SOLUTION: XYZ Company is buying and selling strollers. The followinsg events took place in January 2019. 1- Mr. Ahmet invested 100.000 TL in the business and put this amount into the comp

Algebra ->  Finance -> SOLUTION: XYZ Company is buying and selling strollers. The followinsg events took place in January 2019. 1- Mr. Ahmet invested 100.000 TL in the business and put this amount into the comp      Log On


   

Question 1170664: XYZ Company is buying and selling strollers. The followinsg events took place in January 2019.
1- Mr. Ahmet invested 100.000 TL in the business and put this amount into the company as cash on 1 January 2019.
2- The company recruited 10 persons and the firm rented a working place from Kentpark Management on 1 January 2019, and paid 24-month-rent 48.000 TL. (tax excluded)
3- The company borrowed 1.200.000 TL from a İŞ BANK on 1 January 2019. The loan matures on 31 December 2020, with an annual interest expense of 120.000 TL and the principal of annual payment is 600.000 TL. (They were paid on 31.12.2019)
4- The company insured its properties, effective from 1 January to 31 December 2019, and paid an insurance premium of 24.000TL for the whole period of insurance on 1 January 2019.
5- On 1 January 2019, The company bought a truck for 30.000TL and paid 30.000 TL Consumption Tax, 10.800 TL Value Added Tax. Useful life for truck is 4 years. (Company uses straight line amortization model in indirect recording method)
6- The company purchased office supplies for 23.600 TL (tax included) on 4 February 2019. End of the year a physical count of supplies revealed that 10.000TL worth of such supplies remained unused.
7- On 6 March 2019, the company purchased 11.000 strollers from Babies"R"Us Cooperation for 1.040.000 TL (tax excluded) and paid transportation expense for 16.000 TL (tax excluded) For which transportation expense and its tax were paid in cash. (18.880TL) Stroller and its tax cost would be paid later. (Company gives a cheque 1.227.200TL) (value-added tax rate is % 18)
8- On 7 April 2019, The company sold 5.000 strollers for 900.000TL for which 162.000 TL was taken in cash. The rest would be paid later. (Company gets a cheque 900.000 TL) (value-added tax rate is % 18)
Required:
1-Prepare the journal entries in the general journal and post them to the ledger
2-Prepare balance sheet and income statement on 31.12.2019.

Answer by ikleyn(52782) About Me  (Show Source):
You can put this solution on YOUR website!
.

In this forum, we help to school students in studying Math and solving their Math problems.

It is the profile of this forum and its goal and a function.

At this forum, we do not consult in Finance.


Find another site/forum for this problem and other similar Finance problems.