Use the transactions given on the table provided. Some information has already been filled in for the ACCOUNTING EQUATION.

Paid Telkom R500 via EFT for business telephone account.

• The Telephone account (an expense) is debited, decreasing Owner's Equity.
• The Bank account (an asset) is credited, decreasing Assets.

Sold goods on credit for R216.

• The Debtors account (an asset) is debited, increasing Assets.
• The Sales account (revenue) is credited, increasing Owner's Equity.

Sold goods on credit for R216 at a mark-up of 80%.

• Calculate the Cost of Sales: Selling Price = Cost $\times$ (1 + Mark-up percentage) $$R216 = \text{Cost} \times (1 + 0.80)$$ $$R216 = \text{Cost} \times 1.80$$ $$\text{Cost} = \frac{R216}{1.80}$$ $$\text{Cost} = R120$$
• The Cost of Sales account (an expense) is debited, decreasing Owner's Equity.
• The Trading Stock account (an asset) is credited, decreasing Assets.