Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Charlotte and Nathan runs a partnership which wholesales clothing pants and T-shirts under the business name Charlatan House. Their price list and unit costs (if

Charlotte and Nathan runs a partnership which wholesales clothing pants and T-shirts under the business name Charlatan House.

Their price list and unit costs (if applicable) are shown below.

Products

Price List ($)

Unit Cost ($)

Pants

@ $21.89 (GST Inclusive)

$7.70 (GST Inclusive)

T-shirt

@ $17.60 (GST Inclusive)

$6.05 (GST Inclusive)

Charlatan House is registered for GST, and the following transactions occurred during the first five working days of December 2019 (Monday, 2 December Friday, 6 December 2019).

2 The business purchased $1,320 of office supplies with cash (GST Inclusive).

2 The business made a credit sale 50 pants and 15 T-shirt to their regular customer, SmartyPants Pty. Ltd. (net 7). Delivery was made on the same day.

3 The business purchased 50 pants on credit, 2/10 net 30; the business can opt to either receive 2% discount for payment to the supplier within 10 days or without any discount in 30 days.

3 Charlotte took two (2) pants for personal use.

5 The business client, SmartyPants Pty. Ltd., returned 5 pants purchased on the 2nd of December 2019 as they are not in favour of the colours.

5 Received full payment from SmartyPants Pty. Ltd. on the outstanding balance of the credit sale made during the week.

6 Paid office staff salaries for the week (Gross salaries $2,454; PAYG $686)

Required:

Record the transactions provided above in the general journal provided

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting With Integrated Data Analytics

Authors: Karen Congo Farmer, Amy Fredin

1st Edition

1119731860, 9781119731863

More Books

Students also viewed these Accounting questions