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. 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. I hope that you found this proposed solution helpful! If you did please share it! Also, feel free to ask any questions or to comment below. Best of luck!
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!
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AuthorThe 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. Archives
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