The following transactions for King Maponga Traders transpired during the month of July 2021 Date Details of transactions 1 3 6 King Maponga, the owner, contributed a delivery vehicle valued at R65 200 to the business. Journal voucher JV 012 was issued King Maponga, the owner, took trading inventory with a cost price of R1000 for personal use. Journal voucher JV 013 was issued Charged an amount of R 1800 to Mr Settler, a debtor, as interest on his overdue account. Journal voucher JV 014 was issued. Settlement discount of R650 was granted to C. Zama, a debtor, for early settlement of his account. Journal voucher JV 015 was issued The bookkeeper erroneously recorded the purchases of a motor vehicle in the office equipment account. The motor vehicle was purchased for R67 000 cash. Journal voucher JV 016 was issued 12 20 26 Mr Dodger, a debtor, was declared insolvent. As a result, he was not able to pay the amount owed of R16 000. The bookkeeper decided to treat the amount as being irrecoverable. Journal voucher JV 017 was issued Record the transactions (per the table above) in the general journal of King Maponga Traders for the month of July 2021. Ignore VAT. (24 Marks)​

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.