Harley Davi Case Study - Perpetual Inventory System and Maintains a Profit Margin - Accounting Assignment Help

Assignment Task :

QUESTION  1

Harley David started a hardware store, Harley Hardware, on 1 January 2019. He operates the store from leased premises. The store uses a perpetual inventory system and maintains a profit margin of 50%.

The following transactions occurred during January 2019:

1. Harley deposited R100 000 into the store’s current bank account. 

2. Store equipment at a cost of R30 000 was delivered to the store. The supplier will only be paid in February 2019. 

3. Trading inventory was purchased at a cost of R45 750 and was immediately paid by cheque.

4. Hardware was sold for R22 500 on credit. 

5. Harley took hardware with a selling price of R12 000 for his own use at his home.  

6. Hardware was sold for R24 000 cash.  

7. The monthly lease payment of the premises is R2 200 per month, Harley paid R4 400 and the amount was paid by cheque in January.

8. Harley signed a 12 month contract with GO University to deliver 20 liters paint every month. This contract will start in February 2019. The University paid a deposit of R2 400 to secure the contract.

9. Harley paid wages of R3 250 for the month of January.  

 .

Required

1. Enter the above-mentioned transactions under the elements of the accounting equation, indicate if the element will increase (+) or decrease (-) with each transaction. Stipulate next to each transaction which special journal will be used to record the transaction. (16)
2. Determine the performance (indicate profit or loss) of Harley Hardware store for the month of January 2019 (you need to explain/show your calculation, not just amounts).

This Accounting Assignment  has been solved by our Accounting  Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.