Accounting Answers

When my company issues a cheque for insurance does the bank account debit or credit

Use the information provided below, for Snow Plumbing Services, which uses the
periodic inventory system, to answer question 7:
R
Inventory (1 July 20.7)……………………….................................. 150 000
Cash purchases……………………………………………………....
Credit purchases……………………………………………………...
Purchases returns…………………………………………………....
15 000
6 000
2 000
Freight inwards………………………………………………………..
Freight outwards………………………………………………………
Settlement discount received………………………………………..
Settlement discount granted…………………………………………
1 200
1 800
1 700
2 500
Inventory (31 July 20.8)……………………. 120 000
Additional information:
The owner of Snow Plumbing Services donated taps and basins to the value of R1 000 to the
local crèche on 16 June 20.7. No entries regarding this transaction was made in the accounting
records of Snow Plumbing Services, yet.
34
ASSIGNMENT 01 (continued)
7. The cost of sales is …
R
(1) 47 500
(2) 17 300
(3) 10 300
(4) 19 000
(5) 18 000

What is the purpose of charging depreciation?
Select one:
a. To ensure that funds are available for the eventual replacement of the non-current asset.
b. To reduce the cost of a non-current asset in the statement of financial position.
c. To comply with the prudence concept.
d. To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use.

Receipt and payments book.granny Sithole has a prepaid box for electricity,she paid R850 to upload electricity

this exam.
SHORT EXERCISE #1 (15 POINTS):
Tom’s Surf Company, whose fiscal year ends December 31, completed the following transactions involving notes payable:
2018
Nov 30 Purchased inventory display equipment by issuing a 60 day 10 percent note for $35,000. Dec 31 Made the end-of-year adjusting entry to accrue interest expense
2019
Jan 29 Paid off the balance of the note
Prepare the journal entries for the above transactions. Round your answers for interest calculations to the nearest cent. Assume there are 365 days in the year.

What does it mean if both entries for a merchandiser's sale transaction (the sale, and the removal of the sold item from inventory) are recorded for the same dollar amount?

Which one of the following is not a recommended qualitative characteristic that the accounting policies and financial statements of companies should have?
Select one:
a. Comparability
b. Relevance
c. Reliability
d. Probability

On 1 August 2010 the following balances appeared in the accoubtung records of trevor traders..general ledger :bank=74 000. Motor vehicles expenses =14 300. Debtors ledger: M Phosa =3 900. Creditors Ledger : grant supplies =23 000..please help start my ledger

On 1-1-2010 a machinery was purchased for 8000 rs it was should on 30-6-2013 for 6000rs. Depreciation is charged at 10% on original cost. Books are closed on 31st december every year prepare machinery account and depreciation account for the above perioud

New Millennium Trading in its first month of operations has appointed you as the Accounts Clerk. You
are required to enter the following transactions in the books of New Millennium using the double entry
system and close / balance all the accounts as at the period ended May 31, 2017.
You are also required to prepare a Trial Balance as at May 31, 2017.
May 1 Started business with $15,000 capital in cash
May 2 Paid $14,000 of the cash into the business bank account
May 3 Bought goods on credit from J. Paul for $592
May 4 Bought a motor van for $3,000 paying by cheque
May 5 Bought goods, paying by cheque $2,100
May 9 Sold goods to E. Samuel for $323 and received a cheque
May 11 Paid for stationery $45 cash
May 14 Cash sales $490
May 18 Goods returned by us to J. Paul, $72
May 19 Bought goods on credit from J. Paul, $67
May 21 Paid for advertising, $60, by cheque
May 30 Paid wages by cheque $540 and motor vehicle fuel $110 by cash.