UPay Pty Ltd is a start-up company and its principal Activity is to provide technology-driven payment solutions for consumers and merchants through its After pay and Pay Now services and businesses.In the first year of operation UPay Pty Ltd generated $156,000 for services provided, 24,000 of which was on account and still outstanding by the year-end.The remaining was received in cash from customers. The company incurred operating expenses of $90000. Of these expenses, $81000 was paid in cash, a balance was still on account at year-end.In addition, UPay Pty Ltd prepaid $13000 for insurance coverage, which would not commence until the second year of operations.The following is the first year’s profit under the accrual basis of accounting

In its first year of operations, Harrington Pty Ltd earned $573,000 in services revenue, $217,740 of which was on account and still outstanding at the end of the reporting period. The remaining $355,260 was received in cash from customers. The company paid expenses of $343,800 in cash. Included in the $343,800 paid is $23,100 for insurance coverage that will not be used until the second year. Additionally, there is $37,000 still owing on account at the end of the reporting period.Important:Enter amounts without "$" sign or any thousands separators, i.e. $46,000 should be written as 46000. For cash-based or accrual-based loss, enter the minus (-) sign in front of the amount, i.e. -45. For expenses, enter amounts without the minus (-) sign.Required:a. Apply cash accounting to calculate the first year profit of Harrington Pty Ltd.Income = $Answer 1 Question 1Expenses = $Answer 2 Question 1Cash-based profit = $Answer 3 Question 1

Jack Pty Ltd prepares his accounts on a monthly basis. He receives an order in March for $3000 worth of goods, the goods are delivered to the customer in May together with an invoice and the account is settled in July. Under an accrual system of accounting, in which month is the $3000 recognised as income?Group of answer choicesMarchIt doesn't matterJulyMay

From the following account balances of Frosty Pty Ltd as at 30 June 2019, what is the total value of the business ASSETS? Cash at bank                                                 $14, 000Accounts receivable (net)                             54,000Inventory                                                         64,000Plant and equipment                                  350,000Goodwill                                                        180,000Accounts payable                                           45,000Borrowings                                                   184,000Provisions                                                        45,000Share capital                                                 240,000Retained earnings                                       148,000

Bhekisizwe (Pty) Ltd is a small business corporation based in Umlazi. The company recently acquired a machine that is used in the process of manufacture and started using it immediately. How much of the cost of the machine can the company claim as a capital allowance in the first year of assessment that the asset is used?

Wombat Pty Ltd purchased inventory with an invoice price of $1,000 and credit termsidentified on the invoice of 2.5/10, n/30. What do these terms mean to Wombat Pty Ltd?a. no discount is applicable if paid within 10 days.b. the full invoice value of $5,000 is payable within 10 days.c. a discount of 2.5% applies no matter when the invoice is paid.d. a discount of 2.5% will be applied if the invoice is paid within 10 days of the date ofthe invoice.