Financial Accounting - Desklib Online Library

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Author Note:

1FINANCIAL ACCOUNTING
Table of Contents
Answer to a......................................................................................................................................2
Answer to b......................................................................................................................................3
Answer to c......................................................................................................................................5
Answer to d......................................................................................................................................6
Answer to e......................................................................................................................................7
Answer to Q f...................................................................................................................................8
Answer to g......................................................................................................................................9
(I).................................................................................................................................................9
(II)................................................................................................................................................9
(iii).............................................................................................................................................10
(IV)............................................................................................................................................10
Answer to h....................................................................................................................................11

2FINANCIAL ACCOUNTING
Answer to a
In the books of Great Barrier Reef Company for the year 2018
General Journal
Date Details Debit Credit
1-Jan Cash
$
800,000
To Common Stock
$
800,000
( Being business operations started)
1-Jan Prepaid Rent
$
48,000
To Cash
$
48,000
( Being office rent paid for two years)
15-
Feb Supplies
$
3,500
To Cash
$
3,500
( Being supplies purchased and paid in cash)
1-
Apr Cash
$
60,000
To Borrowings
$
60,000
(Bing cash borrowed from FNB@6% interest)
1-
May Inventory
$
310,000
To Bank
$
310,000
(Being inventory purchased on account)
1-Jul Computer System
$
95,000
To Cash
$
95,000
(Being Computer System purchased and paid in cash)
5-Jul Accounts Payable
$
75,000
To Inventory
$
75,000
(Being accounts payable paid from inventory)
1-
Aug Inventory
$
540,000
To Sales $

3FINANCIAL ACCOUNTING
540,000
(Being inventory sold on account of $200,00)
1-Sep Salaries
$
50,000
To Cash
$
50,000
(Being employee salary paid in cash)
9-Sep Cash
$
254,000
To Accounts Receivables
$
254,000
(Being cash collected from accounts receivables)
5-Oct Inventory
$
225,000
To Sales
$
225,000
(Being inventory of $75000 sold on account)
2-
Nov Dividend
$
25,000
To Cash
$
25,000
( Being cash dividends paid to its stockholders)
Answer to b
Inventory
Debit Credit
Date
Amount(
$)
Dat
e
Amount(
$)
5-
Jul 75000
1-May 310000
1-Aug 200,000
5-Oct 75000
Total 585000 75000
Balanc
e 510000
Accounts Payable
Debit Credit
Date Amount($ Date Amount($