Exercise 72 facts that are taking place in the company So yo

Exercise 7.2 facts that are taking place in the company. So you are required to give accounts: since Gulliver\'s travels is growing rapidly there is a need for journalizing h ournal entries for the following data that took place in the month of April. Use the the journal Equipment Inventories VAT receivable VAT payable Bank Advertising expenses Interest expenses Sales revenue Cost of sales Accounts payable Commissions paid Discounts Booked hotel rooms in hotel Mediterranean Dream in Lloret de Mar for the summer season: April 1: 1,000 210 1.210. VAT21% Invoice P-24 received April 4: Sold a trip to the Costa del Sol to Mr. D. Drawner for 2,800 588 3,388 VAT 21% Invoice S-26 sent. The purchase price of the components of the trip is 2,000 Paid cash for commissions: According to B-34 April 7: 1,200 VAT 21% 252 1.452 April 11: Bought I Pads on account from Office Supply Ltd. 2,100 441 2,541 Invoice P 25 received: VAT 21% April 19: Sent back to Office Supply Ltd. One I Pad. Credit invoice P 26 received: 500 VAT 21% 605 April 23: Discount given to customer L.Ovely because he had to change to a lower priced hotel room due to overbooking. Credit invoice S 27 sent Total amount of the credit invoice, including 21% VAT, is € 363. 82

Solution

Date Ledger Accounts Debit € Credit € Apr-01 Inventories 1000 VAT receivable 210 Accounts payable 1210 (To record hotel rooms booked) Apr-04 Accounts receivable 3388 Sales revenue 2800 VAT payable 588 (To record sale of trip) Apr-04 Cost of sales 2000 Inventories 2000 (To record cost of sales) Apr-07 Commissions paid 1200 VAT receivable 252 Bank 1452 (To record commissions paid) Apr-11 Equipment 2100 VAT receivable 441 Accounts payable 2541 (To record purchase of I Pads) Apr-19 Accounts payable 605 Equipment 500 VAT receivable 105 (To record equipment purchase returns) Apr-23 Discounts 300 VAT payable 63 Accounts receivable 363 (To record discounts given) Apr-27 Accounts payable 8400 Accounts receivable 5100 Bank 3300 (To record cash payments and collections on account) Apr-30 VAT payable 525 Bank 273 VAT receivable 798 (To record settlement of VAT)