SOLUTION: Mr. X commenced business on 1 June 2022. The following transactions took place during the month of June.
1. Introduced cash of $4,000 and a car valued at $1,750.
2. Bought goo
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-> SOLUTION: Mr. X commenced business on 1 June 2022. The following transactions took place during the month of June.
1. Introduced cash of $4,000 and a car valued at $1,750.
2. Bought goo
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Question 1201796: Mr. X commenced business on 1 June 2022. The following transactions took place during the month of June.
1. Introduced cash of $4,000 and a car valued at $1,750.
2. Bought goods for cash at a cost of $1,130.
3. Paid wages of $13 and sundry expenses of $2.
4. Sold goods on credit to V for $1,900.
5. Bought goods on credit from W for $85.
6. Bought equipment at a cost of $350.
Required:
a) Show the effects of the above transactions on the accounting equation.
(20 marks)
b) Prepare the Income statement of the business for the month ended 30 June 2022.
(8 marks)
c) Prepare the Balance sheet of the business as at 30 June 2022. ( Answer by ikleyn(52873) (Show Source):
