Additional question
You are given the following information
initial investment RM1,100
Purchased 100 pieces of plain T shirt with cash each RM15 per pieces.
Paid Variable Printing Cost with cash RM5 per shirt.
Sold 30 chairs at RM30 each for cash
Sold 30 chairs at RM30 each on credit
Required:
a) Based on cash accounting, prepare the simple statement of cash flow and balance sheet
b) Based on accrual accounting, prepare the simple income statement and balance sheet
a) Cash Accounting
Receipts Assets
T shirts $900 Cash $0
Payments
Plain T shirt $1500 Equity
Printing cost 500 Beginning Equity $1100
Total payments $(2000) Less net cash outflow (1100)
Net cash outflow $(1100) Total equity $0
b) Accrual Accounting
Revenues Assets
T shirts $1800 Cash 0
T-Shirt inventory 800
Expenses Receivables 900
Plain T shirt $900 Total assets 1700
Printing cost 300
Equity
Total expenses (1200) Beginning equity 1100
Add net income 600
Net income $600 Total equity 1700
T Shirt
T-shirts
English: FC Barcelona shirt.