Solutions Manual - Solution to exercise 2.4 Joe Conday Statement o...

Solutions Manual Accounting and Finance An Introduction Sev enth edition Eddie McLaney Peter Atrill 1 / 4

PART 1

Financial accounting 2 / 4

CHAPTER 2

Measuring and reporting financial position Solution to exercise 2.4 Joe Conday Statement of financial position as at 1 March £

ASSETS

Bank20,000

EQUITY AND LIABILITIES

Equity20,000 Statement of financial position as at 2 March £

ASSETS

Bank (20,00

0 − 6,000) 14,000

Fixtures and fittings 6,000 Inventories 8,000 Total assets28,000

EQUITY AND LIABILITIES

Equity20,000 Trade payables 8,000 Total equity and liabilities28,000 Statement of financial position as at 3 March £ ASSETS Bank (14,00

0 + 5,000) 19,000

Fixtures and fittings 6,000 Inventories 8,000 Total assets33,000

EQUITY AND LIABILITIES

Equity20,000 Trad e payables 8,000 Borrowings 5,000 Total equity and liabilities33,000 3 / 4

McLaney and Atrill, Accounting and Finance: An Introduction, 7

th edition, Instructor’s Manual on the Web Statement of financial position as at 4 March £

ASSETS

Bank (19,00

0 − 7,000 − 200) 11,800

Fixtures and fittings 6,000 Inventorie s8,000 Motor car 7,000 Total assets32,800 EQUITY AND LIABILITIES Equity (20,000 − 200) 19,800 Trade payables 8,000 Borrowings 5,000 Total equity and liabilities32,800 Statement of financial position as at 5 March £

ASSETS

Bank (11,80

0 − 2,500) 9,300

Fixtures and fittings 6,000 Inventorie s8,000 Motor car 9,000 Total assets32,300

EQUITY AND LIABILITIES

Equity (19,800 − 500) 19,300 Trade payables 8,000 Borrowings 5,000 Total equity and liabilities32,300 Statement of financial position as at 6 March £

ASSETS

Bank (9,300

+ 2,000 − 1,000) 10,300

Fixtures and fittings 6,000 Inventorie s8,000 Motor car 9,000 Total assets33,300

EQUITY AND LIABILITIES

Equity (19,300 + 2,000) 21,300 Trade payables 8,000 Borrowings (5,000 − 1,000) 4,000 Total equity and liabilities33,300

• / 4