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Dashboard Assessment Task 1 Quiz1 Wed

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Question 5 [8 marks] What is the effect on current assets, current liabilities, revenue and expenses of each of the below transactions that occurred during the year ended 30 June 2025? For each transaction select “increase”, “decrease” or “no effect” and dollar amount where required in the table below. Note that for boxes that are blank (that is where there are no drop-down options), no answer is required.The following are some of the transactions that occurred for Black Ltd during the year ended 30 June 2025 (assume all beginning balances = 0). Black Ltd uses the perpetual inventory system: Issued 1,000,000 shares at $2 per share. Purchased Equipment for $240,000 paying $160,000 in cash and the remainder by way of a loan payable at the end of 2 years. Purchased inventory on credit from a supplier for $180,000. Sold $240,000 of products to customers on credit. The cost of the products was $160,000. Paid $60,000 part owing to the supplier. Signed a contract to provide services to a customer for $20,000 in July 2025. [table] | Current assets | Current liabilities | Revenue | Expenses | Impact | Amount | Impact | Amount | Impact | Amount | Impact | Amount 1 | Blank 1 Question 5 IncreaseDecreaseNo effect | | | | Blank 2 Question 5 IncreaseDecreaseNo effect | | Blank 3 Question 5 IncreaseDecreaseNo effect | 2 | Blank 4 Question 5 IncreaseDecreaseNo effect | Blank 5 Question 5 3,0004,0008,00020,00040,00080,000120,000160,000240,000None above | Blank 6 Question 5 IncreaseDecreaseNo effect | | | | Blank 7 Question 5 IncreaseDecreaseNo effect | 3 | Blank 8 Question 5 IncreaseDecreaseNo effect | | Blank 9 Question 5 IncreaseDecreaseNo effect | | | | Blank 10 Question 5 IncreaseDecreaseNo effect | 4 | Blank 11 Question 5 IncreaseDecreaseNo effect | Blank 12 Question 5 3,0004,0008,00020,00040,00080,000120,000160,000240,000None above | | | Blank 13 Question 5 IncreaseDecreaseNo effect | Blank 14 Question 5 3,0004,0008,00020,00040,00080,000120,000160,000240,000None above | Blank 15 Question 5 IncreaseDecreaseNo effect | Blank 16 Question 5 3,0004,0008,00020,00040,00080,000120,000160,000240,000None above 5 | Blank 17 Question 5 IncreaseDecreaseNo effect | | Blank 18 Question 5 IncreaseDecreaseNo effect | | Blank 19 Question 5 IncreaseDecreaseNo effect | | Blank 20 Question 5 IncreaseDecreaseNo effect | 6 | Blank 21 Question 5 IncreaseDecreaseNo effect | | Blank 22 Question 5 IncreaseDecreaseNo effect | | Blank 23 Question 5 IncreaseDecreaseNo effect | | Blank 24 Question 5 IncreaseDecreaseNo effect | [/table]

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We start by restating the scenario in our own words to ensure clarity: Black Ltd has several year‑end transactions in a perpetual inventory system, with all beginning balances at 0. For each transaction, we need the effect on current assets, current liabilities, revenue, and expenses, choosing Increase, Decrease, or No effect, and giving any relevant dollar amounts where provided. Transaction 1: Issued 1,000,000 shares at $2 per share (cash received). This directly affects cash (a current asset) and equity (share capital). Since cash increases by 2,000,000, the effect on current assets is an Increase with amount 2,000,000. There is no impact on current liabilities, revenue, or expenses from issuing share capital. Therefore, current liabilities = No effect, revenue = No effect, expenses = No effect. Transaction 2: Purchased equipment for 240,000, paying 160,000 in cash and the remainder with a loan payable (80,000) due in 2 years. Here, cash (current asset) decreases by 160,000, so current assets show a Decrease of 160,000.......Login to view full explanation

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