FAC1502 Assignment 7 2024 (Whatspp 0.7.6.9.2.3.4.4.2.23) - Financial Accounting (FAC1502) - Stuvia US
5. Assessment 4
Assessment 4 Opened: Tuesday, 14 May 2024, 8:00 AM Closes: Tuesday, 21 May 2024, 11:00 PM 218909 Attempts allowed: 1 Time limit: 2 hours Grade to pass: 50.00 out of 100.00 Summary of your previous attempts Marks / Grade / State 85.00 100.00 Review Feedback Finished Congratulations, you Submitted Wednesday pass the assessment 5 May 4 , with a distinction. AM Your nal grade for this quiz is Overall feedback Congratulations, you pass the assessment. No more attempts are allowed Back to the course ,Question 1 Answer saved Marked out of 9.00 On 1 September 20.18 Mr Will Turner started a new blacksmith business called Iron Duke. Iron Duke manufactures and sells domestic cast iron furniture. The following transactions took place during the first financial year of the entity ending 31 August 20.19.
- Interest incurred on the purchase of a CNC machine on credit from Big Traders was R660 for the year; no payments or
entries regarding this interest were made yet in the books of Iron Duke.
- Interest due on the long-term loan was R12 500 for the year ending 31 August 20.19 and was paid in cash on 2 September
20.19.
- On 31 August 20.19, Mr Will Turner, decided to trade-in the old delivery van for a new delivery van. The trade-in value was
R14 500, and the cost of the new delivery van was R60 000, with the difference settled in cash. (You only need to do the entry for the acquisition of the new delivery van.) Show the effect of each transaction on the basic accounting equation with a plus sign (+) for an increase and a minus sign (-) for a decrease next to each amount under each element. Also indicate the account(s) that will be affected by each transaction next to the affected elements for the financial year ended 31 August 20.19. (The business makes use of the perpetual inventory system.)
Instructions:
Drag the correct answer into the correct space. An option can be used more than once. If an options has been provided and it is not applicable to the speci c questions please put N/A in the accounts column and a 0 in the amounts column. Keep the transactions strictly in the order they were given. 0 N/A -660 Interest expenses +660 Accrued expenses 0 N/A -12 500 Interest expenses +12 500 Accrued expenses +45 500 Vehicles 0 N/A 0 N/A -45 500 Bank 0 N/A 0 N/A Big Traders/trade receivables control Interest income Accrued income N/A Bank Interest expenses Big Traders/trade payables control Vehicles Accrued expenses 0 +12 500 -660 -45 500 -60 000 +60 000 -12 500 +660 +45 500 ,Question 2 Answer saved Marked out of 23.00 K Swa Traders which uses a perpetual inventory system and a mark-up of 35% on cost price had the following transactions during the
current nancial year:
(a) Bought inventory for R9 000 cash and also paid cash for the carriage on purchases of R1 500. (b) Inventory with a cost price of R4 000 was sold on credit. NOTE: Ignore any VAT implications