Homework Help is Here – Start Your Trial Now!
Business
Accounting
Due to the current difficult economic conditions, people have had to face many difficulties. N Smile lost her job and she decided start her own business as a beautician and hairdresser. The following are transactions for the first month ended 31 May 2021: (transactions have numbers rather than dates); No. Transactions Amount - R 1 Smile transferred money from her savings account into a business bank account. 100 000 2. Smile bought equipment on credit from a local supplier. 35 000 Paid a deposit by electronic funds transfer (EFT). 20 000 Balance must be paid by 30 June 2021. 15 000

Due to the current difficult economic conditions, people have had to face many difficulties. N Smile lost her job and she decided start her own business as a beautician and hairdresser. The following are transactions for the first month ended 31 May 2021: (transactions have numbers rather than dates); No. Transactions Amount - R 1 Smile transferred money from her savings account into a business bank account. 100 000 2. Smile bought equipment on credit from a local supplier. 35 000 Paid a deposit by electronic funds transfer (EFT). 20 000 Balance must be paid by 30 June 2021. 15 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
3. Purchased consumable material and paid by EFT 18 500 4. Paid rent for business premises by EFT 5 200 5. An advertisement was placed in the local newspaper for a 3 month period for which she paid by EFT 1 500 6. In the first two weeks of business, she invoiced family and friends for services rendered to them. None of them paid. 18 700 7. She sub-let a section of her premises to Ringo, a mobile phone retailer, who deposited the first month's rent. 2 000 8. During the month she provided services for cash which she deposited into the bank account 23 670 Paid the following by EFT: Salaries 9. 14 000 Electricity By the end of the month, family and friends had paid 95% 2 200 10. of the amount they owed by the end of the first two weeks. 17 765 Required: 2.1 Process the above transactions through the basic accounting equation for the month ended 31 May 2021. (Basic accounting equation: Assets Equity + Liabilities) Show increases without brackets, decreases with brackets and no effect with a 0. 2.2 Prepare the statement of financial position in detail as at 31 May 2021.
Transcribed Image Text:3. Purchased consumable material and paid by EFT 18 500 4. Paid rent for business premises by EFT 5 200 5. An advertisement was placed in the local newspaper for a 3 month period for which she paid by EFT 1 500 6. In the first two weeks of business, she invoiced family and friends for services rendered to them. None of them paid. 18 700 7. She sub-let a section of her premises to Ringo, a mobile phone retailer, who deposited the first month's rent. 2 000 8. During the month she provided services for cash which she deposited into the bank account 23 670 Paid the following by EFT: Salaries 9. 14 000 Electricity By the end of the month, family and friends had paid 95% 2 200 10. of the amount they owed by the end of the first two weeks. 17 765 Required: 2.1 Process the above transactions through the basic accounting equation for the month ended 31 May 2021. (Basic accounting equation: Assets Equity + Liabilities) Show increases without brackets, decreases with brackets and no effect with a 0. 2.2 Prepare the statement of financial position in detail as at 31 May 2021.
QUESTION TwO Due to the current difficult economic conditions, people have had to face many difficulties. N Smile lost her job and she decided start her own business as a beautician and hairdresser. The following are transactions for the first month ended 31 May 2021: (transactions have numbers rather than dates); No. Transactions Amount - R 1 Smile transferred money from her savings account into a business bank account. 100 000 2. Smile bought equipment on credit from a local supplier. 35 000 Paid a deposit by electronic funds transfer (EFT). 20 000 Balance must be paid by 30 June 2021. 15 000
Transcribed Image Text:QUESTION TwO Due to the current difficult economic conditions, people have had to face many difficulties. N Smile lost her job and she decided start her own business as a beautician and hairdresser. The following are transactions for the first month ended 31 May 2021: (transactions have numbers rather than dates); No. Transactions Amount - R 1 Smile transferred money from her savings account into a business bank account. 100 000 2. Smile bought equipment on credit from a local supplier. 35 000 Paid a deposit by electronic funds transfer (EFT). 20 000 Balance must be paid by 30 June 2021. 15 000
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS