Accounting

by Rekha
(Canada)

Set up the following 10 t-accounts on a sheet of blank paper:

Cash (or bank);
Office Equipment;
Furniture & Fixtures;
Delivery Equipment;
Land;
Building;
Accounts Payable/Hill Office Furniture Co;
Accounts Payable/Murry Auto Sales;
Bank Loan Payable;
Capital, W. Stubbs.

Using the process of analyzing transactions, record the following transactions directly into the t-accounts:

Feb 1. William Stubbs, the owner invested $75,000 cash in a hardware store

Feb 2. borrowed $20,000 from the bank

Feb 3. bought a building and land for $80,000. The building is valued at $63,000 and the land at $17,000. Paid by cheque.

Feb 4. bought a cash register for $950. Issued a cheque.

Feb 5. bought a desk and chair for the office for $1,200 on account from Hill Office Furniture Co.

Feb 6. bought a used delivery trunk for $6,100 on account from Murray Auto Sales

Feb 7. made a partial payment on the bank loan $500

Feb 8. paid hill office furniture co $400 on account

Feb 9. bought an electronic calulator from Hill Office Furniture co for $150. Paid $50 cash and agreed to pay the balance in 10 days.


CASH/BANK
________________________________
Feb 1. 75,000 - DEBIT
Feb 2. 20,000 - DEBIT
Feb 3. 80,000 - CREDIT
Feb 4. 950 - CREDIT
Feb 7. 500 - CREDIT
Feb 8. 400 - CREDIT
Feb 9. 50 - CREDIT



OFFICE EQUIPMENT
________________________________
Feb 4. 950 - DEBIT
Feb 9. 150 - DEBIT



FURNITURE & FIXTURES
________________________________
Feb 5. 1,200 - DEBIT



DELIVERY EQUIPMENT
________________________________
Feb 6. 6,100 - DEBIT



LAND
________________________________
Feb 3. 17,000 - DEBIT



BUILDING
________________________________
Feb 3. 63,000 - DEBIT



A/P - HILL OFFICE FURNITURE
________________________________
Feb 8. 400 - DEBIT
Feb 5. 1,200 - CREDIT
Feb 9. 100 - CREDIT



A/P - MURRY AUTO SALES
________________________________
Feb 6. 6,100 - CREDIT



BANK LOAN PAYABLE
________________________________
Feb 2. 20,000 - CREDIT
Feb 7. 500 - DEBIT



CAPITAL W. STUBBS
________________________________
Feb 1. 75,000 - CREDIT

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Accounting

How would one provide an example demonstrating how the bookkeping sector might relate and interact with other sectors in the financial services industry.

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Accounting

How can one start a business with cash rs currency 32000 and bank loan of rs currency 68000?

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Accounting

by Tebohot
(Pretoria)


What is the difference between balance sheet items and income statement items?

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Accounting

Would you classify a gym as a service or sales business?????

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Credit On Sales Tax Report

Is there an accounting credit on the sales tax report you can deduct if you pay the tax in a timely manner? To debit the sales tax where would I credit it to? Thank you.

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Accounting Date for Checks

by Pam
(San Diego, CA)

We use cash accounting. When we enter checks into our acounting system that we issue to pay our company's bills, what date should be recorded on the general ledger--the date on the check or the date on the bank statement showing when the check cleared the bank account?

For example, this can be tricky around year-end when you date a check 12/29 and it appears on the bank statement as 1/5.

Thanks in advance for your response.

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Designated Trip Allowance

by Lawrence Rae
(Canada)

We were given a large gift for a medical trip to India. I placed the money in my checking account. Is there a way to account for that trip within my checkbook while still entering the items in the register to balance at the end of the month? Or, do I have to put the money in a different bank account to track the expenditures for the trip while I balance my present checkbook?

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Accounting for Donations

How would I record cash earned from selling cookies or from a car wash?

Would I list it under the title donations?

Thanks!

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Accounting Food Purchased and Photography

by Mark
(NH)

I imagine this is some kind of expense, but how would you categorize it?

Our food production related product requires recipe research and food photography to create content for website and other marketing materials.

Is it a marketing expense, R&D expense, etc.

Hello Mark,

Great question. I would be inclined to classify this as a Research and Development (R&D) expense.

Regards!

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Accounting for Free Food

When a restaurant gives a complaining customer a free meal how does the bookkeeper account for this?

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Accounting for Gratuities

What is the best way to account for tips when it comes to debit and credit cards? I assume that tips will be included in my sales and deposited into my bank account. What is the best way to then take tips out of my sales account to reconcile it? Tips payable or something like that?

Thanks very much!

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Accounting Dissolution Changes In Ownership

by Maureen Labrador
(Philippines)


Admission by investment of assets.

Partners Gonzaga and Magada have capital account balances of P30,000 and P20,000, respectively, and they share profits and losses in a 3:1 ratio.

How would you prepare the journal entries to record the admission of Ortiz under each of the following conditions:

1. Ortiz invested P30,000 for a one-fourth interest in net assets; the total partnership capital after Ortiz's admission will be P80,000.

2. Ortiz invested P30,000, of which P10,000 is a bonus to Gonzaga and Magada. In conjuction with the admission of Ortiz, the carrying amount of the inventories is increased by P16,000. Ortiz's capital account is credited for P20,000.


Thanks

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Accounting for Value Added

by Jason
(Fawn Grove, PA, USA)

www.sycp.us

www.sycp.us

We are a podcast and a nonprofit corporation in PA. We create audio CDs of the podcast and donate them to the local public libraries. We do not like to fool with creating audio CDs of archived episodes so we price them at $12.00 due to time, material and postage. I paid $14.00 for blank 100 CDs. Now, 40 episodes is technically a $480 donation to the libraries. I believe I can debit the Expenses account for the $480 but since there was value added from $14 to $480 how do I show the credit for this transaction?

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Financial Accounting

by David
(jhb)

Why do total assets equal total equity and liabilities on both balance sheets?

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Mastering Correction of Accounting Errors


(CA)

1. Which of the following errors would not be revealed by the trial balance?

a. A sale debited to accounts receivable for $500 and credited to sale for $50?
b. A rent check debited to rent expense for $975 and credited to cash for $795?
c. Collection of receivable debited to cash for $300 and credited to accounts payable for $300?
d. Payment of an account debited to accounts payable for $1000 and debited to cash for $1000?

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Non-Profit Accounting Within a Commercial Company

by Jonas
(Kampala, Uganda)

Hello,

I need to do the accountancy for a company but it has been more than 10 years since I had some courses and I'm a bit stuck.

Setting: There are 3 companies. In Uganda there is a commercial company, in Congo there is a commercial company and a non-profit organization.

All are owned by the same person but apart from that, there is no other link. The Congolese company is actualy just a plantation that has one client, the Ugandan company. In Uganda they have the English accountancy system/rules and in Congo the Belgian/French.

I'm stuck with the following:

How do I book a grant that a commercial comapny receives? (as we are fair-trade, there are some organizations that want to support us for example).

How do I book a repayable grant? That is basicly a loan without interest but there are some costs for administration related to them.

Sometimes it happens that we receive a grant on our Ugandan bank accounts, but the grant is meant for the Conoglese company. How do I book it?

What happens when we transfer the money in cash to Congo?

What happens when we buy assets from them in Uganda that we later hand over to our congolese company?

We are allowed to allocate a part of our employees salaries to a project as an own-contribution in-kind. How do you book such a thing? The own contribution is a condition of the grant. They give us money but we have to prove that we ourselves invest a certain percentage of the grant as well.

Can you book accumulated depreciation in the french accountancy system? That way, through the life of the asse, at all time you can trace the original purchase price and all the depreciations so far.

As we live in Africa, often we need to give an advance on services that still need to be delivered. Unfortunately, it also happens that those persons dissapear with the money and never show up or deliver their services anymore. How do I account for that?

When is packaging of a material an asset and when is it an expense and part of the equity?


If you know any of the answers, any help is greatly appreciated!


Best regards
Jonas





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Proprietary Concern Accounting

A proprietor maintains his savings account in the company books of accounts. He received some amount after selling his personal property which he deposited in his saving account.

What Entry should I Pass ?

Is it : Bank A/c Dr
To propreitor capital A/c

or

Bank A/c dr.
To Sale of property A/c.

Kindly note he invested the received amount in another company.

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