Principles of Accounting - BAAC1102

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Student name: Naseer AlmoqbaliModule Name: Principles of AccountingModule Code: BAAC1102
Question 01:Business firm and its 10 transaction’s Analysis:We are discussing the printing service firm, ‘Printerpedia,' as an example. We'll examine and report eachof company's transactions, as well as explain how they affect the financial statements.Issues $20,000 worth of common stock for cash on February 3, 2020.1.Orders $3,500 in equipment on account on February 5, 2020, with payment due within the month.2.Collects $4,000 in cash in advance from a client on February 9, 2020 for services not yetdelivered.3.Pays $5,500 in services to a person who requests to be paid for the services on February 10,2020.4.Pays a $300 electric bill in cash on February 12, 2020.5.Dividends of $100 were issued to stockholders on February 14, 2020.6.On February 17, 2020, a client pays $2,800 in cash for services delivered.7.Paying in full, in cash, for the equipment acquisition on February 5, 2020 on February 18, 2020.8.Charged $3,600 in cash to staff on February 20, 2020 as a compensation expense.9.Obtained full cash payment from the buyer on the January 10 contract on February 23, 2020.10.10. Pays $1,200 in services to a client who requests to be paid for the services on February 27,2020.Transaction 01:Issues $20,000 in common stock for cash on February 3, 2020.Analysis:Printerpedia has earned capital, and the stockholders have invested in the company, so there is atransaction that needs to be registered.
Printerpedia now has a larger bank account. Cash is a commodity that is growing in value. On the debitline, money grows.Stockholders buy common stock as the company issues stock, resulting in a higher common stock numberthan before issuance. The common stock account is growing, which has an effect on equity. When welook at the extended accounting equation, we can see that the credit side of the equation shows thatCommon Stock is increasing.Effect on Accounting Equation:Assets = Liabilities + Stockholder Equity+$2000 = +$ + $20000+$2000 = +$ + $20000Transaction 02:Purchases equipment on account for $3,500 on February 5, 2020, with payment due within the month.Analysis:• In this situation, machinery is a commodity that is growing in value. Since Printerpedia now has morefacilities than before, it has increased. In the debit hand, assets rise, so the Equipment statement willdisplay a $3,500 debit.• The corporation did not immediately pay for the supplies. Lynn demanded that a bill beforwarded to her for payment at a later date. Printerpedia now has a debt because it owes theretailer money for the supplies. This responsibility is reported in Accounts Payable. As thecorporation now owes money to the retailer, this debt is growing. Therefore the account liabilityincreases on the side of credit; And accounts Payable will increase on the credit side as amount of$3,500.Effect on Accounting Equation:Assets = Liabilities + Stockholder Equity
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