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Unit 1: May 2013, Question #1 (f)

3/28/2018

2 Comments

 
No.1 (f) Explanations: 
Note 1:
The purchase of the welding plant will give rise to a liability of $50,000 that is; ($150,000-$100,000), owing to Welders International as only a part payment was made.
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Note 2: The unused office supplies on hand is an asset of D&G Ltd, however the portion that has been used during the period must be expensed. As a result the office supplies balance must be reduced to $2,500 by expensing $22,500, that is; (25,000-$2,500). At the end of the period this expense must be transferred to the Income Statement.
Below are the journal entries with narratives to record the transactions of D&G Ltd.
Picture
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2 Comments
Britney
5/21/2018 05:55:46 pm

I have checked every possible site for solutions and I am glad I found this one. This site not only give you the answers but also the steps that lead up to them. Very impressive!

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Krystal
3/6/2021 04:54:27 pm

Thanks Britney!

I am happy that you found the site helpful!

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    The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.

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