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1. M. Lewis opened an Innovation Furniture shop on 01 August. During August, the following transactions of the business took place. (Note GST is ignored). The owner invested cash of $24,000 to start the business. ut of 2. The shop borrowed $6,000 from the bank. 3. A 6-month shop supplies inventory (boxes, scissors, tape, glue gun, ribbon, etc.) was purchased for $1,200 cash. 4. Office equipment was purchased at the cost of $20,000 in cash. 5. A store location was rented and $1,200 was paid for the first month's rent. 6. Inventory of $16,000 was purchased, $6,000 cash was paid to the suppliers and the balance will be paid within 30 days. 7. During the first month, Sales totalled $26,000, of which $10,400 was sold on account. The cost of the goods sold totalled 40% of sales. 8. Paid a total of $ 1,700 of the amount owed to suppliers from the transaction (6). 9. M. Lewis withdrew $ 640 for personal use. Time left 1:28: 10. At the end of the month, a stocktake of the supplies showed an amount of supplies worth $590. Answer the following five (5) questions based on the above information and enter only the whole number as an answer, for example, 123456. Two (2) marks for each correct answer, a total of ten (10) marks. What is the Net income of Innovation Furniture Shop for August ($)? What is the Cash balance on 31 August ($)? What is the Account payable balance on 31 August ($)? What is the Owner's capital balance on 31 August ($)? What is the Expense for August ($)? Next page Woolworths Group Annual Report 2020 ►

1. M. Lewis opened an Innovation Furniture shop on 01 August. During August, the following transactions of the business took place. (Note GST is ignored). The owner invested cash of $24,000 to start the business. ut of 2. The shop borrowed $6,000 from the bank. 3. A 6-month shop supplies inventory (boxes, scissors, tape, glue gun, ribbon, etc.) was purchased for $1,200 cash. 4. Office equipment was purchased at the cost of $20,000 in cash. 5. A store location was rented and $1,200 was paid for the first month's rent. 6. Inventory of $16,000 was purchased, $6,000 cash was paid to the suppliers and the balance will be paid within 30 days. 7. During the first month, Sales totalled $26,000, of which $10,400 was sold on account. The cost of the goods sold totalled 40% of sales. 8. Paid a total of $ 1,700 of the amount owed to suppliers from the transaction (6). 9. M. Lewis withdrew $ 640 for personal use. Time left 1:28: 10. At the end of the month, a stocktake of the supplies showed an amount of supplies worth $590. Answer the following five (5) questions based on the above information and enter only the whole number as an answer, for example, 123456. Two (2) marks for each correct answer, a total of ten (10) marks. What is the Net income of Innovation Furniture Shop for August ($)? What is the Cash balance on 31 August ($)? What is the Account payable balance on 31 August ($)? What is the Owner's capital balance on 31 August ($)? What is the Expense for August ($)? Next page Woolworths Group Annual Report 2020 ►

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 12PB: Prepare journal entries to record the following transactions that occurred in March: A. on first day...
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1. M. Lewis opened an Innovation Furniture shop on 01 August. During August, the following transactions of the business took place. (Note GST is ignored). The owner invested cash of $24,000 to start the business. ut of 2. The shop borrowed $6,000 from the bank. 3. A 6-month shop supplies inventory (boxes, scissors, tape, glue gun, ribbon, etc.) was purchased for $1,200 cash. 4. Office equipment was purchased at the cost of $20,000 in cash. 5. A store location was rented and $1,200 was paid for the first month's rent. 6. Inventory of $16,000 was purchased, $6,000 cash was paid to the suppliers and the balance will be paid within 30 days. 7. During the first month, Sales totalled $26,000, of which $10,400 was sold on account. The cost of the goods sold totalled 40% of sales. 8. Paid a total of $ 1,700 of the amount owed to suppliers from the transaction (6). 9. M. Lewis withdrew $ 640 for personal use. Time left 1:28: 10. At the end of the month, a stocktake of the supplies showed an amount of supplies worth $590. Answer the following five (5) questions based on the above information and enter only the whole number as an answer, for example, 123456. Two (2) marks for each correct answer, a total of ten (10) marks. What is the Net income of Innovation Furniture Shop for August ($)? What is the Cash balance on 31 August ($)? What is the Account payable balance on 31 August ($)? What is the Owner's capital balance on 31 August ($)? What is the Expense for August ($)? Next page Woolworths Group Annual Report 2020 ►
Transcribed Image Text:1. M. Lewis opened an Innovation Furniture shop on 01 August. During August, the following transactions of the business took place. (Note GST is ignored). The owner invested cash of $24,000 to start the business. ut of 2. The shop borrowed $6,000 from the bank. 3. A 6-month shop supplies inventory (boxes, scissors, tape, glue gun, ribbon, etc.) was purchased for $1,200 cash. 4. Office equipment was purchased at the cost of $20,000 in cash. 5. A store location was rented and $1,200 was paid for the first month's rent. 6. Inventory of $16,000 was purchased, $6,000 cash was paid to the suppliers and the balance will be paid within 30 days. 7. During the first month, Sales totalled $26,000, of which $10,400 was sold on account. The cost of the goods sold totalled 40% of sales. 8. Paid a total of $ 1,700 of the amount owed to suppliers from the transaction (6). 9. M. Lewis withdrew $ 640 for personal use. Time left 1:28: 10. At the end of the month, a stocktake of the supplies showed an amount of supplies worth $590. Answer the following five (5) questions based on the above information and enter only the whole number as an answer, for example, 123456. Two (2) marks for each correct answer, a total of ten (10) marks. What is the Net income of Innovation Furniture Shop for August ($)? What is the Cash balance on 31 August ($)? What is the Account payable balance on 31 August ($)? What is the Owner's capital balance on 31 August ($)? What is the Expense for August ($)? Next page Woolworths Group Annual Report 2020 ►
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