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Question 1 [38] Mr Getty owns an antique shop in an upmarket suburb of Johannesburg

Accounting

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Question 1 [38] Mr Getty owns an antique shop in an upmarket suburb of Johannesburg. The business uses a perpetual inventory (stock) system. Ignore VAT. Inventory is marked up at 50% on cost. The following transactions took place during December 2020 for Ciabatta Traders: 1. The owner, Mr Getty, took inventory, costing R1 000, for his personal use. 2. Paid BreadSA cash for inventory purchased, R10 500. 3. Purchased an office computer on credit from Rye Computers, R28 200. 4. Purchased inventory on credit, R65 250. 5. Cash sales for the first week, R4 470. 6. Credit sales, R6 975. 7. The owner contributed a desk to the business valued at R7 500. 8. Paid the telephone account, R2 300. 9. Received rent income, R3 000. 10. Sold inventory on credit, R10 125. 11. Paid the first instalment on equipment bought on credit (refer to no. 2), R2 250. 12. Received payment from a debtor, R5 000, as payment on his account. Required: Show how the transactions above for Ciabatta Traders will affect the accounting equation by using the following format: Example: Received a capital contribution of R50 000 in the form of cash. No. ASSETS EQUITY + LIABILITIES DR/+ CR/- DR/- CR/+ DR/- CR/+ 50 000 50 000