During February 2019, the following occurred in the business of Kutako Trading, a general dealer: 1 Mr Kutako deposited an amount of N$200 000 into the bank account of the business. 2 Paid for an advertisement on Facebook using the debit card of the business, N$2 500. 6 Sold goods on credit to Mr Hosea, N$100 000. 8 Paid for repairs to Mr Kutako's personal vehicle N$3 250 by electronic funds transfer (EFT) 10 Purchased goods on account from H. Hauifiku, N$150 000. 12 Mr Hosea returned damaged goods worth N$5 000. 15 Mr Hosea deposited N$92 000 directly into the account of the business in full settlement of his account. Required: For each of the transactions listed above, indicate which account must be debited and which account must be credited in the ledger, as well as the overall effect of each transaction on the elements of the accounting equation. Present your answer in the following format:

During February 2019, the following occurred in the business of Kutako Trading, a general dealer: 1 Mr Kutako deposited an amount of N$200 000 into the bank account of the business. 2 Paid for an advertisement on Facebook using the debit card of the business, N$2 500. 6 Sold goods on credit to Mr Hosea, N$100 000. 8 Paid for repairs to Mr Kutako's personal vehicle N$3 250 by electronic funds transfer (EFT) 10 Purchased goods on account from H. Hauifiku, N$150 000. 12 Mr Hosea returned damaged goods worth N$5 000. 15 Mr Hosea deposited N$92 000 directly into the account of the business in full settlement of his account. Required: For each of the transactions listed above, indicate which account must be debited and which account must be credited in the ledger, as well as the overall effect of each transaction on the elements of the accounting equation. Present your answer in the following format:

Name: During February 2019, the following occurred in the business of Kutak
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: During February 2019, the following occurred in the business of Kutako Trading, a general dealer:1 Mr Kutako deposited an amount of N$200 000 into the bank account of thebusiness.2Paid for an advertisement on Facebook using the debit card of the bus

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: Required – Prepare the adjusting entries required for the cash account. Calculate the adjusted…

A: Journal entries is a tool for recording business transactions into accounting records. A bank…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Discount on notes = Notes payable x discount rate x no. of days/360 =$18,000*10%*90/360 = $450

Q: On July 1, 2024, Cromartie Furniture established a $150 petty cash fund. A check for $150 was made…

A: A debit to petty cash and a credit to cash for $150 General JournalDebitCreditPetty cash$150 Cash…

Q: Transactions and balances for Diana Wonder are provided below: • 31 Jul 2020 Bank Statement balance…

A: Bank reconciliation is the process of checking out the difference between bank balance and cash…

Q: On 30th June, 2015, D’s Cash Book showed that he had an overdraft of $ 300 on his Current Account at…

Q: Daryl Swan operates four video rental stores. She has just received the monthly bank statement at…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: When comparing her own Cash at Bank account with her banks record (ANZ Bank), at the end of March…

A: The correct answer in the given question is (C) Until Fixed, Julie's Cash at Bank is overstated by $…

Q: On Thursday 25th August, 2022, George deposited a cheque from Second Hand Cars Limited for…

A: i. Approach to solving the question: The approach to solving this case involves carefully analyzing…

Q: Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31…

A: Bank reconciliation statement refers to a reconciliation between the entries entered in the cash…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

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

Q: Natalie decides that she cannot afford to hire John to do her accounting. One way that she can…

A: Bank Reconciliation Statement: Bank statement is prepared by the bank. The company maintains its own…

Q: You were hired by Mr. Juan Dela Cruz to prepare his sari-sari store’s Statement of Financial…

A: The difference between assets and liabilities is equity.

Q: a. Illustrate and record the following events on a T account John deposits his $10,000 paycheck into…

A: John deposits his $10,000 paycheck into his checking account at Chase Bank

Q: Rick Hall owns a card shop: Hall's Cards. The following cash information is available for the month…

A: Bank reconciliation is prepared to match the balance per bank statement to the balance per book.

Q: The following is the Cash Book (Bank columns only) for Mary Clarke for June 2020. Debit Credit $ $…

A: The bank reconciliation statement is prepared to adjust the cash balance and bank balance to make…

Q: Prepare any necessary journal entries based on the following data regarding the bank reconciliation…

A: Journal entries, in the books of an entity, are recorded to prepare a daily report of the…

Q: Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31…

A: Bank Reconciliation Statement is prepared to reconcile the cash balance of books with the cash…

Q: Cy Walker invests $20,000 of his personal savings into Mookie the Beagle Concierge. MTB Concierge…

A: What type of account is owner's investment ? Owner's investment (capital ) is personal account .…

Q: Perform a bank reconciliation. a) Reconcile Jack Steel’s month end cash balance as of 31 Jul 2019…

A: Bank reconciliation refers to the reconciliation of cash balance as per bank passbook with the cash…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = Notes x interest rate x no. of days/365 = (30000-4000)*10%*30/360 = $217

Q: In the books of Billings Computers Ltd., a journal entry is recorded to debit the bank loan account…

A: Lets understand the basics. Journal entry is required to make to record event and transaction in…

Q: SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from…

A: BRS allows a company to check whether the transactions recorded in cash book’s bank column are right…

Q: The following information relates to the cash position of Cathy Fraser, loan broker: 1. Cash at Bank…

A: The objective of this question is to prepare a bank reconciliation statement for Cathy Fraser, loan…

Q: gget discovered that cheque 735 written in March for $767 and cleared the bank was recorded in their…

A: In the given scenario, Nugget discovered that a check with the number 735, which was written in…

Q: Oscar Myer receives the March bank statement for Jam Enterprises on April 11, 2018. The March 31…

A: Bank reconciliation statement rectifies the difference between cash ledger and the bank statement.

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

During February 2019, the following occurred in the business of Kutako Trading, a general dealer:
1 Mr Kutako deposited an amount of N$200 000 into the bank account of the
business.
2
Paid for an advertisement on Facebook using the debit card of the business, N$2 500.
6 Sold goods on credit to Mr Hosea, N$100 000.
8 Paid for repairs to Mr Kutako's personal vehicle N$3 250 by electronic funds transfer (EFT)
10 Purchased goods on account from H. Hauifiku, N$150 000.
12 Mr Hosea returned damaged goods worth N$5 000.
15 Mr Hosea deposited N$92 000 directly into the account of the business in full settlement of
his account.
Required:
For each of the transactions listed above, indicate which account must be debited and which
account must be credited in the ledger, as well as the overall effect of each transaction on the
elements of the accounting equation. Present your answer in the following format:
Date ASSETS =
N$
1.2.19
+20 000
EQUITY
N$
+20 000
LIABILITIES
N$
ACCONT DEBITED ACCOUNT CREDITED
Bank
Sales

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

Your friend Steve comes to you for help in preparing his bank reconciliation for his company Steve’s Electronic Shop inc. (“SES”) at the end of the first month of operation in June 2019: He provides you with the following information: Opening Book balance of: $12,423.21 Balance on the June 30th bank statement: $17,743.96 SES pays utilities and Insurance through Electronic Funds Transfers (EFT). For the month of June, the payments were respectively $328 and $145. Steve prepared the June 30th deposit of $1,872 but didn’t make it in time for the bank to record it in June Bank service charge for June was $12.50 Interest earned on checking account for June was $25 and automatically deposited The bank statement shows a deposit of $423 that SES didn’t make. After a call to the Bank Manager, she apologized and told John the error would be corrected in July The following cheques are outstanding as at June 30th: Cheque # Payee Amount 745 Landlord $ 2,100.00 751…
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the com-pany hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. Cash sales $150,000 Collections on accounts receivable 350,000 Bank loan 90,000 Total cash receipts $590,000 The accounts receivable from customers at the end of the year are $120,000. You note that the accounts receivable at the beginning of the year were $190,000. The cash sales included $30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a.Compute the company’s accrual basis gross income for 2019. b.Would you recommend that Blue use the cash method or the…
Daryl Swan operates four video rental stores. She has just received the monthly bank statement at October31, 2019 from Bank of Montreal, and the statement shows an ending balance of $4,180. Listed on thestatement are an EFT rent collection by the bank for Swan of $150, a service charge of $15, four NSFcheques totalling $100, and a $20 charge for printed cheques. In reviewing her cash records, Swanidentifies outstanding cheques totalling $306 and an October 31 deposit in transit of $1,002. DuringOctober she recorded a $315 cheque for the salary of a part-time employee as $31. Swan’s Cash accountshows an October 31 cash balance of $5,145.Required:1. Prepare a bank reconciliation for Daryl Swan to determine how much cash Swan actually has atOctober 31, 2019?
James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
b) Sofea Enterprise runs a retail business. All cash and cheque receipt and payment are recorded in the Cash Book. The following transactions occurred during the month of September 2021 and are yet to be recorded in the Cash Book: The debit balance in the Cash and Bank accounts are $2,000 and $17,000 respectively. 3/9 Transfer cash $1,000 into the bank account. 4/9 Purchased goods worth $3,600 by cheque. 5/9 Paid Jamilah & Co. $5,000 by cheque for purchase of goods. 6/9 The owner took $500 cash for his own use. 8/9 Paid the shop rental $3,000 by cheque. 10/9 Received a cheque from Ms. Angie amounting to $3,600 after deducting cash discount $400. 15/9 Cash sales of $3,200. 18/9 Issued $2,850 cheque to Seri Enterprise after deducting cash discount of 5%. 20/9 Received $5,000 cheque from Faiz Enterprise. 23/9 Cash sales banked the same day, $2,600. 28/9 Paid wages to shop assistant by cheque, $1,200. REQUIRED: Prepare a Three-column Cash Book, balancing it at 30 September 2021. Bring down…
Mr. P's bank statement dated 31.12.2021 showed a balance with his Bank of $924, when checked with his Cash Book the following were noted :(a) During December, the Bank had paid $200 for a yearly contribution of Mr. P made to a local charity, as per his standing order. This amount appeared in the Bank statement but not in the Cash Book.(b) The Bank had credited his account with $28 interest and had collected on his behalf `$230 as dividends. No corresponding entries were made in the Cash Book.(c) A cheque of $65 deposited into the Bank on 28.12.2021 was not cleared by the Bank till after 31.12.2021(d) A cheque of $150 deposited into and cleared by the Bank before 31.12.2021 was not entered in the Cash Book, through an oversight.(e) Cheques drawn by and posted to parties by Mr. White on 31.12.2021 for $73, $119 and $46 were presented for payment to the Bank only on 3.1.2021.
On July 31, 2022, Carla Vista Co. had a cash balance per books of $6,335.00. The statement from Dakota State Bank on that date showed a balance of $7,885.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $19.00. 2. The bank collected $1,715.00 from a customer for Carla Vista Co. through electronic funds transfer. 3. The July 31 receipts of $1,394.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to L. Taylor, a creditor, for $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00. 5. Checks outstanding on July 31 totaled $2,046.10. 6. On July 31, the bank statement showed an NSF charge of $770.00 for a check received by the company from W. Krueger, a customer, on account.…
A man borrowed $3700 from a bank for 6 months A friend was cosigner of the man's personal note. The bank collected 3 simple interest on the date of maturity a) How much did the man pay for the use of the money? b) Determine the amount he repaid to the bank on the due date of the note a) The man paid S for the use of the money