Completing the Journal Ernest began operations on 1 July 2017 under the business

Question

Completing the Journal
Ernest began operations on 1 July 2017 under the business name Playert VR Head sets. The business retas the top of the Iine Virtual Reality headsets that notals for $580 (including GST) and costs $275 (including GST) to purchase from a suppier 1O1 Supplies Corporation. Emest also does ins allat ion and artenance work to which he charges $165 (including GST) per hour for his time. The business is currently operating in Meboune's South-East next so vorsity. The business is rogisterod for GST which Emest prys arnualy Relevant information: 1.Playert VR Headsots has the tollowing opening bealanoes at the 1 January in the aument yoar Accounts Pave Accum. Deprecaton-Oftce Fumtre ST Pad 2Transactions for the month of January In the oument year Call dollar amounts Indlude GST where applicable Busness archased a delvery van for sm00 incuing GST) with 27% pat n cash ad the remaor rnaoed mog sooal pranin ABC bark that charged roterest. The motor ve ce s expeCedtolast 6 years. 01/01/2018 02/01/2018 Business pad $48640 (including GST) for a 4 monthe lease on the warehouse 0501/2018 Ernest wehdrew $230 from the business to pay for a friends wedding cake. 0701/2018Business purchased 33 units of inventory on credit from ts usual supplier 10l Supples Corporation 09/01/2018 Busness pad $6065 f wages to employees. 0/01/2018 12/01/2018 Ernest decided to contribute another $28990 into the business. 301/2018Customer purchased $15860 (ncluding GST) worth of VR headsets and paid the whole amount in cash 5/01/2018 Businoss paid $292 to 'TO1 Supplios Corporation for amounts previcusy owing 7/01/2018 Onine customer paid $2200 (ncluding GST) for VR headsets which she picked up on the same day Business purchased $22275 of invertory Iincluding GST) from 101 Supplies Corporation wth $4455 paid in cash and the remainder on cred Catomer prea od Sl 100 (reldrg GST) wrth d VA hadits ard paid 50% d the amort ncasn ard the remam. on credt 2001/2018 Ernest took 10 headsets home for personal use Busress n aced a ciert for rstaron servces pertormed tor a a seo (relang GST). The cert B yet to sette their account Busness sot 68 uits to Atoms Corporaton a now coporate customer, who wrts10 use VR hadsets of thor marketn carian The astomer paid 50% of the amount n cash and the reraner on creat Ernest went out to repair some VR headsets for a clent. The job took 9 hours to compiete. Emest wote an invoice to 21/01/2018 22/01/2018 24/01/2018 26/01/2018 Artemis's det to the business. 9/01/201 001/2018 Business received utity bill for $297 (ncluding GST) that iwill pay in the foliowing month 101/2018By the end of the month business had earned $4117 worth af iterest revenue yet so be receved in casn Businesa recelved a cash payment from Artemis Corporat ion for purchases made previcusly.This amoune settes al of morth

Explanation / Answer

Journal Entries for the month of January, 2018:

Date Particulars Debit Credit 1/1/2018 Motor Vehicle a/c    Dr 79200 To Cash a/c
To Bank loan a/c 15840
63360 2/1/2018 Rent expense a/c Dr 46640 To Cash a/c 46640 5/1/2018 Drawings a/c 230 To Cash a/c 230 7/1/2018 Inventory a/c 9075 To Accounts Payable-IOC supplies corporation a/c
($275*33=9075) 9075 9/1/2018 Wages a/c 6055 To Cash a/c 6055 10/1/2018 Cash a/c 2200 Accounts receivable a/c
To Inventory VR headsets a/c 1100
1100 12/1/2018 Cash a/c 28990 To Capital a/c 28990 13/1/2018 Cash a/c 15950 To Invemtory VR headsets a/c 15950 15/1/2018 Accounts payable - IOC supplies corporation a/c    Dr 292 To Cash a/c 292 17/1/2018 Inventory a/c 1100 To Accounts payable- IOC suoplies corporation a/c
To cash a/c 550
550 20/1/2018 Drawings a/c 5500 To inventory a/c
(550*10) 5500 21/1/2018 Accounts receivable a/c   Dr 660 To Client Installation a/c 660 22/1/2018 Cash a/c   Dr
Artemis Corporation a/c    Dr 18700
18700 To Inventory a/c
(68*$550=) 37400 24/1/2018 Cash a/c   Dr 1485 To service revenue a/c 1485 26/1/2018 Cash a/c 18700 To Artemis Corporation a/c 18700 29/1/2018 Accounts payable a/c 52155 To Cash a/c
( 9075+550+42822)-292 52155 30/1/2018 Utility Expense a/c Dr 297 To Notes Payable a/c 297 31/1/2018 Interest Receivable a/c 4117 To Interest a/c 4117

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.