Technology and Accounting Processes Question Answer 2022

Running head: TECHNOLOGY AND ACCOUNTING PROCESSES
Technology and Accounting Processes
Name of the Student
Name of the University
Author Note

1
TECHNOLOGY AND ACCOUNTING PROCESSES
Table of Contents
Answer to Question 3...................................................................................................................2
Answer to Question 4...................................................................................................................2
References....................................................................................................................................3

2
TECHNOLOGY AND ACCOUNTING PROCESSES
Answer to Question 2
Particulars
Amoun
t
Amoun
t
Net Operating Profit 54000
Additions to Profit
Depreciation 16000
Decrease in Accounts Receivable 7000
Decrease in Accounts Payable -13000
Loss on Sale of Equipment 41000
Decrease in Prepaid Rent 2000
Decrease in Inventory 7000
Decrease in Accrued Wages 5000
Net Cash Flow from Operating
Activities 119000
Cash Flow From Investing Activities
Sale of Equipment 10000
Purchase of Land -10000
Investments -30000
-30000
Cash Flow from Financing Activities
Issue of Debentures 26000
Share Capital 80000
Net Cash flow during the year 69000
Opening Cash and Cash Balance 131000
Closing Cash and Bank Balance 200000
b) The carrying amount of the equipment should be adjusted in the final balance sheet prepared
by the entity. This is essential because it allows the business to show a true reflection of its
annual financial statements and its performance during the year. Not making the adjustment will
also negatively affect the financial statements of the entity in the future.
Answer to Question 4
1a) Date Account Debit Credit