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Joseph Hill has the following assets and liabilities as at 30Dec2019.
Equipment 6200
Creditors 2800
Car7300
Stock of goods 8100
Debtors 4050
Cash at bank 9100
Cash in hand 195
During the first week of January 2020. The following transactions took place.
a) Hill bought extra equipment on credit for 110 b) Bought stock by cheque 380
c) Paid creditors by cheque 1150
d) Debtors paid us 640 by cheque and 90 by cash
e) Hill paid in an extra 1500 into the business 1300 by cheque and 200 in cash required. Draw up the balance sheet as at 7 January 2020 after the above transactions have been completed​

Respuesta :

Answer:

To draw up the balance sheet as of January 7, 2020, we need to update Joseph Hill's assets and liabilities based on the transactions that took place during the first week of January 2020.

First, let's list the transactions:

a) Equipment purchased on credit: +$110

b) Stock bought by cheque: -$380

c) Creditors paid by cheque: -$1150

d) Debtors paid: +$640 (by cheque) and +$90 (by cash)

e) Additional capital introduced: +$1500 ($1300 by cheque and $200 in cash)

Now, let's update the balance sheet:

Assets:

- Equipment: $6200 + $110 = $6310

- Car: $7300

- Stock of goods: $8100 + $380 = $8480

- Debtors: $4050 - $640 (paid by cheque) - $90 (paid by cash) = $3320

- Cash at bank: $9100 + $1300 (introduced by cheque) = $10400

- Cash in hand: $195 + $200 (introduced in cash) = $395

Total Assets: $6310 (equipment) + $7300 (car) + $8480 (stock) + $3320 (debtors) + $10400 (cash at bank) + $395 (cash in hand) = $32805

Liabilities:

- Creditors: $2800 - $1150 (paid by cheque) = $1650

Total Liabilities: $1650

Now, let's calculate the owner's equity:

Owner's Equity:

- Initial capital: Not provided

- Additional capital introduced: +$1500

Total Owner's Equity: $1500

Now, let's put it all together:

Balance Sheet as of January 7, 2020:

Assets:

- Equipment: $6310

- Car: $7300

- Stock of goods: $8480

- Debtors: $3320

- Cash at bank: $10400

- Cash in hand: $395

Total Assets: $32805

Liabilities:

- Creditors: $1650

Owner's Equity:

- Owner's Capital: Not provided

- Additional Capital: $1500

Total Liabilities and Owner's Equity: $1650 (liabilities) + $1500 (owner's equity) = $3150

This balance sheet reflects the financial position of Joseph Hill's business as of January 7, 2020, after the specified transactions.

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