Exercise 1 - Pull & Wolf Inc.

1. None posted invoices on purchases of inventory (goods for resale) are 55.000. The invoices have not been paid to the trade creditors (suppliers of goods) as per 31.12.2013.

The transaction should not be included in the books for the fiscal year 2013

The goods for resale account (asset) is debited 55.000

The cost of goods sold account (profit/loss) is credited 55.000

The trade creditors account (liability) is credited 55.000

The cost of goods sold account (profit/loss) is debited 55.000

Submit

2. None posted cash purchase of office supplies is 2.300.

The miscellaneous expense account (profit/loss) is credited 2.300

The transaction should not be included in the books for the fiscal year 2013

The cash account (asset) is credited 2.300

The cash account (asset) is debited 2.300

The miscellaneous expense account (profit/loss) is debited 2.300

Submit

3. None posted depreciations on fixed assets:

Land and buildings = 10.000

Equipment = 5.000

Car = 40.000

Plant and machinery = 25.000

Depreciations on buildings account (profit/loss) is debited 10.000

Depreciations on eqiupment account (profit/loss) is debited 5.000

Depreciations on eqiupment account (profit/loss) is credited 5.000

Depreciations on cars account (profit/loss) is debited 40.000

Depreciations on plant and machinery account (profit/loss) is debited 25.000

Depreciations on cars account (profit/loss) is credited 40.000

Accumulated depreciations on building account (asset) is credited 10.000

Accumulated depreciations on car account (asset) is debited 25.000

Accumulated depreciations on equipment account (asset) is credited 5.000

Accumulated depreciations on equipment account (asset) is debited 5.000

Accumulated depreciations on car account (asset) is credited 40.000

Accumulated depreciations on plant and machinery account (asset) is credited 25.000

Submit

4. None posted interest revenue for Q4 is 1.000 (concerning bank deposit).

The interest revenue account (profit/loss) is credited 1.000

The prepaid expenses account (asset) is debited 1.000

The accrued income account (asset) is credited 1.000

The bank deposit account (asset) is debited 1.000

Submit

5. None posted cost of goods sold for the Q4 is 125.000.

The cost of goods sold account (profit/loss) is debited 125.000

The sales account (profit/loss) is credited 125.000

The inventory account (asset) is credited 125.000

The trade debtors account (asset) is debited 125.000

Submit

6. None posted invoices to customers are 60.000 (the invoices have not been by paid the trade debtors as per 31.12.2013).

The transaction should not be included in the books for the fiscal year 2013.

The accrued income account (asset) is debited 60.000

The sales account (profit/loss) is credited 60.000

The trade debtors account (asset) is debited 60.000

Submit

7. None posted interest expenses for Q4 is 8.000 (concerning bank overdraft).

The interest expenses account (profit/loss) is credited 8.000

The bank overdraft account (liability) is debited 8.000

The interest expenses account (profit/loss) is debited 8.000

The bank overdraft account (liability) is credited 8.000

Submit

8. None posted settlement of the input and output VAT account to the VAT payable account.

The output VAT account (liability) is debited 45.000

The output VAT account (liability) is credited 45.000

The input VAT account (liability) is debited 12.000

The input VAT account (liability) is credited 12.000

The VAT payable account (liability) is debited 12.000 and credited 45.000

The VAT payable account (liability) is credited 12.000 and debited 45.000

Submit

9. Posted prepaid rent of premises of 50.000 booked on the account "Premises expense". The amount is rent for Q1 2014.

The premises account (profit/loss) is credited 50.000

The premises account (profit/loss) is debited 50.000

The prepaid account (asset) is credited 50.000

The prepaid account (asset) is debited 50.000

The Bank account (asset) is credited 50.000

Submit

Exercise 1 - Pull & Wolf Inc.

1. None posted invoices on purchases of inventory (goods for resale) are 55.000. The invoices have not been paid to the trade creditors (suppliers of goods) as per 31.12.2013.

2.

What first name or nickname would you like us to use?

2. None posted cash purchase of office supplies is 2.300.

3. None posted depreciations on fixed assets: Land and buildings = 10.000 Equipment = 5.000 Car = 40.000 Plant and machinery = 25.000

4. None posted interest revenue for Q4 is 1.000 (concerning bank deposit).

5. None posted cost of goods sold for the Q4 is 125.000.

6. None posted invoices to customers are 60.000 (the invoices have not been by paid the trade debtors as per 31.12.2013).

7. None posted interest expenses for Q4 is 8.000 (concerning bank overdraft).

8. None posted settlement of the input and output VAT account to the VAT payable account.

9. Posted prepaid rent of premises of 50.000 booked on the account "Premises expense". The amount is rent for Q1 2014.

3. None posted depreciations on fixed assets:

Land and buildings = 10.000

Equipment = 5.000

Car = 40.000

Plant and machinery = 25.000