Question 3 In summary, event 3 leads to a decrease in cash and a decrease in debt on the balance sheet as well as a decrease in profit on the income statement. On the other hand, event 4 leads to an increase in income and the availability of accounts receivable on the balance sheet, as well as an increase in profit on the income statement. On March 25, Thelma will book and pay wages to the employees at Systrarnas Fastighetsbyrå. You have the following information about wages for the month of March: Gross wages: SEK 500,000 Personnel tax: 33% Employer's tax: 31.42% 1. a) Give an account of how gross wages affect profit and cash on March 25 due to the transactions that take place then. Use the terms result, cost and access in your answer. Justify your answer and link it to concrete numbers in the scenario. 2. b) Explain how cash and cash equivalents are affected on April 12 by the total payments made due to March wages on this date. Justify your answer and link the answer to concrete amounts in the scenario above.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1TP: A retail store normally has three people working in the evening. All of the employees have access to...
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Question 3 In summary, event 3 leads to a decrease in cash and a decrease in debt on the balance sheet as well as a decrease in profit on the income statement. On the other hand, event 4 leads to an increase in income and the availability of accounts receivable on the balance sheet, as well as an increase in profit on the income statement. On March 25, Thelma will book and pay wages to the employees at Systrarnas Fastighetsbyrå. You have the following information about wages for the month of March: Gross wages: SEK 500,000 Personnel tax: 33% Employer's tax: 31.42% 1. a) Give an account of how gross wages affect profit and cash on March 25 due to the transactions that take place then. Use the terms result, cost and access in your answer. Justify your answer and link it to concrete numbers in the scenario. 2. b) Explain how cash and cash equivalents are affected on April 12 by the total payments made due to March wages on this date. Justify your answer and link the answer to concrete amounts in the scenario above.   

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