2013 CS1 HOMEWORK SHEET

  1. Determine the missing figure in each case:

Assets=Liabilities+Owner’s equity

A 39600=+ 32400

B= 40000+ 95500

C345000=+125000

D 83000= 30900+

E=120000+200000

  1. State whether the following would result in a debit or a credit to the account.

a)An asset account decreases in value.

b)A liability increases in value.

c)Owner’s equity decreases in value.

d)An asset account increases in value.

e)A liability account decreases in value.

f)Owner’s equity increases in value.

  1. State whether the following accounts have increased or decreased in value.

a)Bank – debit

b)Accounts receivable – credit

c)Accounts payable – debit

d)Furniture – debit

e)Equipment – credit

f)Owner’s equity – credit

g)Mortgage – debit

h)Bank – credit

i)Accounts payable – credit

j)Furniture – credit

k)Inventories – debit

l)Accounts receivable – debit

m)Loan from bank – credit

n)Motor vehicle – debit

  1. B Lake had the following assets and liabilities. Determine her investment in the business. Cash at Bank $1 000, Accounts Receivable $500, Inventories $750, Equipment $3000, Accounts Payable $250.
  1. Total assets must always equal total liabilities plus total owner’s equity. Discuss this statement.
  1. Compile a glossary for the following terms:

Account

Accounting

Accounting Entity Assumption

Accounting Equation

Accounting Standards

Accounts Payable

Accounts Receivable

Assets

Australian Business Number

Capital

Chart of Accounts

Cost of Goods Sold

Double Entry

Drawings

Expenses

General Journal

Inventories

Journal

Liabilities

Limited Liability

Mortgage

Narration

Owner’s Equity

Partnership

Revenues

Sole Trader

Source Document

Transaction

Trial Balance

Unlimited Liability

Input Tax Credits

Tax Invoice

  1. Complete a transaction table for the following transactions of Peter Bolton’s business for May 2013.

May1Peter contributed $24000 cash to the business as capital (rec’t 001)

5Purchased furniture for $4200 cash (cheque no 62)

2Borrowed funds from XXX Finance Co $28000

15Purchased vehicle from Reef City Ford $18000 cash (cheque 63)

22Paid $1200 to XXX Finance Co (cheque 64)

23Purchased furniture for $15000 (cheque no 65)

25Peter contributed premises to the business valued at $150000 (Memo)

30Bought equipment on credit from Ace Supplies for $34000 and paid a deposit of $5500 (invoice 212, cheque 66)

  1. State the transactions that give rise to the following double entry analysis.

a)Cash at BankDr$4000LandCr$4000

b)FurnitureDr500Acme Furniture CoCr500

c)T EllenDr2000FurnitureCr2000

d)InventoriesDr100CapitalCr100

e)Cash at BankDr2000EquipmentCr2000

f)J BallDr200Cash at BankCr200

g)Cash at BankDr1000Loan from BankCr1000

h)LandDr10000Cash at BankCr10000

i)Cash at BankDr500S GreenCr500

j)M HenryDr1000Cash at BankCr1000

k)Cash at BankDr400L AllenCr400

l)Loan from BankDr500Cash at BankCr500

m)WagesDr2200Cash at BankCr2200

n)T SmithDr5000Service Fees RevenueCr5000

  1. Record the following entries in the General Journal of Maxwell Smart. Post to the ledger and prepare a trial balance as at 28 February 2011.

Feb 3 / Purchased goods from Siegfried Ltd for $2 750 including GST, tax inv 103.
4 / Received adjustment note 45 from Siegfried Ltd for $77, GST inclusive, for goods returned by us.
7 / Sold goods on credit with a cost price of $600 for $1 320 including GST, to James Watt, tax inv 67.
8 / Purchased GST free goods for cash $660, cheque 88
12 / Sent adjustment note 37 for $44 including GST to James Watt for goods returned with a cost price of $20. These goods were originally sold on Feb 7.
15 / Sold goods with a cost price of $250 for $550 GST free, cash register summary.
21 / Paid Siegfried Ltd $2 673, cheque 89.
28 / Paid electricity account of $132 GST inclusive, using cheque 90.