A monograpy includes the transactions of the month April 2021 of YOUR COMPANY. In order to have completed balance sheet of YOUR COMPANY;

1. Please substitute the first three diğits of your birth year for XYZ in the cash account amount of your company’s balance sheet,
2. Please substitute first three digits of your mobile number for KLM in the cheques received account amount of your company’s balance sheet ,
3. Please calculate what amount should be the Capital Account in order to have balanced sheet of YOUR COMPANY.    (5 points)

BALANCE SHEET of YOUR COMPANY as 1.4.2021
ASSETS		LIABILITY
100 Cash	XYZ.000	500 Capital	?
102 Bank	965.000	300. Bank loans	400.000
101 Cheques received	KLM.400	320 Account Payable	22.500
110 Common Stock	300.000	340 Received Order Advance	230.000
121 Notes Receiveables	177.000	570 Retained Earning	1.443.700
153 Inventory	19.600	360. VAT Payable	126.300
180 Prepaid Expenses	48.000	370. Provisions for tax..relating to    the profit of the period	4.150
255 Office Supplies	15.000	690 Net Profit after tax	14.350
254 Motor Vehicle	60.000
255 Furniture	36.000
252 Building	0
250 Land	450.000
260 Rights	330.000
257 Accum. Depreciation	-41.500
For M. Vehicle:20.000
For furniture:16.000
For Rights:5.500
Total:	?	Total:	?

Note: Inventory (98 x 2000=196.000); Company is using WAC method for Inventory Calculation.

YOUR COMPANY is buying and selling strollers. The followinsg events took place in April 2021. And assume that each month is considered as a fical year. (VAT rate is % 18, company income tax rate is 22%.)

1-Firstly, V.A.T payable has been paid to the relevant tax office by using cash.

2- Company Tax has been paid to the tax office by using cash.

3- Net profit belongs to previous period transferred to the retained earnings.

4- Remember, the company rented a working place from Gimat Management on 1 January 2021, and paid twelve 12 months’ rent 48.000 TL.

5- Remember, the company insured its properties, effective from 1 January to 31 December 2021, and paid an insurance premium of 24.000TL for the whole period of insurance.

6- The company rented its land out to a farmer in return to 24.400 TL for 1 year, starting from 01.04.2021 to 01.04.2022. Contract amount for one month paid to your company at 05/04/2021 by cash .

7-The company made a contract with a local radio to advertise its new type of strollers. The total cost including VAT (30.000+5.400) TL is paid by cash.

8-The company purchased 10.000 strollers from The wholeseller for 950.000 TL(tax excluded) and made expense for transportation 10.000 TL (tax excluded).Transportation expense and its tax were paid in cash. (11.800TL). Cost of strollers including VAT would be paid later. (Company gave a cheque for 1.121.000TL)

9- The company sold 5.000 strollers for 750.000TL for which 230.000 TL was taken in advance payment in the previus account period. After deducting advance payment from the sales amount, the rest including VAT would be paid later. (Company received a cheque 655.000 TL) The company uses WAC method for Inventory.

10. Your company sold out the stocks (200.000 shares) of BCD A.Ş in İMKB (Market stock price for per share is 1,8 TL). The company paid 2.000 TL for the commission. (all payments made and revenues received by using bank account)

11. Whole Notes Receivable has gotten bad debt. The company decided to separate provision for bad debt.

12- A check received (130.000 TL) from the customer collected via Garanti Bank.

13. The Given (150.000TL) cheque to the whole-seller were paid by using bank account.

14- Remember, the company paid interest expense of 7.000 TL and made instalment payment 50.000 TL for its bank loan. (They were paid by cash at the end of April)

15- At the end of April, the company paid salaries of 25.000TL to various employees.

16- During April, the company bought some fuel for its motor vehicle, and paid telephone, electric and water bills (Tax included) 7.080TL. ( Paid by cash)

17- Remember that, if, 391.VAT calculated >191.Deductible VAT + 190. Deferred VAT;

    360 VAT payable = 391.VAT calculated -191.Deductible VAT - 190. Deferred VAT

If, 191.Deductible VAT > 391. VAT calculated;

    190. (Transferred)Deferred VAT= 191.Deductible VAT - 391. VAT calculated

18- Useful life for truck is 4 years, for furniture is 3 years and for rights is 5 years.

Required:

1-Prepare the journal entries (including boot and closing recording) in the general journal and post them to the ledger. If you decide it is necessary to prepare trial balance for your study, you can use it. But it is not necessary to prepare trial balance. 

2-Prepare Income Table

The Weighted Average Cost (WAC) method of inventory valuation uses a weighted average to determine the amount that goes into COGS and inventory. WAC Per Unit = Cost of Goods / Units

First In, First Out (FIFO) is an accounting method in which assets purchased or acquired first are disposed of first. FIFO assumes that the ending inventory consists of items purchased last.

Answer rating: 100% (QA)

Journal Entries Payment of VAT Payable Debit VAT Payable 360 126300 Credit Cash 100 126300 Payment of Company Tax Debit Provisions for tax 370 4150 Cr... View the full answer