2020 PHS 3E POA EOY P1 Q1
1 Shane started a business, Sheng Yang Store on 1 May 2020. He carried out a number of transactions in the month of May 2020.
1. The owner took out an office computer costing $2 100 for his son. This has not been recorded yet.
2. The net realisable value of the inventory was $47 930.
3. Interest expense of $200 was unpaid.
a. State the accounting equation.
b. The following were some transactions in the month of May 2020. Analyse how the transactions would affect the elements in the accounting equation. May 1 transaction is shown as an example.
Cash at bank +$15 000
Capital +$15 000
Sheng Yang Store bought furniture for office use,
$8 000 on credit from Wood Forest.
Sheng Yang Store paid for insurance by cheque, $100.
Sheng Yang Store sold inventory costing $5 000 for $8 200 on credit to Sing Lee.
Sing Lee returned goods sold to him at $400. These cost $280.