Scribd Logo
Upload

Welcome to Scribd!

  • 27 views

    Chapter 2 Tutorial Questions

    Uploaded by

    saule.yesbayeva
    The document provides equity balances for Sen Widyaya in the statement of financial position for Widyaya's Window Washing Services for the years ended June 30, 2024, 2023 and 2022, showing withdrawals and contributions of capital. It also lists exercises involving identifying the effects of various business transactions on financial statements and correcting errors in the financial statements of Amir's Delivery Service.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Chapter 2 Tutorial Questions

    Uploaded by

    saule.yesbayeva
    27 views3 pages
    The document provides equity balances for Sen Widyaya in the statement of financial position for Widyaya's Window Washing Services for the years ended June 30, 2024, 2023 and 2022, showing withdrawals and contributions of capital. It also lists exercises involving identifying the effects of various business transactions on financial statements and correcting errors in the financial statements of Amir's Delivery Service.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides equity balances for Sen Widyaya in the statement of financial position for Widyaya's Window Washing Services for the years ended June 30, 2024, 2023 and 2022, showing withdrawals and contributions of capital. It also lists exercises involving identifying the effects of various business transactions on financial statements and correcting errors in the financial statements of Amir's Delivery Service.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views3 pages

    Chapter 2 Tutorial Questions

    Uploaded by

    saule.yesbayeva
    The document provides equity balances for Sen Widyaya in the statement of financial position for Widyaya's Window Washing Services for the years ended June 30, 2024, 2023 and 2022, showing withdrawals and contributions of capital. It also lists exercises involving identifying the effects of various business transactions on financial statements and correcting errors in the financial statements of Amir's Delivery Service.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Exercise 2.

    Equity balances for Sen Widyaya appearing in the statement of financial positions of
    Widyaya’s Window Washing Services as at 30 June 2024, 2023 and 2022 are set out
    below.

    30 June 30 June 2023 30 June 2022


    2024
    EQUITY
    Sen Widyaya, capital $27 300 $30 000 $28 000

    During 2022–2023, Sen withdrew $15 000 for personal use and also contributed
    additional capital of $10 000. During 2023–2024, he withdrew $15 000 cash for his own
    use in anticipation of profits.

    Required
    (a) Determine the profit/loss earned by the business in each of the 2 years ended 30 June
    2023 and 30 June 2024.
    Exercise 2.14LO5

    List the effect of each of the following transactions upon any or all of the four financial
    statements of a business. Apart from indicating the financial statement(s) involved, use
    appropriate phrases such as ‘increase total assets’, ‘decrease equity’, ‘increase income’,
    ‘decrease cash flow’ to describe the transaction concerned.

    (a) Purchase equipment for cash


    (b) Provide services to a client, with payment to be received within 40 days
    (c) Pay a liability
    (d) Invest additional cash into the business by the owner
    (e) Collect an account receivable in cash
    (f) Pay to register a business name
    (g) Receive the electricity bill in the mail, to be paid within 30 days
    (h) Sell a piece of equipment for cash
    (i) Withdraw cash by the owner for private usage.
    (j) Borrow money on a long-term basis from a bank
    Problem 2.21

    A new business graduate with one subject of accounting prepared the financial
    statements below for Amir’s Delivery Service at the end of the first year of operations.

    AMIR’S DELIVERY SERVICE


    Statement of financial performance
    for the year ended 30 June 2024
    Income
    Delivery fees $ 287 500
    Expenses
    Office rent expense $ 45 000
    Wages expense 107 500
    Office expenses 40 500
    Electricity expense 16 875
    Amir, drawings 28 000
    Depreciation expense
    — vehicle 8 250
    — equipment 2 625
    248 750
    Profit $ 38 750

    AMIR’S DELIVERY SERVICE


    Statement of financial position
    as at 30 June 2024
    Assets Liabilities
    Cash at bank $ 31 500 Accounts payable $ 32 500
    Equipment 43 250 Equity
    Vehicle 52 500 Owner, capital 94 750
    $ 127 250 $ 127 250

    Additional analysis revealed the following:


    1. Delivery fees of $19 375 (owed by clients) were unrecorded at 30 June.
    2. Additional equipment of $6 875 purchased with a bank loan at the end of the month
    had not been recorded.
    3. Office expenses included supplies on hand at 30 June costing $5750.
    4. Wages of $3125 were payable at 30 June.

    Required
    (a) Prepare a corrected statement of financial performance for the year ended 30 June
    2024.
    (b) Prepare a corrected statement of financial position in narrative form as at 30 June
    2024.
    (c) Prepare a statement of changes in equity for the year ended 30 June 2024.
    (d) Discuss the accounting assumptions that Amir has breached.

    You might also like