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程序代写案例-2022T2
时间：2022-07-01
2022T2
1
Recording Business
Transactions – part one:
Transaction analysis and
double entries
Tutorial 3 Alice SUN
Assessment Timeline
Week1
Lecture
Starts
Tutorial
Starts
Week2
Week3
Week4
Week5
Online
Quiz
(20%)
Week6
Flexibility
Week
No lecture
or tutorial
Week7
Group
Assessment
Starts (20%)
Week8
Week9
Week10
Group
Assessment
Due (20%)
Last lecture
& Tutorial
Final Exam
Period
COMM1140
Final Exam
*Ongoing assessment: Tutorial Participation (Homework + Individual participation)
1
2
2022T2
2
Tutorial Schedule and Content
• Lecture review and discussion
• Discussion Questions: 3.4, 3.6
• Problem Questions: 3.12, 3.18
• Activity
• Socrative
Learning Objectives
• Carry out transaction analysis and determine the impact of transactions on
elements of balance sheets and income statements
• Understand the double‐entry accounting system
• Understand debits and credits in the context of transaction analysis
• Understand how depreciation works
3
4
2022T2
3
Transaction analysis
• Transaction analysis involves an examination of each business
transaction with the aim of understanding its effect on the
accounting equation.
• Accounting equation:
• A=L+OE
• CA + NCA = CL + NCL + OE
• CA + NCA = CL + NCL + SC + (Op. RP + R – E – D)
Transaction analysis
Examples:
1. Borrowed $10 000 cash from the bank.
2. Purchase equipment for $50 000 cash.
3. Catering services provided for an office function; billed customer for $1000
Assets = Liabilities + Owner’s Equity
Cash A/R Equipment Loan Retained profits
+10 000 +10 000
‐ 50 000 +50 000
+ 1000 +1000 (Revenue)
↑11 000 (A) = ↑11 000 (L+OE)
5
6
2022T2
4
Double entry accounting
• The Golden Rule: The accounting equation must always balance.
• It means Debits (Dr) = Credits (Cr).
A + E = L + OE* + R
↑ Dr Dr Cr Cr Cr
↓ Cr Cr Dr Dr Dr
* To help you memorise how debits and credits work, here OE = SC + Op.RP – D
(i.e., R and E are expanded in the accounting equation).
Journal entries
• Journal entries are a shorthand version on transaction analysis.
• They are prepared using the rules of debit and credit : Dr = Cr
Examples:
• Machinery with a life of 5 years is purchased for $5 000 cash:
Dr Machinery 5 000
Cr Cash 5 000
• Straight line depreciation each year, no salvage value :
Dr Depreciation expense 1 000
Cr Accumulated depreciation 1 000
A L OE
Machinery ↑ (Dr) Cash ↓ (Cr) NE NE
A L OE
Accumulated depreciation
(A↓, Cr) NE
Depreciation expense ↑
(OE↓, Dr)
= +
= +
• Accumulated depreciation (a contra asset account, B/S) shows all depreciation charged against an asset to date.
• Depreciation expense (I/S) shows only this year’s depreciation allocation.
7
8
2022T2
5
Journal entries
• Accumulated depreciation (a contra asset account, B/S) shows all depreciation charged against an asset to date.
• Depreciation expense (I/S) shows only this year’s depreciation allocation.
Machine Purchase Year 1 Year 2 Year 3 Year 4 Year 5
Journal
Entries
Dr Machinery 5,000
Cr Cash 5,000
Dr Depreciation expense 1,000
Cr Accumulated depreciation 1,000
Accumulated
Depreciation
‐ 1,000 2,000 3,000 4,000 5,000
Net Book
Value (BV) 5,000 4,000 3,000 2,000 1,000 0
Examples:
• Machinery with a life of 5 years is purchased for $5 000 cash
• Straight line depreciation each year, no salvage value.
Journal entries
• Accumulated depreciation (a contra asset account, B/S) shows all depreciation charged against an asset to date.
• Depreciation expense (I/S) shows only this year’s depreciation allocation.
Year 1 Year 2 Year 3 Year 4 Year 5
Journal
Entries
Dr Dep. exp. 2,500
Cr Acc. dep. 2,500
Dr Dep. exp. 1,000
Cr Acc. dep. 1,000
Dr Dep. exp. 800
Cr Acc. dep. 800
Dr Dep. exp. 500
Cr Acc. dep. 500
Dr Dep. exp. 200
Cr Acc. dep. 200
Acc.
Dep.
2,500 3,500 4,300 4,800 5,000
Net BV 2,500 1,500 700 200 0
Examples:
• Machinery with a life of 5 years is purchased for $5 000 cash
• Accelerated depreciation each year, no salvage value.
oMachine Purchase: same as before, Net Book Value Year 0 = 5,000.
Depreciation Schedule
Year 1 2500
Year 2 1000
Year 3 800
Year 4 500
Year 5 200
9
10
2022T2
6
Journal entries
• Journal entries are a shorthand version on transaction analysis.
• They are prepared using the rules of debit and credit : Dr = Cr
Examples:
• Then the company declares $20 000 dividends:
Dr Retained profits 20 000
Cr Dividends payable 20 000
• When the dividends are paid:
Dr Dividends payable 20 000
Cr Cash 20 000
A L OE
Dividends payable ↑ (Cr) RP ↓ (Dr)
A L OE
Cash ↓ (Cr) Dividends payable ↓ (Dr) NE
= +
= +
Tutorial Question Solutions
*Preparation Questions are for your independent study and will not be discussed in your tutorial.
However, these questions are usually covered in PASS classes should you require further assistance.
11
12
2022T2
7
DQ3.3 – R&OE
Why does an increase in expenses result in a decrease in shareholders’
equity? What other part of the accounting equation is likely to be affected?
Expenses decrease profit, and profit increases retained profits,
which is a part of shareholders’ equity.
It is likely to also increase a liability, such as a payable or decrease
an asset such as cash.
DQ3.6 – Account Balance
Which accounts normally have a debit balance and which
normally have a credit balance?
Assets Liabilities Owners’ equity Revenues Expenses
Debit Credit Credit Credit Debit
• Cash
• Accounts receivable
• Inventory
• Land & buildings
• Prepayments
• Accounts payable
• Loan
• Revenue received
in advance
(unearned revenue)
• Share capital
• Retained profits
• Sales revenue
• Services revenue
• Salaries and
wages expense
• Rent expense
• Depreciation
expense
13
14
2022T2
8
P3.12 – Prepare simple journal entries
1. Borrowed $80 000 cash from the bank with an agreement to pay back the loan in 4 years with
interest of 10 per cent per annum.
Dr Cash $80 000
Cr Bank loan $80 000
2. Purchased inventory costing $64 000 with cash.
Dr Inventory $64 000
Cr Cash $64 000
3. Purchased additional inventory costing $30 000 on credit.
Dr Inventory $30 000
Cr Accounts payable $30 000
4. Received an $16 000 deposit on a rental property to be rented for the month of January 2020.
Dr Cash $16,000
Cr Unearned revenue $16,000
5. Sold inventory costing $16 000 to customers for $29 000 on account.
Dr COGS $16,000
Cr Inventory $16,000
Dr Accounts receivable $29,000
Cr Sales $29,000
6. Received $11 000 from a customer in question 5.
Dr Cash $11,000
Cr Accounts receivable $11,000
7. Paid $10 000 owing to a supplier.
Dr Accounts payable $10,000
Cr Cash $10,000
P3.12 – Prepare simple journal entries
15
16
2022T2
9
DRAGONS LTD
BALANCE SHEET AS AT 30 JUNE 2018
Assets $ Liabilities and Shareholders’ equity $
Current assets Current liabilities
Cash 14 000 Accounts payable 12 000
Accounts receivable 36 000 Tax payable 6 000
Inventory 42 000
Shareholders’ equity
Share capital 40 000
Retained profits 34 000
92 000 92 000
Required: Prepare journal entries, an income statement for the year ended 30 June 2019
and a balance sheet as at 30/6/2019.
1. Credit sales, $200 000.
2. Cash sales, $6000.
3. Collections from customers, $150 000.
4. Purchases of inventory on credit, $70 000.
5. Payments of accounts payable, $50 000.
6. Cost of goods sold, $80 000.
7. Wages expense, $90 000, not yet paid.
8. Wages paid, $22 000.
9. Paid tax payable, $6000.
10. Cash dividends of $20 000, declared and paid.
During the year ended 30/6/2019, the following information was recorded in the company's accounts:
P3.18 – Journal Entries
1. Credit sales, $200 000.
Dr Accounts receivable $200,000
Cr Sales revenue $200,000
2. Cash sales, $6000.
Dr Cash $6,000
Cr Sales revenue $6,000
3. Collections from customers, $150 000.
Dr Cash $150,000
Cr Accounts receivable $150,000
4. Purchases of inventory on credit, $70 000.
Dr Inventory $70,000
Cr Accounts payable $70,000
5. Payments of accounts payable, $50 000.
Dr Accounts payable $50,000
Cr Cash $50,000
Dragons Ltd – Journal entries
17
18
2022T2
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6. Cost of goods sold, $80 000.
Dr COGS $80,000
Cr Inventory $80,000
7. Wages expense, $90 000, not yet paid.
Dr Wages expense $90,000
Cr Wages payable $90,000
8. Wages paid, $22 000.
Dr Wages payable $22,000
Cr Cash $22,000
9. Paid tax payable, $6000.
Dr Tax payable $6,000
Cr Cash $6,000
10. Cash dividends of $20 000, declared and paid.
Dr Retained Profits $20,000
Cr Cash $20,000
Dragons Ltd – Journal entries
1 Dr Accounts receivable 200,000
Cr Sales revenue 200,000
2 Dr Cash 6,000
Cr Sales revenue 6,000
3 Dr Cash 150,000
Cr Accounts receivable 150,000
4 Dr Inventory 70,000
Cr Accounts payable 70,000
5 Dr Accounts payable 50,000
Cr Cash 50,000
6 Dr COGS 80,000
Cr Inventory 80,000
7 Dr Wages expense 90,000
Cr Wages payable 90,000
8 Dr Wages payable 22,000
Cr Cash 22,000
9 Dr Tax payable 6,000
Cr Cash 6,000
10 Dr Retained Profits 20,000
Cr Cash 20,000
Accounts:
• Accounts receivable
• Sales
• Cash
• Inventory
• Accounts payable
• COGS
• Wages expense
• Wages payable
• Tax payable
• Retained Profit
A
R
A
A
L
E
E
L
L
OE
19
20
2022T2
11
Assets = Liabilities + Owner’s Equity
Cash A/R Inventory A/P Wages payable Tax Payable Retained profits Share capital
Opening bal 14,000 36,000 42,000 12,000 ‐ 6,000 34,000 40,000
1 + 200,000 +200,000 (Sales)
2 + 6,000 +6,000 (Sales)
3 + 150,000 ‐ 150,000
4 + 70,000 + 70,000
5 ‐ 50,000 ‐ 50,000
6 ‐ 80,000 ‐ 80,000 (COGS)
7 + 90,000 ‐ 90,000 (wages exp)
8 ‐ 22,000 ‐ 22,000
9 ‐ 6,000 ‐ 6,000
10 ‐ 20,000 ‐ 20,000 (RP: Dividends)
Total change ↑58000 ↑50,000 ↓10,000 ↑20,000 ↑68,000 ↓6,000 ↑16,000 ‐
Closing bal 72,000 86,000 32,000 32,000 68,000 0 50,000 40,000
190,000 (A) = 190,000 (L+OE)
From the
Balance sheet
30/6/2018
Opening balance + Total
change of the year
Sales↑206,000
COGS: ↑80,000
Wages Exp:↑90,000
Record in Balance
sheet 30/6/2019
Record in Income
statement 30/6/2019
P3.18 – Journal Entries
21
22
2022T2
12
P3.18 – Journal Entries
Activity
23
24
2022T2
13
Preparation for the week 5 quiz
Prepare journal entries and calculated the cash balance at the end of the month, if the opening balance was $75,000.
1. Sold inventory worth $12,000 for $25,000 on credit. 4. Received an electricity bill for $750.
Dr A/R 25k
Cr Sales 25k
Dr COGS 12k
Cr Inventory 12k
Dr Electricity exp 0.75k
Cr Electricity payable 0.75k
2. Received $15,000 from accounts receivable. 5. The month depreciation expense is $2,500.
Dr Cash 15k
Cr A/R 15k
Dr Dep. Exp. 2.5k
Cr Acc. Dep. 2.5k
3. Paid the weekly wage bill of $5,000. 6. Dividends were declared and paid worth $50,000
Dr Wages payable 5k
Cr Cash 5k
Dr Retained Profit – Dividends 50k
Cr Cash 50k
1. Sold inventory worth $12,000 for $25,000 on credit. 5. The month depreciation expense is $2,500.
Dr A/R 25k
Cr Sales 25k
Dr COGS 12k
Cr Inventory 12k
Dr Dep. Exp. 2.5k
Cr Acc. Dep. 2.5k
6. Dividends were declared and paid worth $50,000
Dr Retained Profit – Dividends 50k
2. Received $15,000 from accounts receivable. Cr Cash 50k
Dr Cash 15k
Cr A/R 15k
3. Paid the weekly wage bill of $5,000.
Dr Wages payable 5k
Cr Cash 5k
4. Received an electricity bill for $750.
Dr Electricity exp 0.75k
Cr Electricity payable 0.75k
$
Opening balance of cash 75,000
Add: Accounts receivable 15,000
Less: Wages payable (5,000)
Less: RP – Dividends (50,000)
Closing balance of cash 35,000
Prepare journal entries and calculated the cash balance at the end of the month, if the opening balance was $75,000.
25
26
2022T2
14
DQ3.3 – R&OE
Why does an increase in revenues result in an increase in shareholders’
equity? What other part of the accounting equation is likely to be affected?
Revenues increase profit, and profit increases retained profits,
which is a part of shareholders’ equity.
It is likely that revenues (sales) also increase an asset, such as cash,
or accounts receivable.
27
1
Recording Business
Transactions – part one:
Transaction analysis and
double entries
Tutorial 3 Alice SUN
Assessment Timeline
Week1
Lecture
Starts
Tutorial
Starts
Week2
Week3
Week4
Week5
Online
Quiz
(20%)
Week6
Flexibility
Week
No lecture
or tutorial
Week7
Group
Assessment
Starts (20%)
Week8
Week9
Week10
Group
Assessment
Due (20%)
Last lecture
& Tutorial
Final Exam
Period
COMM1140
Final Exam
*Ongoing assessment: Tutorial Participation (Homework + Individual participation)
1
2
2022T2
2
Tutorial Schedule and Content
• Lecture review and discussion
• Discussion Questions: 3.4, 3.6
• Problem Questions: 3.12, 3.18
• Activity
• Socrative
Learning Objectives
• Carry out transaction analysis and determine the impact of transactions on
elements of balance sheets and income statements
• Understand the double‐entry accounting system
• Understand debits and credits in the context of transaction analysis
• Understand how depreciation works
3
4
2022T2
3
Transaction analysis
• Transaction analysis involves an examination of each business
transaction with the aim of understanding its effect on the
accounting equation.
• Accounting equation:
• A=L+OE
• CA + NCA = CL + NCL + OE
• CA + NCA = CL + NCL + SC + (Op. RP + R – E – D)
Transaction analysis
Examples:
1. Borrowed $10 000 cash from the bank.
2. Purchase equipment for $50 000 cash.
3. Catering services provided for an office function; billed customer for $1000
Assets = Liabilities + Owner’s Equity
Cash A/R Equipment Loan Retained profits
+10 000 +10 000
‐ 50 000 +50 000
+ 1000 +1000 (Revenue)
↑11 000 (A) = ↑11 000 (L+OE)
5
6
2022T2
4
Double entry accounting
• The Golden Rule: The accounting equation must always balance.
• It means Debits (Dr) = Credits (Cr).
A + E = L + OE* + R
↑ Dr Dr Cr Cr Cr
↓ Cr Cr Dr Dr Dr
* To help you memorise how debits and credits work, here OE = SC + Op.RP – D
(i.e., R and E are expanded in the accounting equation).
Journal entries
• Journal entries are a shorthand version on transaction analysis.
• They are prepared using the rules of debit and credit : Dr = Cr
Examples:
• Machinery with a life of 5 years is purchased for $5 000 cash:
Dr Machinery 5 000
Cr Cash 5 000
• Straight line depreciation each year, no salvage value :
Dr Depreciation expense 1 000
Cr Accumulated depreciation 1 000
A L OE
Machinery ↑ (Dr) Cash ↓ (Cr) NE NE
A L OE
Accumulated depreciation
(A↓, Cr) NE
Depreciation expense ↑
(OE↓, Dr)
= +
= +
• Accumulated depreciation (a contra asset account, B/S) shows all depreciation charged against an asset to date.
• Depreciation expense (I/S) shows only this year’s depreciation allocation.
7
8
2022T2
5
Journal entries
• Accumulated depreciation (a contra asset account, B/S) shows all depreciation charged against an asset to date.
• Depreciation expense (I/S) shows only this year’s depreciation allocation.
Machine Purchase Year 1 Year 2 Year 3 Year 4 Year 5
Journal
Entries
Dr Machinery 5,000
Cr Cash 5,000
Dr Depreciation expense 1,000
Cr Accumulated depreciation 1,000
Accumulated
Depreciation
‐ 1,000 2,000 3,000 4,000 5,000
Net Book
Value (BV) 5,000 4,000 3,000 2,000 1,000 0
Examples:
• Machinery with a life of 5 years is purchased for $5 000 cash
• Straight line depreciation each year, no salvage value.
Journal entries
• Accumulated depreciation (a contra asset account, B/S) shows all depreciation charged against an asset to date.
• Depreciation expense (I/S) shows only this year’s depreciation allocation.
Year 1 Year 2 Year 3 Year 4 Year 5
Journal
Entries
Dr Dep. exp. 2,500
Cr Acc. dep. 2,500
Dr Dep. exp. 1,000
Cr Acc. dep. 1,000
Dr Dep. exp. 800
Cr Acc. dep. 800
Dr Dep. exp. 500
Cr Acc. dep. 500
Dr Dep. exp. 200
Cr Acc. dep. 200
Acc.
Dep.
2,500 3,500 4,300 4,800 5,000
Net BV 2,500 1,500 700 200 0
Examples:
• Machinery with a life of 5 years is purchased for $5 000 cash
• Accelerated depreciation each year, no salvage value.
oMachine Purchase: same as before, Net Book Value Year 0 = 5,000.
Depreciation Schedule
Year 1 2500
Year 2 1000
Year 3 800
Year 4 500
Year 5 200
9
10
2022T2
6
Journal entries
• Journal entries are a shorthand version on transaction analysis.
• They are prepared using the rules of debit and credit : Dr = Cr
Examples:
• Then the company declares $20 000 dividends:
Dr Retained profits 20 000
Cr Dividends payable 20 000
• When the dividends are paid:
Dr Dividends payable 20 000
Cr Cash 20 000
A L OE
Dividends payable ↑ (Cr) RP ↓ (Dr)
A L OE
Cash ↓ (Cr) Dividends payable ↓ (Dr) NE
= +
= +
Tutorial Question Solutions
*Preparation Questions are for your independent study and will not be discussed in your tutorial.
However, these questions are usually covered in PASS classes should you require further assistance.
11
12
2022T2
7
DQ3.3 – R&OE
Why does an increase in expenses result in a decrease in shareholders’
equity? What other part of the accounting equation is likely to be affected?
Expenses decrease profit, and profit increases retained profits,
which is a part of shareholders’ equity.
It is likely to also increase a liability, such as a payable or decrease
an asset such as cash.
DQ3.6 – Account Balance
Which accounts normally have a debit balance and which
normally have a credit balance?
Assets Liabilities Owners’ equity Revenues Expenses
Debit Credit Credit Credit Debit
• Cash
• Accounts receivable
• Inventory
• Land & buildings
• Prepayments
• Accounts payable
• Loan
• Revenue received
in advance
(unearned revenue)
• Share capital
• Retained profits
• Sales revenue
• Services revenue
• Salaries and
wages expense
• Rent expense
• Depreciation
expense
13
14
2022T2
8
P3.12 – Prepare simple journal entries
1. Borrowed $80 000 cash from the bank with an agreement to pay back the loan in 4 years with
interest of 10 per cent per annum.
Dr Cash $80 000
Cr Bank loan $80 000
2. Purchased inventory costing $64 000 with cash.
Dr Inventory $64 000
Cr Cash $64 000
3. Purchased additional inventory costing $30 000 on credit.
Dr Inventory $30 000
Cr Accounts payable $30 000
4. Received an $16 000 deposit on a rental property to be rented for the month of January 2020.
Dr Cash $16,000
Cr Unearned revenue $16,000
5. Sold inventory costing $16 000 to customers for $29 000 on account.
Dr COGS $16,000
Cr Inventory $16,000
Dr Accounts receivable $29,000
Cr Sales $29,000
6. Received $11 000 from a customer in question 5.
Dr Cash $11,000
Cr Accounts receivable $11,000
7. Paid $10 000 owing to a supplier.
Dr Accounts payable $10,000
Cr Cash $10,000
P3.12 – Prepare simple journal entries
15
16
2022T2
9
DRAGONS LTD
BALANCE SHEET AS AT 30 JUNE 2018
Assets $ Liabilities and Shareholders’ equity $
Current assets Current liabilities
Cash 14 000 Accounts payable 12 000
Accounts receivable 36 000 Tax payable 6 000
Inventory 42 000
Shareholders’ equity
Share capital 40 000
Retained profits 34 000
92 000 92 000
Required: Prepare journal entries, an income statement for the year ended 30 June 2019
and a balance sheet as at 30/6/2019.
1. Credit sales, $200 000.
2. Cash sales, $6000.
3. Collections from customers, $150 000.
4. Purchases of inventory on credit, $70 000.
5. Payments of accounts payable, $50 000.
6. Cost of goods sold, $80 000.
7. Wages expense, $90 000, not yet paid.
8. Wages paid, $22 000.
9. Paid tax payable, $6000.
10. Cash dividends of $20 000, declared and paid.
During the year ended 30/6/2019, the following information was recorded in the company's accounts:
P3.18 – Journal Entries
1. Credit sales, $200 000.
Dr Accounts receivable $200,000
Cr Sales revenue $200,000
2. Cash sales, $6000.
Dr Cash $6,000
Cr Sales revenue $6,000
3. Collections from customers, $150 000.
Dr Cash $150,000
Cr Accounts receivable $150,000
4. Purchases of inventory on credit, $70 000.
Dr Inventory $70,000
Cr Accounts payable $70,000
5. Payments of accounts payable, $50 000.
Dr Accounts payable $50,000
Cr Cash $50,000
Dragons Ltd – Journal entries
17
18
2022T2
10
6. Cost of goods sold, $80 000.
Dr COGS $80,000
Cr Inventory $80,000
7. Wages expense, $90 000, not yet paid.
Dr Wages expense $90,000
Cr Wages payable $90,000
8. Wages paid, $22 000.
Dr Wages payable $22,000
Cr Cash $22,000
9. Paid tax payable, $6000.
Dr Tax payable $6,000
Cr Cash $6,000
10. Cash dividends of $20 000, declared and paid.
Dr Retained Profits $20,000
Cr Cash $20,000
Dragons Ltd – Journal entries
1 Dr Accounts receivable 200,000
Cr Sales revenue 200,000
2 Dr Cash 6,000
Cr Sales revenue 6,000
3 Dr Cash 150,000
Cr Accounts receivable 150,000
4 Dr Inventory 70,000
Cr Accounts payable 70,000
5 Dr Accounts payable 50,000
Cr Cash 50,000
6 Dr COGS 80,000
Cr Inventory 80,000
7 Dr Wages expense 90,000
Cr Wages payable 90,000
8 Dr Wages payable 22,000
Cr Cash 22,000
9 Dr Tax payable 6,000
Cr Cash 6,000
10 Dr Retained Profits 20,000
Cr Cash 20,000
Accounts:
• Accounts receivable
• Sales
• Cash
• Inventory
• Accounts payable
• COGS
• Wages expense
• Wages payable
• Tax payable
• Retained Profit
A
R
A
A
L
E
E
L
L
OE
19
20
2022T2
11
Assets = Liabilities + Owner’s Equity
Cash A/R Inventory A/P Wages payable Tax Payable Retained profits Share capital
Opening bal 14,000 36,000 42,000 12,000 ‐ 6,000 34,000 40,000
1 + 200,000 +200,000 (Sales)
2 + 6,000 +6,000 (Sales)
3 + 150,000 ‐ 150,000
4 + 70,000 + 70,000
5 ‐ 50,000 ‐ 50,000
6 ‐ 80,000 ‐ 80,000 (COGS)
7 + 90,000 ‐ 90,000 (wages exp)
8 ‐ 22,000 ‐ 22,000
9 ‐ 6,000 ‐ 6,000
10 ‐ 20,000 ‐ 20,000 (RP: Dividends)
Total change ↑58000 ↑50,000 ↓10,000 ↑20,000 ↑68,000 ↓6,000 ↑16,000 ‐
Closing bal 72,000 86,000 32,000 32,000 68,000 0 50,000 40,000
190,000 (A) = 190,000 (L+OE)
From the
Balance sheet
30/6/2018
Opening balance + Total
change of the year
Sales↑206,000
COGS: ↑80,000
Wages Exp:↑90,000
Record in Balance
sheet 30/6/2019
Record in Income
statement 30/6/2019
P3.18 – Journal Entries
21
22
2022T2
12
P3.18 – Journal Entries
Activity
23
24
2022T2
13
Preparation for the week 5 quiz
Prepare journal entries and calculated the cash balance at the end of the month, if the opening balance was $75,000.
1. Sold inventory worth $12,000 for $25,000 on credit. 4. Received an electricity bill for $750.
Dr A/R 25k
Cr Sales 25k
Dr COGS 12k
Cr Inventory 12k
Dr Electricity exp 0.75k
Cr Electricity payable 0.75k
2. Received $15,000 from accounts receivable. 5. The month depreciation expense is $2,500.
Dr Cash 15k
Cr A/R 15k
Dr Dep. Exp. 2.5k
Cr Acc. Dep. 2.5k
3. Paid the weekly wage bill of $5,000. 6. Dividends were declared and paid worth $50,000
Dr Wages payable 5k
Cr Cash 5k
Dr Retained Profit – Dividends 50k
Cr Cash 50k
1. Sold inventory worth $12,000 for $25,000 on credit. 5. The month depreciation expense is $2,500.
Dr A/R 25k
Cr Sales 25k
Dr COGS 12k
Cr Inventory 12k
Dr Dep. Exp. 2.5k
Cr Acc. Dep. 2.5k
6. Dividends were declared and paid worth $50,000
Dr Retained Profit – Dividends 50k
2. Received $15,000 from accounts receivable. Cr Cash 50k
Dr Cash 15k
Cr A/R 15k
3. Paid the weekly wage bill of $5,000.
Dr Wages payable 5k
Cr Cash 5k
4. Received an electricity bill for $750.
Dr Electricity exp 0.75k
Cr Electricity payable 0.75k
$
Opening balance of cash 75,000
Add: Accounts receivable 15,000
Less: Wages payable (5,000)
Less: RP – Dividends (50,000)
Closing balance of cash 35,000
Prepare journal entries and calculated the cash balance at the end of the month, if the opening balance was $75,000.
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26
2022T2
14
DQ3.3 – R&OE
Why does an increase in revenues result in an increase in shareholders’
equity? What other part of the accounting equation is likely to be affected?
Revenues increase profit, and profit increases retained profits,
which is a part of shareholders’ equity.
It is likely that revenues (sales) also increase an asset, such as cash,
or accounts receivable.
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