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T3 Extra Exercise #1 and #2

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ReneeLim
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11 views

T3 Extra Exercise #1 and #2

Uploaded by

ReneeLim
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Extra Exercise 1:

Analyse the effect of business transactions on the accounting equation.

Transactions for Gabriel Printing Company for October 2018 were as below:

Oct 1 Started the business with RM100,000 cash which was invested by owner. The business
also hired two staff to help in business.
3 Purchased equipment for office use from Anthony Ltd for RM50,000. The company paid
cash RM20,000 and the balance on account.
5 Purchased office supplies in cash, RM600.
11 Performed service to customer and received cash of RM2,500.
12 The owner withdrew cash RM1,000 for personal use.
16 Performed service to customer on account, RM3,000.
20 Paid RM500 on amount owed to Anthony Ltd.
23 Received RM3,000 from customer for the service performed on October 16.
26 Paid salaries expense, RM4,000, rent expense, RM1,500 and utilities, RM250.
28 Performed service for a customer, RM6,000. The company received RM4,000 and the
balance will be on account.

Prepare a tabular analysis of the business’s transactions using the following headings and
calculate the total for each item:

Assets = Liabilities + Owner's equity


Date Cash Account receivable Office supplies Equipment = Account payable + Owner's capital
Extra Exercise 2:

Analyse the effect of business transactions on the accounting equation.

Transactions for Jeremy Love Advertising Company for Jan 2018 were as below:

Jan 1 Jeremy has started an advertising company which he names Jeremy Love Advertising
Company. Jeremy invests RM10,000 cash in the business.
2 Jeremy also contributed a motor van to the business. The motor van worth RM10,000.
3 Purchased computer equipment for RM7,000 from Apple Store Ltd. Jeremy paid cash
RM3,500 and the balance will be on account.
5 Performed service to a customer on account, RM550.
10 Performed service for a customer, RM1,500. Jeremy received RM1,000 and the balance
will be on account.
16 Paid Apple Store Ltd the amount owed in full.
20 Received RM550 from customer for service performed in Jan 5.
22 Performed service to customer and received cash of RM800.
26 Repair and service fee for computer equipment, RM600. Jeremy paid RM200 and the
balance will be on account.
30 Jeremy withdraw cash of RM50 for personal use.

Prepare a tabular analysis of the business’s transactions using the following headings and
calculate the total for each item:

Assets = Liabilities + Owner's equity


Date Cash Account receivable Motor Vehicle Equipment = Account payable + Owner's capital

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