[TYPE THE COMPANY NAME]
FAC1502 Assignment 1
(100% COMPLETE ANSWERS
+ WORKINGS) Semester 1
2025 - DUE 25 March 2025
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
Opened: Friday, 21 March 2025, 8:00 AM
Closes: Tuesday, 25 March 2025, 9:00 PM
Question 1:
Accounting Equation Impact
,Assets Equity Liabilities
+3,060 +3,060 0
Explanation:
1. Increase in Assets (Bank Account): The client made a direct payment into
Haga Traders' bank account, increasing cash (bank) by R3,060.
2. Increase in Equity (Revenue Earned): The service provided generates
revenue, which increases equity by R3,060.
3. No Impact on Liabilities: This transaction does not involve any liabilities,
so the liability amount remains 0.
Journal Entry:
Account Debit (R) Credit (R)
Bank (Asset) 3,060 -
Service Revenue (Equity) - 3,060
Question 2:
Accounting Equation Impact
Assets Equity Liabilities
-2,000 -3,400 +1,400
Explanation:
1. Decrease in Assets (Bank Account): A payment was made, reducing the
bank balance by R2,000 (which was the available balance).
2. Decrease in Equity (Expense Recorded): A telephone expense of R3,400
is recorded, reducing equity.
3. Increase in Liabilities (Outstanding Payables): Since only R2,000 was
available in the bank, the remaining R1,400 is recorded as an outstanding
liability.
Journal Entry:
Account Debit (R) Credit (R)
Telephone Expense (Equity) 3,400 -
, Account Debit (R) Credit (R)
Bank (Asset) - 2,000
Accounts Payable (Liability) - 1,400
Question 3:
✅ False
Explanation:
Accounting policies must be disclosed in the notes to the financial statements.
These notes provide essential information on how financial data is measured,
recognized, and reported, ensuring transparency and consistency in financial
reporting.
QUESTION 1
Assets Equity Liabilities
3,060 3,060 0
Explanation:
1. Assets (Bank Account Increase): Since the client paid directly
into Haga Traders' bank account, the cash (bank) increases by
R3,060.
2. Equity (Revenue Earned): The service provided generates
revenue, which increases equity by R3,060.
3. Liabilities: No liabilities are affected by this transaction, so the
effect remains 0.
Account Debit and Credit:
Debit: Bank (Asset) → R3,060 (Increase in cash)
FAC1502 Assignment 1
(100% COMPLETE ANSWERS
+ WORKINGS) Semester 1
2025 - DUE 25 March 2025
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
Opened: Friday, 21 March 2025, 8:00 AM
Closes: Tuesday, 25 March 2025, 9:00 PM
Question 1:
Accounting Equation Impact
,Assets Equity Liabilities
+3,060 +3,060 0
Explanation:
1. Increase in Assets (Bank Account): The client made a direct payment into
Haga Traders' bank account, increasing cash (bank) by R3,060.
2. Increase in Equity (Revenue Earned): The service provided generates
revenue, which increases equity by R3,060.
3. No Impact on Liabilities: This transaction does not involve any liabilities,
so the liability amount remains 0.
Journal Entry:
Account Debit (R) Credit (R)
Bank (Asset) 3,060 -
Service Revenue (Equity) - 3,060
Question 2:
Accounting Equation Impact
Assets Equity Liabilities
-2,000 -3,400 +1,400
Explanation:
1. Decrease in Assets (Bank Account): A payment was made, reducing the
bank balance by R2,000 (which was the available balance).
2. Decrease in Equity (Expense Recorded): A telephone expense of R3,400
is recorded, reducing equity.
3. Increase in Liabilities (Outstanding Payables): Since only R2,000 was
available in the bank, the remaining R1,400 is recorded as an outstanding
liability.
Journal Entry:
Account Debit (R) Credit (R)
Telephone Expense (Equity) 3,400 -
, Account Debit (R) Credit (R)
Bank (Asset) - 2,000
Accounts Payable (Liability) - 1,400
Question 3:
✅ False
Explanation:
Accounting policies must be disclosed in the notes to the financial statements.
These notes provide essential information on how financial data is measured,
recognized, and reported, ensuring transparency and consistency in financial
reporting.
QUESTION 1
Assets Equity Liabilities
3,060 3,060 0
Explanation:
1. Assets (Bank Account Increase): Since the client paid directly
into Haga Traders' bank account, the cash (bank) increases by
R3,060.
2. Equity (Revenue Earned): The service provided generates
revenue, which increases equity by R3,060.
3. Liabilities: No liabilities are affected by this transaction, so the
effect remains 0.
Account Debit and Credit:
Debit: Bank (Asset) → R3,060 (Increase in cash)
