Practical task The company 'House' (VAT payer) sells furniture. The company uses the perpetual inventory system....
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Practical task The company 'House' (VAT payer) sells furniture. The company uses the perpetual inventory system. During December the company completed the following transactions: No. Day Transactions 1. Purchased furniture for €1200 + VAT €252 on account from company 'Garden' Received €6800 in advance from company 'Sun'. Sold furniture for €8900 + VAT €1869 on account to company 'Snow'. Cost of goods sold is €4500. Paid on account to company "Garden' Prepaid one year car insurance, €240. Paid €4000 in advance for the goods to company 'Blue Light'. Purchased furniture for €4940 + VAT €1037.40 and paid cash Paid Personal Income Tax of €540. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 4 6 9 10 10 12 15 15 18 20 26 12. 30 13. 30 14. 30 15. 31 Paid €60 interest of loan to bank. Sold furniture for €4500 + VAT €945 and received cash. Cost of goods sold is €1960 Paid advertising expense of €200 + VAT €42 Paid €12 for bank service Received an electricity bill of €260 + VAT €54.60 Received a telephone bill of €50 + VAT €10.50 Accrued wages and salaries €3000. Deducted Personal Income Tax, Social Insurance contribution. Accrued Social Insurance expense Requirement: 1. Enter transactions into the journal. 2. Closed VAT accounts. 3. Closed income accounts. 4. Closed expenses accounts. Practical task The company 'House' (VAT payer) sells furniture. The company uses the perpetual inventory system. During December the company completed the following transactions: No. Day Transactions 1. Purchased furniture for €1200 + VAT €252 on account from company 'Garden' Received €6800 in advance from company 'Sun'. Sold furniture for €8900 + VAT €1869 on account to company 'Snow'. Cost of goods sold is €4500. Paid on account to company "Garden' Prepaid one year car insurance, €240. Paid €4000 in advance for the goods to company 'Blue Light'. Purchased furniture for €4940 + VAT €1037.40 and paid cash Paid Personal Income Tax of €540. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 4 6 9 10 10 12 15 15 18 20 26 12. 30 13. 30 14. 30 15. 31 Paid €60 interest of loan to bank. Sold furniture for €4500 + VAT €945 and received cash. Cost of goods sold is €1960 Paid advertising expense of €200 + VAT €42 Paid €12 for bank service Received an electricity bill of €260 + VAT €54.60 Received a telephone bill of €50 + VAT €10.50 Accrued wages and salaries €3000. Deducted Personal Income Tax, Social Insurance contribution. Accrued Social Insurance expense Requirement: 1. Enter transactions into the journal. 2. Closed VAT accounts. 3. Closed income accounts. 4. Closed expenses accounts.
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1 Journal Entries No Day Transactions Debit Credit 1 4 Purchased furniture for 1200 VAT 252 on account from company Garden 1552 Garden Accounts Payabl... View the full answer
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Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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