Five G Telephones enters into telephone contracts on the following terms and options:

Xyz mobile phones ......................€1,000

Basic Y phones ..........................€ 200

Basic connection service options:

A ...........................................€40 per month

B ...........................................€15 plus 50 cents per call

Combined services:

Supply of Xyz and connection service €79 per month with a minimum contract period of 24 months.

Required:

Record the entries for the first month for each of the possible transactions assuming the following information:

(a) Xyz phones are purchased from a supplier for €500.

(b) Basic phones are purchased from a supplier for €120.

(c) The average user makes 100 calls a month at a variable cost of five cents per call.

(d) Ignore imputed interest.