2013 CS1 HOMEWORK SHEET
1.
Determine the missing figure in each case:
A
B
C
D
E
Assets
39600
345000
83000
=
=
=
=
=
=
Liabilities
40000 +
30900 +
120000 +
+
Owner’s equity
+
32400
95500
+
125000
200000
2.
State whether the following would result in a debit or a credit to the account.
a) An asset account decreases in value.
b) A liability increases in value.
c) Owner’s equity decreases in value.
d) An asset account increases in value.
e) A liability account decreases in value.
f) Owner’s equity increases in value.
3.
State whether the following accounts have increased or decreased in value.
a) Bank – debit
h) Bank – credit
b) Accounts receivable – credit
i) Accounts payable – credit
c) Accounts payable – debit
j) Furniture – credit
d) Furniture – debit
k) Inventories – debit
e) Equipment – credit
l) Accounts receivable – debit
f) Owner’s equity – credit
m) Loan from bank – credit
g) Mortgage – debit
n) Motor vehicle – debit
4.
B Lake had the following assets and liabilities. Determine her investment in the business. Cash
at Bank $1 000, Accounts Receivable $500, Inventories $750, Equipment $3000, Accounts
Payable $250.
5.
Total assets must always equal total liabilities plus total owner’s equity. Discuss this statement.
6.
Compile a glossary for the following terms:
Account
Accounting
Accounting Entity Assumption
Accounting Equation
Accounting Standards
Accounts Payable
Accounts Receivable
Assets
Australian Business Number
Capital
Chart of Accounts
Cost of Goods Sold
Double Entry
Drawings
Expenses
General Journal
Inventories
Journal
Liabilities
Limited Liability
Mortgage
Narration
Owner’s Equity
Partnership
Revenues
Sole Trader
Source Document
Transaction
Trial Balance
Unlimited Liability
Input Tax Credits
Tax Invoice
7.
Complete a transaction table for the following transactions of Peter Bolton’s business for May
2013.
May 1
5
2
15
22
23
25
30
12.
13.
Peter contributed $24000 cash to the business as capital (rec’t 001)
Purchased furniture for $4200 cash (cheque no 62)
Borrowed funds from XXX Finance Co $28000
Purchased vehicle from Reef City Ford $18000 cash (cheque 63)
Paid $1200 to XXX Finance Co (cheque 64)
Purchased furniture for $15000 (cheque no 65)
Peter contributed premises to the business valued at $150000 (Memo)
Bought equipment on credit from Ace Supplies for $34000 and paid a deposit of $5500
(invoice 212, cheque 66)
State the transactions that give rise to the following double entry analysis.
a) Cash at Bank
Dr
$4000
Land
b) Furniture
Dr
500
Acme Furniture Co
c) T Ellen
Dr
2000
Furniture
d) Inventories
Dr
100
Capital
e) Cash at Bank
Dr
2000
Equipment
f) J Ball
Dr
200
Cash at Bank
g) Cash at Bank
Dr
1000
Loan from Bank
h) Land
Dr
10000
Cash at Bank
i) Cash at Bank
Dr
500
S Green
j) M Henry
Dr
1000
Cash at Bank
k) Cash at Bank
Dr
400
L Allen
l) Loan from Bank
Dr
500
Cash at Bank
m) Wages
Dr
2200
Cash at Bank
n) T Smith
Dr
5000
Service Fees Revenue
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
Cr
$4000
500
2000
100
2000
200
1000
10000
500
1000
400
500
2200
5000
Record the following entries in the General Journal of Maxwell Smart. Post to the ledger and
prepare a trial balance as at 28 February 2011.
Feb 3
4
7
8
12
Purchased goods from Siegfried Ltd for $2 750 including GST, tax inv 103.
Received adjustment note 45 from Siegfried Ltd for $77, GST inclusive, for goods returned by us.
Sold goods on credit with a cost price of $600 for $1 320 including GST, to James Watt, tax inv 67.
Purchased GST free goods for cash $660, cheque 88
Sent adjustment note 37 for $44 including GST to James Watt for goods returned with a cost price
of $20. These goods were originally sold on Feb 7.
15 Sold goods with a cost price of $250 for $550 GST free, cash register summary.
21 Paid Siegfried Ltd $2 673, cheque 89.
28 Paid electricity account of $132 GST inclusive, using cheque 90.