Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio
Apr. 30 Received $876,000 from Commerce Bank after signing a 12-month, 8.50 percent, promissory note.
June 6 Purchased merchandise on account at a cost of $98,000. (Assume a perpetual inventory system.)
July 15 Paid for the June 6 purchase.
Aug. 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months’ fees in advance, amounting to $35,500.
Dec. 31 Determined salary and wages of $63,000 were earned but not yet paid as of December 31 (ignore payroll taxes).
Dec. 31 Adjusted the accounts at year-end, relating to interest.
Dec. 31 Adjusted the accounts at year-end, relating to security service.
Required:
For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation.
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Ответ:
Accounts, Amounts, and Effects on the Accounting Equation:
Apr. 30 Assets increase (Cash +$876,000) = Liabilities increase(Promissory note payable (Commercial Bank) +$876,000) + Equity
June 6 Assets increase (Inventory +$98,000) = Liabilities increase (Accounts payable +$98,000) + Equity
July 15 Assets decrease (Cash -$98,000) = Liabilities decrease (Accounts payable -$98,000) + Equity
Aug. 31 Assets increase (Cash +$35,500) = Liabilities increase (Deferred Revenue +$35,500) + Equity
Dec. 31 Assets = Liabilities increase (Salary and wages payable +$63,000) + Equity decrease (Retained earnings (Salary and wages expenses) -$63,000)
Dec. 31 Assets = Liabilities increase (Interest payable +$49,640) + Equity decrease (Retained earnings (Interest Expense) -$49,640)
Dec. 31 Assets = Liabilities decrease (Deferred Revenue -$23,667) + Equity increase (Retained earnings (Security Service Revenue) +$23,667)
Explanation:
a) Data and Analysis:
Apr. 30 Cash $876,000 12-month, 8.50 percent, Promissory note payable (Commercial Bank) $876,000
June 6 Inventory $98,000 Accounts payable $98,000
July 15 Accounts payable $98,000 Cash $98,000
Aug. 31 Cash $35,500 Deferred Revenue $35,500
Dec. 31 Salary and wages expenses $63,000 Salary and wages payable $63,000
Dec. 31 Interest Expense $49,640 Interest payable $49,640 ($876,000 * 8.5% * 8/12)
Dec. 31 Deferred Revenue $23,667 Security Service Revenue $23,667
Ответ:
The Bantu Education Act of 1953, legalized creation and execution of Black peoples education in South Africa. This means splitting of classrooms between the black and whites, the black schools were dilapidated, The teachers were under paid and quality of education was low.
Explanation:
The questions to ask someone who was affected by Bantu Education are:
1. How did the Bantu Act affect your everyday life?
2. Looking back, What are the injustice brought about by the Bantu Act in your memories? And how has the injustice affected your life till this day?
3. How do you think your life might have turned out differently if Bantu Act was never in place?
4. How do you think the past history of apartheid in South African affected the political as well as the social climate in South Africa?.