1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was settled on the same day. Global Entity makes use of the perpetual inventory system. Show the effect of each transaction on the Accounting Equation. Use the equation: A= OE + La.Asset; +40 000 = Equity; nil + Liability; nil. Asset; -40 000b.Asset; +40 000 = Equity; nil + Liability; nil. Asset; +40 000c.Asset; -40 000 = Equity; -40 000 + Liability; nild.Asset; +40 000 = Equity; nil + Liability; +40 000e.Asset; nil = Equity; -40 000 + Liability; +40 0002. Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s personal water and electricity of N$2 000. Show the effect of the transaction on the Accounting Equation. Use the equation: A= OE + La.Asset; -6 000 = Equity; -6 000 + Liability; nilb.Asset; -6 000 = Equity; -8 000 + Liability; +2 000c.Asset; nil = Equity; -6 000 + Liability; +6 000Asset; -2 000 = Equity; -2 000 + Liability; nild.Asset; nil = Equity; -6 000 + Liability; +6 000e.Asset; nil = Equity; -8 000 + Liability; +8 000

Name: 1. Global Entity is a retailer situated in Windhoek that sells various
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Description: 1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was sett

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was settled on the same day. Global Entity makes use of the perpetual inventory system. Show the effect of each transaction on the Accounting Equation. Use the equation: A= OE + L

Asset; +40 000 = Equity; nil + Liability; nil.

Asset; -40 000

Asset; +40 000 = Equity; nil + Liability; nil.

Asset; +40 000

Asset; -40 000 = Equity; -40 000 + Liability; nil

Asset; +40 000 = Equity; nil + Liability; +40 000

Asset; nil = Equity; -40 000 + Liability; +40 000

Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s personal water and electricity of N$2 000. Show the effect of the transaction on the Accounting Equation. Use the equation: A= OE + L

Asset; -6 000 = Equity; -6 000 + Liability; nil

Asset; -6 000 = Equity; -8 000 + Liability; +2 000

Asset; nil = Equity; -6 000 + Liability; +6 000

Asset; -2 000 = Equity; -2 000 + Liability; nil

Asset; nil = Equity; -6 000 + Liability; +6 000

Asset; nil = Equity; -8 000 + Liability; +8 000

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