personal use.
Q.3.2 Complete the following table by providing the missing information: Transaction: Possible source document: Business sells goods or services for cash Duplicate tax invoice with payment terms The customer of the business sold to on credit, returns goods or requests a rebate after the sale Petty Cash voucher & original cash slip from supplier. Received money from a debtor for part or full payment on account (5)
Which of the following transactions involves the exchange of a liability for an expense? Providing services for a customer on account Purchasing supplies on account Paying a utility bill on account Taking out a 6-month loan from the bank
q46) This multible choice question from ACCOUNTING PRINCIPLES I.just write for me the final answer.
If there is a debit balance of $1,250 on X's account in the books of Y, what does this mean? A X owes $1,250 to Y B Y owes $1,250 to X C X has returned goods worth $1,250 to Y D X is owed $1,250 by Y
9. Mike Smith paid the $200 that he owed for cleaning services that he got on account. Which accounts are affected? Is it an increase or decrease to the account? • Where will the debit and credit be reported? Okay You
I am taking TCA 221 class. I am in Ch.2 now, which is Accounting for Business Transactions. The question ask me to make T-account for every item - "Paid $100 on account to Edgar's Food Supply". How many items on this question? What are the items? It's that cash or account payable?
2. Transaction Account to be Account to be debited credited a. Started a business with RM50,000 by cash b. Owner transfer RM25,000 cash to the business bank account c. Purchased a motor vehicle on credit from Honda Berhad for RM40,000 d. Bought goods on credit from Laila Berhad worth RM250 e. Paid to Lili Berhad, a creditor RM100 by cheque f. The owner took out RM1,500 cash for family holiday trip with his family g. Goods purchased from Lili Berhad broken so we returned back to her worth RM25 h. Cash sales RM800 i. Paid electricity bill by cheque for RM200
How will IFFA record the May 1 transaction? a. No entry is needed. b. decrease Cash and increase Bank Loan Payable, $12 c. decrease Cash and increase Accounts Payable, $12 d. increase both Cash and Owner's Capital, $12 Enter the letter that corresponds to your choice. (A B C D) How will IFFA record the May 2 transaction? a. increase both Cash and Accounts Payable, $4,000 b. increase both Cash and Bank Loan Payable, $4,000 c. increase both Cash and Owner's Capital, $4,000 d. increase both Cash and Revenue, $4,000 e. increase both Cash and Retained Earnings, $4,000 Enter the letter that corresponds to your choice. (A B C D E) How will IFFA record the May 3 transaction? a. increase both Cash and Accounts Payable, $3,000 b. increase both Cash and Bank Loan Payable, $3,000 c. increase both Cash and Owner's Capital, $3,000 d. increase both Cash and Revenue, $3,000 e. increase both Cash and Retained Earnings, $3,000 Enter the letter that corresponds to your…
3. The entry to record the payment of $1,000 to a supplier in settlement of an account would require: a. a debit to Accounts Payable and a credit to Cash for $1,000 b. a debit to Accounts Receivable and a credit to Cash for $1,000 c. a debit to Cash and a credit to Accounts Payable for $1,000 d. a debit to Cash and a credit to Accounts Receivable for $1,000
(a) Describe the detail of the transaction being performed in the following screen. (b) Give the journal entry that MYOB made as a result of the transaction in part (a) (Note: account numbers are not required, just use account names.)