Warisan Trading is a stationary store and owned by Ameena. Below are the transactions ofWarisan Trading for the month of October 2013.OctoberStarted the business with RM10,000 cash.Purchased Canon printer RM400 by cheque for office use.Sold goods on credit to Halim RM500.Banked in cash RM1,000.Paid rental of premises amounting to RM300 by cash.The owners took RM500 from the bank and RM200 goods forpersonal use,Sales returned by Halim amounted to RM100.The business bought a motor vehicle for RM8,500 cash.Paid utility bills and wages of RM100 and RM600 cashrespectively.4121318202125Using the format given below, answer the following questions:Book of primeentryCash ReceiptJournalDateTransactionsIncreaseDecreaseDebitCreditCash sales ofAssetCashSalesOctober1.RM200RevenueRequired:-35 Required:a.State the appropriate book of prime entry for each of the transactions given above.Identify the effects (increase or decrease) for each of the transactions given above, onassets, liabilities, capital, revenue or expenses.b.C.Show the accounts to be debited and credited for each of the transactions givenabove.

Accounting is a process of recording transactions and preparing financial statements of the firm. It…

Answered: Warisan Trading is a stationary store…

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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ect of each transaction and the balances after each transaction:
Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current liability. С. expense. d. revenue.
Discuss the types of books of original entry. Describe how the accounting information flow from the invoice,ledger and to general ledger. Explain the importance of the books of original entry.
The retained earnings statement should be prepared a.after the income statement and before the balance sheet b.after the income statement and balance sheet c.before the income statement and after the balance sheet d.before the income statement and balance sheet
IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the following instructions, indicate the following: ASSETS- if the transaction results to an asset LIABILITY- if the transaction results to a liability EQUITY- if the transaction results to an equity INCOME - if the transaction results to an income EXPENSE - if the transaction results to an expense WITHDRAWAL- if the transaction results to a withdrawal N/A- if the transaction does not result to any of the elements. Receipt of cash for services rendered to clients. Collection of rentals from lessees. Purchase of supplies on credit.
For each account, identify whether the normal balance is a debit or credit a.Notes Payable b.Dividends c.Service Revenue How do i figure this out?
Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle v Information has predictive and confirmatory value. T. Relevance characteristic 8. Consistency characteristic
Under the accrual basis of accounting, revenue is recorded a. when earned and realizable b. when earned c. when earned and realized d. when realized
The retained earnings statement should be prepared a. before the income statement and balance sheet b. after the income statement and before the balance sheet C. before the income statement and after the balance sheet d. after the income statement and balance sheet
Which of the following statements is characteristic of accrual basis accounting? Expenses are recorded when payment is made. Revenue is recognized when payment is received. Transactions are recorded when they occur. The exchange of cash determines timing of revenue recognition.

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