Accounting Answers

Debit Cash

Credit Other Financing Sources

• What does this journal entry mean?

Debit Expenditure

Credit Voucher Payable

• What does this journal entry mean?

Debit Cash

Credit Deferred Inflow of Resources

• What does this journal entry mean?

Debit Cash

Credit Tax Anticipating Note

• What does this journal entry mean?

Debit Estimated Revenue Control

Debit Budgetary Control

Credit Appropriations Control

• What does this journal entry mean?

Debit Estimated Revenue Control

Credit Appropriations Control

Credit Budgetary Control

• What does this journal entry mean?

Debit Encumbrance

Credit Budgetary Control

• What does this journal entry mean?

Debit Budgetary Control

Credit Encumbrance

• What does this journal entry mean?

Debit Appropriations

Debit Budgetary Control

Credit Estimated Revenues

• What does this journal entry mean?

What account is an Encumbrance?

What account is Budgetary Control?

What account is Appropriations?

What account is an Estimated Revenue Control?

Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part‐time at

Rosebank College. Willow Traders uses the perpetual inventory system to record inventory

transactions. Mark‐up is 20% on cost on all good sold.

VAT can be ignored on all transactions.

The following transactions took place in the month of August 2020:

NO DATE TRANSACTION

2.1 1 Owner contributed a delivery vehicle valued at R200 000

2.2 4 Purchased goods for cash R10 000 and received a trade discount of

5%

2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers

2.4 15 Paid R300 cash for an advert in the local newspaper

2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees

are sold at R75 each

Shown below in random order is a list of balance sheet items for Red River Farms at Sent 30, 2001: 

$33,570 

Land ........ Barns and Sheds .......... Notes Payable Accounts Receivable Citrus Trees ......... Accounts Payable ..... Property Taxes Payable .... 

$550,000 

78,300 530,000 22,365 76,650 77,095 9,135 

Fences and Gates Irrigation System Cash Livestock . Farm Machinery .... Hollis Roberts, Capital Wages Payable 

20,125 

16,710 .. 120780 

42,970 

1,820

Debit Cash

Credit Refundable Advance

• What does this journal entry mean?

Debit Refundable Advance

Credit Pledge receivable - with donor restrictions

Credit Revenue - with donor restrictions

• What does this journal entry mean?

Debit Cash - with donor restrictions

Credit Pledge receivable - with donor restrictions

• What does this journal entry mean?

Debit Satisfaction of use restriction - with donor restriction

Credit Cash - with donor restriction

• What does this journal entry mean?

Debit Cash - without donor restrictions

Credit Satisfaction of use restriction - with donor restriction.

• What does this journal entry mean?

Debit Construction in progress

Credit - without donor restrictions

• What does this journal entry mean?

If you debit Refundable Advance, what account would you normally credit associated with the Refundable Advance?

Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by arranging gift hampers for the customer's loved ones. The inflows arises from the sale of gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is confused on how to record these inflows. She would like to understand from you about the concepts Revenue from operation and other income, so that she can record the information so as to prepare the profit and loss statement of the enterprise. Define, share examples, and elaborate on your understanding towards the terms Revenue from Operation and Other Income

On December 31, 2020, BROWN Bank has a 5-year loan receivable with a face value of ₱6,000,000 dated January 1, 2019 due on December 31, 2023. Interest is payable annually every December 31 at 9%. The borrower made the required interest payment on December 31, 2019 but informed the bank that interest accrued for 2020 will be paid together with the principal at maturity. There is a high probability that remaining interest payments will not be paid. The prevailing market rate is 10%. What is the loan impairment loss for 2020? (Round PV factors to 2 decimals) 

which accounts are credit and debit in the nominal section

A business firm purchased two machines on 1st January 2017 at a cost of Sh1,500,000 each. Each machine had an estimated useful life of five years and a nil residual value. The straight line method of depreciation is used. On 31st March 2019, one machine was sold for Sh.800,000. The second machine was sold on 1st December 2019 for Sh.250,000.

b) Provision for depreciation account for machinery        

c) Disposal of machinery account                               

A business firm purchased two machines on 1^st January 2017 at a cost of Sh1,500,000 each. Each machine had an estimated useful life of five years and a nil residual value. The straight line method of depreciation is used. On 31^st March 2019, one machine was sold for Sh.800,000. The second machine was sold on 1^st December 2019 for Sh.250,000.

Required: 

1. Machinery account                                          (3 marks)
2. Provision for depreciation account for machinery                 (3 marks)
3. Disposal of machinery account