determine the accounting elements: The following transactions were made during t
ID: 2502270 • Letter: D
Question
determine the accounting elements:The following transactions were made during the first month of asole proprietor's business operation:
1. Mr. X started a grocery store. He invested $20,000 as initialinvestment.
2. He registered his business, paying $500 for registrationfee.
3. He paid $1,200 for store rent applicable for one year.
4. He incurred and paid $2,000 for the repair of the grocerystore.
5. He purchased merchandise for sale amounting to $20,000paying $15,000 with the balance to be paid after 60 days.
6. He paid $100 for the transportation of the merchandisepurchased.
7. He hired a saleslady for contract of $800 per month salary.
8. He sold $10,000 worth of merchandise for $16,000 for cash.
9. He sold $2,000 worth of merchandise for $35,000 on account.
10. He paid business taxes amounting to $460 during the month.
11. He paid $500 electricity expense during the month.
12. He paid the salary of his saleslady.
13. He paid 50% of this obligation to this supplier.
Explanation / Answer
AccountingElements
3500
AccountingElements
Debit Credit 1 Cash 20000 Capital 20000 2 Registration fee 500 Cash 500 3 Store Rent Expense 1200 Cash 1200 4 Repair expense 2000 Cash 2000 5 Merchandise Inventory 20000 Cash 15000 Accounts Payable 5000 6 7 No accounting elements involved 8 Cost of goods sold 10000 Merchandise Inventory 10000 Cash 16000 Sales 16000 9 Cost of goods sold 2000 Merchandise inventory 2000 Accounts Receivable 3500 Sales3500
10 Tax Expense Account 460 Cash 11 Electricity Expense 500 Cash 500 12 Saleslady's salary 800 Cash 800 13 Accounts Payable 2500 Cash 2500Related Questions
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