The following transactions occurred in the records of Moon Limited (hereafter Moon) during the financial year ended 31 May 2021. a) Moon paid cash of R 30 000 on 23 May 2021 to their landlord in respect of rent for the building for the period 1 June 2021 to 31 August 2021. b) Moon received cash of R 19 000 on 25 May 2021 from their tenant in respect of rent for the sub-lease of part of the building from 1 June 2021 to 31 July 2021. c) Moon obtained a loan of R 6 000 000 on 20 May 2021. The loan is repayable in three annual equal instalments and the first instalment of the loan is due to be repaid on 1 June 2022. The effect of discounting is not considered material. d) Moon obtained a loan of R 3 000 000 on 20 May 2021. The loan is repayable in three annual equal instalments and the first instalment of the loan is due to be repaid on 1 April 2022. e) Moon obtained a loan of R 1 500 000 on 5 May 2021. The loan is repayable in three annual equal instalments and the first instalment of the loan is due to be repaid on 1 December 2021 Questions 1)transactions (a) and (b), identify and discuss , in terms of the Conceptual Framework for Financial Reporting, whether the transaction would result in an asset, liability, income and/or expense that should be recognised in the financial statements for the year ended 31 May 202 2)For transactions (a) and (b) provide the journal entries to be recorded for each transaction for the financial
The following transactions occurred in the records of Moon Limited (hereafter Moon) during the financial year ended 31 May 2021.
a) Moon paid cash of R 30 000 on 23 May 2021 to their landlord in respect of rent for the building for the period 1 June 2021 to 31 August 2021.
b) Moon received cash of R 19 000 on 25 May 2021 from their tenant in respect of rent for the sub-lease of part of the building from 1 June 2021 to 31 July 2021.
c) Moon obtained a loan of R 6 000 000 on 20 May 2021. The loan is repayable in three annual equal instalments and the first instalment of the loan is due to be repaid on 1 June 2022. The effect of discounting is not considered material.
d) Moon obtained a loan of R 3 000 000 on 20 May 2021. The loan is repayable in three annual equal instalments and the first instalment of the loan is due to be repaid on 1 April 2022.
e) Moon obtained a loan of R 1 500 000 on 5 May 2021. The loan is repayable in three annual equal instalments and the first instalment of the loan is due to be repaid on 1 December 2021
Questions
1)transactions (a) and (b), identify and discuss , in terms of the Conceptual Framework for Financial Reporting, whether the transaction would result in an asset, liability, income and/or expense that should be recognised in the financial statements for the year ended 31 May 202
2)For transactions (a) and (b) provide the
3)Prepare an extract of the
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