Megan Picasso began operation on 1 January 2020 under the business name art and decor. The business
Question:
Megan Picasso began operation on 1 January 2020 under the business name art and decor. The business retails decorative paintings and obtain these paintings from it's only supplier Leonard painting corporation. The business also charges services fees for customers who need painting hanging service and indoor decoration consultation. The business is registered for gst which Megan pays annually.
Journal entries for the following :-
(Ledger as well)
1) the business paid 3850 to Leonardo painting corporation for credit purchases made in previous months
2) sold paintings for 6160 (gst inclusive) to cw bank for decorating a new office building and cw bank paid the full amount in cash
3) purchased 4620 of inventory (gst inclusive) from Leonardo painting corporation, paid 40% of the full amount and the remainder was not yet paid
4) sold 22 paintings to KC mall on credit
5) purchased a delivery can that costs 20460 (gst inclusive) with the assistance of a bank loan. Assume that the loan amount is paid directly to the supplier
6) the business hired a marketing consultant to provide advice on marketing strategy and was charged 1320 (gst inclusive) the business has not yet made the payment to the consultant
7) Megan's(owner of business firm) son will attend university next year and needs a computer for studying. Megan purchased a computer at 2090(gst inclusive) for her son using the business's cash at bank
8) provided hanging services to KC mall and cw bank and billed each customer for 6 hours. Cw bank paid on the day the services were performed and KC mall will pay within 30 days
9) business paid utilities bill of 1298 (gst inclusive)
10) paid employees salaries fir the month- gross amount 16030 , payg tax deducted 4008 , staff were paid the net amount in cash
11) the business received a partial payment of 2202 from KC mall for the amount it owed to the business.
12) following the marketing advice , the business successfully attracted a new customer Barclays conference center and made cash sales of painting to it for 5280 (gst inclusive)
13) paid off all debts outstanding to Leonardo painting corporation including any payable at the beginning of the month
14) the business offered decoration consultation to Barclays conference center for 1210 (gst inclusive) . The total amount was settled in full on the day
15) purchased additional office furniture worth 8800 (gst inclusive) , half of the full amount was settled with cash and the remaining 50% was financed through a loan. Assume that the loan amount is paid directly to the seller.
Additional information
1) selling price per painting (gst inclusive)--- 110
2) cost per painting (gst inclusive)----- 66
3) service revenue per hour (gst inclusive)--- 121