Accounting Fundamentals - Practical ScenarioJul 30, 2022
Maria is a fresh graduate who lives in Kensington, Sydney. She studied fashion design at the UNSW and graduated a couple of months back. Her passion has always been to start her own clothing store and last week she achieved this by opening her clothing store in Maroubra.
She obtained $10,000 from her father and a short-term loan of $2,000 from the bank. Her father lent the $10,000 as a gift and does not expect Maria to repay it. Maria puts $3,000 from her own savings in order to commence operations.
The clothing store is a rented space for a monthly rent of $2,450. Maria bought cloth racks and display dummies for a cost of $4,600. The Point of Sales system was installed for a cost of $1,250. All other equipment in the store is worth $4,400.
Maria has been designing and developing clothes over the last 6 months. She has 15 unique designs and 165 individual pieces. The combined selling price of all the pieces is $13,200. Maria expects at least $8,000 in sales in the first month. She hired an assistant to help her at the store for a monthly payment of $2,800.
The first month passed and Maria had greater than expected results. Her total revenue was $12,624. 82% of this was direct cash sales and the remaining was done using credit cards. Her bank takes a commission of 2 cents per every dollar she makes from credit card sales.
Required: Using the details given, classify each figure of the scenario into an asset, expense, equity, liability, or revenue. Assume you are at the end of the month.
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