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Principles of Accounting - BAAC1102

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Added on  2021-03-25

Principles of Accounting - BAAC1102

   Added on 2021-03-25

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Student name: Naseer AlmoqbaliModule Name: Principles of AccountingModule Code: BAAC1102
Principles of Accounting - BAAC1102_1
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 each of 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 yet delivered.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 a transaction that needs to be registered.
Principles of Accounting - BAAC1102_2
Printerpedia now has a larger bank account. Cash is a commodity that is growing in value. On the debit line, 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 we look at the extended accounting equation, we can see that the credit side of the equation shows that Common 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 more facilities than before, it has increased. In the debit hand, assets rise, so the Equipment statement will display a $3,500 debit.• The corporation did not immediately pay for the supplies. Lynn demanded that a bill be forwarded to her for payment at a later date. Printerpedia now has a debt because it owes the retailer money for the supplies. This responsibility is reported in Accounts Payable. As the corporation now owes money to the retailer, this debt is growing. Therefore the account liability increases 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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