Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem1)

Users of financial statements need useful information to make sound economic decisions. List five (5) users of financial statements and for each user listed identify one possible economic decision they might make through use of financial statements. (E.g. Employees – Require financials to identify if the entity would operate as a going concern thus providing job security and to establish whether their salaries will be paid to them.)

1.2 In South Africa we have differernt forms of business ownership available. Identify five (5) differences between a ‘sole proprietary’ and a ‘public company’. (It is suggested you tabulate the differences using the suggested topic headings provided below.)

118_Public company.jpg

1.3 Name and clearly identify three (3) current asset accounts and two (2) current liability accounts.

problem2) – ACCOUNT CLASSIFICATION

For each of the accounts listed below you are required to state what type of account they would be classified as [current asset (CA), current liability (CL), expense (E), non-current asset (NCA), non-current liability (NCL), Income (I) or shareholder’s equity (SE)] AND which financial statement the account would appear in [Income Statement (I/S) or Balance Sheet (B/S)].

problem3) – TRANSACTION ANALYSIS

For each of the transactions listed below you are required to identify the effect on the relevant accounting elements (Assets, Equity or Liabilities) by indicating the amount and whether the element is being increased / decreased (+ / -). An ex has been provided in a suggested format below.

1843_Financial statements.jpg

Transactions:

EG. Bought Inventory on credit from ABC Suppliers at a cost of R4 900.

4.1 The owner contributed R5000 cash into the business as a capital contribution.

4.2 A vehicle was bought and paid for in cash for R75 000.

4.3 Water and electricity for the period came to R570. This amount has not yet been settled.

                      ASSETS                               OWNERS EQUITY                         LIABILITIES
EG                 +4 900                                          0                                             +4 900

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93092

Have any Question? 


Related Questions in Financial Accounting

Reducing reliance on human workers and instead investing

Reducing reliance on human workers and instead investing heavily in computers and online technology will reduce fixed costs and increase variable costs. reduce variable costs and increase fixed costs. have no effect on t ...

Xyz company produces three products a b and c xyzs plant

XYZ Company produces three products, A, B, and C. XYZ's plant capacity is limited to 200,000 machine hours per year. The following information is available for planning purposes:                                     Produ ...

During 2014 desny corporation reported after-tax net income

During 2014, Desny Corporation reported after-tax net income of $3,580,000. During the year, the number of shares of stock outstanding remained constant at 9,700 of $100 par, 9 percent preferred stock and 397,000 shares ...

Amortize discount by interest methodon the first day of its

Amortize Discount by Interest Method On the first day of its fiscal year, Ramsey Company issued $22,000,000 of 10-year, 8% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a mar ...

Abebe helton owns a small restaurant in new york city ms

Abebe Helton owns a small restaurant in New York City. Ms. Helton provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May ...

Dollar-value lifo a company adopted the lifo method when

Dollar-Value LIFO A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory was $2,100 and costs had increased 5% during the year. Required What is the ending inventory using do ...

Floppy corp factored 600000 of accounts receivable to

Floppy Corp. factored $600,000 of accounts receivable to Floozy Corp. on October 1, 2015. Control was surrendered by Floppy. Floozy accepted the receivables subject to recourse for non payment. Floozy assessed a fee of 3 ...

Compose all journal entries including the budget entry and

Compose all journal entries, including the budget entry and closing entry, required in the Term Bond Debt Service Fund for the fiscal year ending June 30, 2006. Investment revenue during the year was $11,800, all of whic ...

Eps preferred dividends options and convertible debtthis

EPS: Preferred Dividends, Options, and Convertible Debt This unit’s Discussion topic is from CA16-5 of the text. “Earnings per share” (EPS) is the most featured, single financial statistic about modern corporations. Dail ...

Laurarsquos dress delivery operates a mail-order business

Laura’s Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $620,000 in December. Because Laura’s Dress Delivery is in the mail-order business, all sales are ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate