2020 PHS 3N POA EOY P1 Q1

2020 PHS 3N POA EOY P1 Q1

1 Nopia Noodles is in the business of selling gluten-free and low-GI noodles. The following transactions took place in the month of October 2019.

2019

 

Oct 8

Paid utilities expense, $300, by cash.

13

Sold noodles, of list price $2 050, to Chengye Cafe on credit. A trade discount of $50 was given. The cost price of the good sold was $630.

17

Paid supplier, Fam Factory, by cheque for the amount owing,
$2 400 less 5% discount.

25

Nopia, the owner, paid for stationery, $70 using personal cash.

 

REQUIRED

Complete the following table to show the effects of the above transactions on assets, liabilities and equity. The transaction on 8 October 2019 is given as an example.

[12]

2019

Assets

Liabilities

Equity

Oct 8

Cash in hand -$300

No effect

Utilities expense -$300

      13

   

      17

   

      25

   

[TOTAL 12]

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2019

Assets

Liabilities

Equity

Oct 8

Cash in hand

-$300

No effect

Utilities expense

-$300



        13





Trade receivable – Chengye Café [0.5]

+$2 000 [0.5]


Inventory [0.5]

-$630 [0.5]

No effect [0.5]

Sales revenue [0.5]

+$2 000 [0.5]



Cost of sales [0.5]

-$630 [0.5]



17






Cash at bank [0.5]

-$2 280 [1]


Trade payable –

Fam Factory [0.5]

-$2 400 [1]


Discount 

received [0.5]

+$120 [1]



25






No effect [0.5]


No effect [0.5]

Stationery [0.5]

-$70 [0.5]


Capital [0.5]

+$70 [0.5]

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