Question
Amy Hairdressing Pty Ltd operates a series of hair salons around South Australia and is registered for GST. You are provided with transactions which occurred
Amy Hairdressing Pty Ltd operates a series of hair salons around South Australia and is registered for GST.
You are provided with transactions which occurred in October 20X1.Each transaction is separated below together with a blank general journal template.
Prepare general journal entries for Amy Hairdressing Pty Ltd for each transaction below which includes any GST implications.GST is 10%.Narrations are not required.Round calculations to the nearest dollar where applicable.
1.Oct 1: Paid $1,890 plus GST for telephone expenses.
2.Oct 3: Paid $9,152 including GST for marketing.This is for 12 months future marketing and the company initially recognises prepayments in an asset account.
3.Oct 9: A significant sale was made with a modelling agency for hair services to all of its models.The sale amount was $13,500 plus GST.60% was received in cash and the remainder is to be received in 28 days.
4.Oct 16: Received $4,114 (including GST) from a customer for a sale which occurred on September 8th.
5.Oct 19: In September a customer received hair treatment services which cost $350 plus GST.The customer was to pay for this at the end of October.However, the customer is unhappy with the service and Amy Hairdressing Pty Ltd has decided to not seek payment by the customer and reverse the transaction.
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