The account manager of lala land wrote off the debt

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Question 297
The account manager of Lala Land wrote off the debt of one of the customers when the customer was declared bankrupt. The debt was $3,850 including GST. What is the journal entry to record the debt write-off with an adjustment to GST account?
Question 30A retailer purchased 6 bookcases at $1,320 each including GST. A month later he sold all bookcases at $1,760 each including GST. What is the amount of GST payable to the ATO?
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SECTION B: Practical Question section. Total 50 marks.Question 1: (6 + 6 = 12 marks)(a)The trial balance of Wallaby Ltd shown below does not balance.Wallaby LtdTrial Balanceat 30 June 2010_______________________________________________________________________________DebitCreditCash ...................................................................................................$ 2,600Accounts Receivable .........................................................................7,600Supplies .............................................................................................600Equipment .........................................................................................8,300Accounts Payable ..............................................................................$ 9,766Share Capital .....................................................................................1,941Dividends ..........................................................................................1,500Service Revenue ................................................................................15,200Wages Expense .................................................................................3,800Repair Expense .................................................................................1,600Totals ........................................................................................$26,000$26,907An examination of the ledger and journal reveals the following errors:1.Each of the above listed accounts has a normal balance per the general ledger.2.Cash of $350 received from a customer on account was debited to Cash $530 and creditedto Accounts Receivable $530.3.Dividends of $300 paid to shareholders were posted as a credit to Dividends, $300 and acredit to Cash $300.4.Wages Expense of $300 was omitted from the trial balance.5.The purchase of equipment on account for $700 was recorded as a debit to RepairExpense and a credit to Accounts Payable for $700.6.Services were performed on account for a customer, $510, for which Accounts Receivablewas debited $510 and Service Revenue was credited $51.7.A payment on account for $215 was credited to Cash for $215 and credited to AccountsPayable for $251.Instructions: Prepare a correct trial balance (6 marks).Wallaby Ltd9
Trial Balanceat 30 June 2010_______________________________________________________________________________DebitCreditCash ...................................................................................................$ $Accounts Receivable..........................................................................Supplies..............................................................................................Equipment..........................................................................................Accounts Payable ..............................................................................Share Capital......................................................................................Dividends ..........................................................................................Service Revenue ................................................................................Wages Expense .................................................................................Repair Expense .................................................................................Totals..........................................................................................$26,900$26,900Working space:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...

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