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Chapter 2 - Balance Sheets Task A Solutions
Chapter 2 - Balance Sheets Task A Solutions
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Chapter 2 - Balance Sheets Task A
1.
VCE ACCOUNTING UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS CHAPTER 2 – BALANCE SHEETS © Michael Allison. Author’s permission required for external use. Page | 1 Name
Chapter 2 – Task A Terry Teagle decided to open a small business under the name Terry’s Cleaning Service on 1 September 2015. During the first week of September, the business engaged in the following list of transactions. For each of these transactions, prepare the firm’s Balance Sheet and Accounting Equation at that point in time. Sep 1 $9000 was deposited by Terry in a bank account to commence the business. Terry’s Cleaning Service: Balance Sheet as at 1 September 2015 $ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 1 + 1 = 2 marks
2.
VCE ACCOUNTING UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS CHAPTER 2 – BALANCE SHEETS © Michael Allison. Author’s permission required for external use. Page | 2 Sep 2 Cleaning equipment was purchased for $2000 cash. Terry’s Cleaning Service: Balance Sheet as at 2 September 2015
$ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 2 + 1 = 3 marks Sep 3 The firm purchased office furniture on credit from Robert’s Office Furniture for $1700. Terry’s Cleaning Service: Balance Sheet as at 3 September 2015 $ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 2 + 1 = 3 marks
3.
VCE ACCOUNTING UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS CHAPTER 2 – BALANCE SHEETS © Michael Allison. Author’s permission required for external use. Page | 3 Sep 4 The firm borrowed $5000 from ELC Finance Co. Terry’s Cleaning Service: Balance Sheet as at 4 September 2015
$ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 2 + 1 = 3 marks Sep 5 Terry withdrew $800 for personal use. Terry’s Cleaning Service: Balance Sheet as at 5 September 2015 $ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 2 + 1 = 3 marks
4.
VCE ACCOUNTING UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS CHAPTER 2 – BALANCE SHEETS © Michael Allison. Author’s permission required for external use. Page | 4 Sep 6 A payment was made to a creditor, Robert’s Office Furniture, for $300. Terry’s Cleaning Service: Balance Sheet as at 6 September 2015
$ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 2 + 1 = 3 marks Sep 7 The firm sold some of the office furniture purchased on 3 September and received $300 cash. Terry’s Cleaning Service: Balance Sheet as at 7 September 2015 $ $ Assets Liabilities Cash 12300 Accounts payable 1600 Cleaning equipment 2000 ELC Finance Co. 5000 Office furniture 1500 Owner’s Equity Capital 9200 TOTAL 15800 TOTAL 15800 Assets = Liabilities + Owner’s Equity = + 2 + 1 = 3 marks Total /20 marks
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