The company HOSTELS, Corp. has carried out the following operations throughout the financial year: 1. The...
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The company HOSTELS, Corp. has carried out the following operations throughout the financial year: 1. The company is founded with: €200,000 deposited in a bank account at the ONATE bank; 10,000 in cash deposited in cash and an hotel worth € 1,000,000 (10% is the value of the land). All this has been financed by the stockholders. 2. HOSTELS acquires a vehicle, paying by bank € 30,000. 3. The company acquires a software worth €1,500, being paid in cash through cash. 4. A building is acquired to locate its headquarters for €3,000,000, with 30% corresponding to the value of the land and the rest to building. The building payment will be made within three years. 5. The company buys different machinery worth € 45,000, paying €5,000 by bank transfer, and leaving the outstanding amount to be paid within 15 days. 6. The debt is paid to the supplier of the machinery, paying € 1,000 in cash and the rest by bank transfer. 7. The company withdraws €3,000 in cash from the bank account which is deposited in the cash in the office. 8. Furniture worth € 6,000 is purchased, accepting a 1-month bill of exchange. 9. When the date arrives, the amount of the previous bill of exchange is paid by bank check. 10. The company requests a loan of € 10,000 over 2 years from its bank, pending a response from it. 11. The bank grants you the previous loan, the money being deposited in a bank account. REQUIRED: 1. Post the previous operations in the journal and post them to the general ledger 2. Prepare the trial balance. The company HOSTELS, Corp. has carried out the following operations throughout the financial year: 1. The company is founded with: €200,000 deposited in a bank account at the ONATE bank; 10,000 in cash deposited in cash and an hotel worth € 1,000,000 (10% is the value of the land). All this has been financed by the stockholders. 2. HOSTELS acquires a vehicle, paying by bank € 30,000. 3. The company acquires a software worth €1,500, being paid in cash through cash. 4. A building is acquired to locate its headquarters for €3,000,000, with 30% corresponding to the value of the land and the rest to building. The building payment will be made within three years. 5. The company buys different machinery worth € 45,000, paying €5,000 by bank transfer, and leaving the outstanding amount to be paid within 15 days. 6. The debt is paid to the supplier of the machinery, paying € 1,000 in cash and the rest by bank transfer. 7. The company withdraws €3,000 in cash from the bank account which is deposited in the cash in the office. 8. Furniture worth € 6,000 is purchased, accepting a 1-month bill of exchange. 9. When the date arrives, the amount of the previous bill of exchange is paid by bank check. 10. The company requests a loan of € 10,000 over 2 years from its bank, pending a response from it. 11. The bank grants you the previous loan, the money being deposited in a bank account. REQUIRED: 1. Post the previous operations in the journal and post them to the general ledger 2. Prepare the trial balance.
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Answer rating: 100% (QA)
Answer Explanation 1 Journal Entry Transaction Accounts Debit Credit 1 Cashat Bank 200000 CashinHand 10000 Land 100000 Building 900000 Common Stock 12... View the full answer
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
Posted Date:
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