Accounting Answers

4. Amal Automotive Company experienced the following accounting events during 2019. Received S60,000 cash from the issue of common stock. Performed services for $35,000 cash. Purchase land for $16,000 cash. Borrowed $1,000 cash from the Bank. Paid $24,000 cash for salary expenses. Sold land for $19,000 cash. Paid $20,000 cash on the loan from state bank. Paid $12,800 cash for salary expense. Paid a cash dividend of $15,000 to the stockholders Required: a. Pass general journal entries and post the entries, to T-accounts and determine the ending balance in each account. b. Prepare a statement of cash flows. Assume Amal Automotive had a beginning cash balance of $10,000.

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4. Amal Automotive Company experienced the following accounting events during 2019. Received S60,000 cash from the issue of common stock. Performed services for $35,000 cash. Purchase land for $16,000 cash. Borrowed $1,000 cash from the Bank. Paid $24,000 cash for salary expenses. Sold land for $19,000 cash. Paid $20,000 cash on the loan from state bank. Paid $12,800 cash for salary expense. Paid a cash dividend of $15,000 to the stockholders Required: a. Pass general journal entries and post the entries, to T-accounts and determine the ending balance in each account. b. Prepare a statement of cash flows. Assume Amal Automotive had a beginning cash balance of $10,000.

South African business environment is going through tough times with difficult challenges and constant changes in Macro, Micro and Market Environments.
Assume yourself as an owner of a business, discuss your approach in managing the above mentioned challenges in a way that will assist your business not only to survive but also to achieve the expected or planned growth.

You are planning to open a new business of your choice in a competitive business environment. Draw up a comprehensive business plan that is practical to ensure that your business not only survive but make a lucrative profit.
You are required to justify the following aspects in your Business plan:
2.1 The importance and reasons for developing a business plan.
2.2 The steps or layout of developing a business plan.
2.3 Explain some of the long term and short term benefits of creating a business plan

Identify the line item that does not appear on a Statement of Financial Position.

Select one:
a. Accounts Receivable
b. Cash and Cash Equivalent
c. Accounts Payable
d. Sales.

Which of the following transactions would have no impact on owners' equity?

Select one:
a. Net loss.
b. Investments of cash by shareholders.
c. Dividends to shareholders.
d. Purchase of land from the proceeds of a bank loan.

Identify the statement that correctly describes the dual aspect convention of accounting.
Select one:
a. At least two accounts will be involved in recording a transaction.
b. Only two ledger accounts will be needed to record any transaction
c. If a transaction requires two debit entries, two credit entries must also be made
d. Transactions are recorded in both a book of prime entry and the general ledger

Prepare a income statement in good form for marshals

Mr B. Smith (the owner of Cooper Traders) made a capital contribution of R100 000 in his business.

Identify the correct journal entry to record this transaction.

Select one:
a. Debit Cash account R100 000
Credit Investments account R100 000

b. Credit Cash account R100 000
Debit Investment in business account R100 000

c. Credit Cash account R100 000
Debit Owner's account R100 000

d. Debit Cash account R100 000
Credit Capital account R100 000