Document3- WordPAGE LAYOUTREFERENCESMAILINGSREVIEWVIEWFOXIT READER PDFERTDESIGN습 HyperfinkA Signature LineA Date & TimeP BookmarkQuick WordArt DropСapTextPictures Online Shapes SmartArt Chart Screenshot Apps for OnlineVideoPageNumber-Comment Header FooterC Cross-referenceBox- PartsDObject -OfficePicturesLinksCommentsHeader & FooterTextIlMustrationsAppsMediaAdax Designs Services is a partnership with Adam and Max as partners. Thepartnership has been operating successfully for a number of years now. The partnershave a written partnership agreement. The following information was extracted from theaccounting records of Adax. Design Services for the financial year ended 28 February2021:RBalances in the ledger as at 28 February 2021Land and buildings at costAccumulated depreciation: buildingsEquipment at carrying amountDebtors835 000(65 000)270 000103 000400 000Capital- AndileCapital- SiphoCurrent account- Andile Credit balance (1 March 2020)Current account -Sipho – Debit balance (1 March 2020Drawings - Andile: GeneralDrawings - Sipho: GeneralNet profit for the year ended 28 February 2021300 00040 00020 000130 000102 000800 000The following must still be taken into account:1. The partnership agreement makes provision for the following:• Interest on capital must be provided at 12% per year on the balances in thecapital accounts for the period 1 March 2020 to 31 August 2020. The interest rateWORDSDesktop16°Ce here to searchpockard bell Document3 - WordFILEHOMEINSERTDESIGNPAGE LAYOUTREFERENCESMAILINGSREVIEWVIEWFOXIT READER PDFE Cover Page -A Hyperlink2 Sign.#3D Blank PageBookmarkDatePictures Online Shapes SmartArt Chart Screenshot Apps forOfficeTableOnlineComment Header FooterPageTextQuick WordArt DropPage BreakVideo Cross-referencePicturesNumber-Box Parts -Cap- DObjePagesTablesIllustrationsAppsMediaLinksCommentsHeader & FooterTextcapital accounts for the period1 March 2020 to 31 August 2020. The interest rateincreases to 15% per year for the remainder of the year ie 1 September 2020 to28 February 2021. The capital accounts remained unchanged.• Interest on current accounts must be provided at 12% per year on the openingbalances of the current accounts.• The partners are entitled to the following monthly salaries:- Andile R18 000 per month for a full year.- Sipho R20 000 per year for the full year.• Andile and Sipho withdrew 50% of their monthly salaries in cash as drawings.These amounts are not included in the drawings account shown above.• Sipho is entitled to a special bonus equal to 2,5% of the net profit for theyear.• Andile and Sipho share profits and losses in the ratio of 3:2 respectively.Required:Use the information provided above to prepare the statement of changes in equity(current accounts only) for the year ended 28 February 2021.Use the following format: Capital accounts section is NOT required.Statement of changes in equity for the year ended 28 February 2021Curont A cconnte onlyPAGE 4 OF 82124 WORDSSinhoAnnronuintiosP Type here to search

Equity refers to the sum value of money or capital invested by the owners in their company.

have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021: Balances in the ledger as at 28 February 2021 Land and buildings at cost Accumulated depreciation: buildings Equipment at carrying amount Debtors 835 000 (65 000) 270 000 103 000 400 000

have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021: Balances in the ledger as at 28 February 2021 Land and buildings at cost Accumulated depreciation: buildings Equipment at carrying amount Debtors 835 000 (65 000) 270 000 103 000 400 000

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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Oo.79. Subject :- Account
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Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net 1. Cash received from the sale of building 2. Depreciation expense 3. Purchase of building $ 180,000 (100,000) $ 80,000 $ 130,000 $ 380,000 (100,000) $ 280,000 2020 $ 270,000 (210,000) $ 60,000 During 2021, a building with a book value of $70,000 and an original cost of $300,000 was sold at a gain of $60,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2021? 3. What was the cost of buildings purchased by Anders during 2021? $ 400,000 (285,000) $ 115,000
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