Week 1 - Class Activity 2 PDF

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Class activity week 1 Techniques in Financial Accounting...

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200973 Techniques in Financial Accounting Week 1 – Class Activity 2 Accounting Equation Exercise A. Use the accounting equation to reflect the impact of the following scenarios (transactions): i.e Increase in assets and an increase in liabilities – therefore the equation remains in balance. 1. Plant and machinery was purchased on credit. accounts payable (liability) 2. Purchased supplies for cash. 3. Paid wages

Increase in (asset).

Increase in (asset).

decrease in cash (asset).

Increase in

Decrease in cash (asset)

Increase wages expense (expense)

4. Issued an invoice to a customer for payment. Increase in accounts receivable (assets) Increase in service revenue (equity)

B. Write up on the following transactions in accounting equation form and then journal entry form. Ensure journal entries are complete (date, account amounts, narration) The following: 1. Cash sale of $400.00 on 1 July 2018. Cash

400

Sales revenue.

400

2. Purchased a motor vehicle on credit on 3 July 2018.

Motor vehicle. Accounts payable

3. Purchased a building for $1,000,000. Borrowed $900,000 from the bank and paid $100,000 cash Building

1,000,000

Loan. Cash

900,000 100,000...