The owner of a company drawn a cheque on his personal bank account to buy an air conditioner for the office to use. The double entry should be: Debit Drawings; Credit Capital Debit Bank; Credit Capital Debit Air Conditioner; Credit Bank Debit Air Conditioner Credit Capital
1. The owner of a company drawn a cheque on his personal bank account to buy an air conditioner for the office to use. The double entry should be:
- Debit Drawings; Credit Capital
- Debit Bank; Credit Capital
- Debit Air Conditioner; Credit Bank
- Debit Air Conditioner Credit Capital
2. truck costing $20,000 was purchased on January 1, 2004. It was
- A. $ 1,000 gain
- B. $ 5,000 loss
- C. $ 12,000 loss
- D. $ 9,500 loss
3.
The
Capital Stock Sales Revenue Accounts Payable
Equipment Cash Supplies
Depreciation Notes Payable Notes Receivable
This list includes:
- Four assets and three liabilities.
- Five assets and three liabilities.
- Five assets and two liabilities.
- Six assets and two liabilities.
4.
A business has recently expanded its production capacity by installing some additional machinery. The associated costs were as follows:
Cost of machinery £285,000
Delivery charges 27,000
Installation costs 25,000
Spare parts 68,000
Extended warranty 15,000
Import tax 21,000
The amount at which this machinery will be valued and shown in the Statement of Financial Position as its historical cost is:
- £285,000
- £358,000
- £380,000
- £441,000
5.
A trader bought goods for resale on credit costing £1,000 in July and paid for them in August. These were sold on credit for £1,500 in September and the money received in October.
a. The costs were incurred in July, the revenue was earned in September and the profit of £500 arose in September
b .The costs were incurred in August, the revenue was earned in October and the profit of £500 arose in October
c. The costs were incurred in October, the revenue was earned in October and the profit o £500 a rose in October
d. There was a loss of £1,000 in August and a profit of £1,500 in October
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