Hi I just need help with journals ledgers and trial balances
Luxury line sells luxury bags, wallets, shoes and much more. It has been established on 1 January 2019. Luxury line adopts the calendar year as its fiscal year. Below is the statement of financial position as at 30 November 2019: Luxury line Statement of Financial Position 30 November 2019 BHD BHD ASSETS Non-current assets: Building, net 295,417 Furniture, net 24,500 Machines, net 3,167 Total non-current assets 323,084 Current assets: Inventory 17,050 Prepaid Insurance 166,500 Supplies 2,000 Trade receivables 5,116 Cash 20,000 Total current assets 210,666 Total Assets 533,750 Equity: Capital 338,612 Non-current liabilities: Long term borrowing 161,000 Total non-current liabilities Current liabilities: Salary payable 12,000 Trade payables 22,018 VAT Due 120 Total current liabilities 34,138 Total liabilities 195,138 Total Equity & Liabilities 533,750 The following is the most recent chart of accounts for Luxury line Company 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 201 202 203 204 205 206 300 400 401 402 500 501 502 600 601 602 603 604 605 606 607 608 Cash Trade receivables Account receivable Prepaid rent Prepaid insurance Supplies Short-term investments Long-term investments Furniture Machines Buildings Land Accumulated depreciation - Buildings Accumulated depreciation - Machines Accumulated depreciation - furniture Loans Long term borrowing Salary payable Trade payable Account payable Accrued interest payable Capital Sales Sales return & allowance Sales discount Purchases Purchases returns & allowance Purchases discount Fright in Withdrawal Rent expense Salary expense Depreciation expense Travel expense Advertising expense Interest expense Insurance expense Pare 3 of 16 Significant accounting policies Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation Depreciation is provided on a straight-line/double declining basis over the estimated useful lives of the assets other than freehold land which is deemed to have an indefinite life. Depreciation Schedule At 30 November 2019 Description Estimated Depreciation Residual Cost Accumulated Book Value of Assets Useful Method Depreciation Life Buildings 50 years Straight Line BHD 50,000 BHD 300,000 BHD 4,583 BHD 295,417 Furniture 5 years Straight Line BHD 30,000 BHD 5,500 BHD 24,500 Machines 5 years Double BHD 5,000 BHD 1,833 BHD 3,167 Declining value Note: All non-current assets recorded in the Statement of Financial Position as at 30 November 2019 have been acquired on 1 January 2019. All amounts rounded to the nearest BHD. VAT Accounting The company was VAT registered in January 2019. The company charges VAT on their sales, recovers tax on the purchases and expenses and settle the difference with the National Bureau for Revenue (NBR). The company submits a tax return quarterly using the NBR's online portal and makes the payment of the any tax due by the last day of the month following the end of each tax period (quarter). The VAT due was fully paid for the previous tax periods (from January to September 2019). The VAT due for the 4" quarter (from October to December 2019) will be paid during January 2020. In case of excess of recoverable input tax, the company can ask the NBR for a refund of this excess or carry forward this excess to its subsequent tax periods. Additional Information related to Luxury line: . On 1 December, Luxury line paid all the salaries due from last month On 1 December, Luxury line purchased furniture for cash with purchase price BHD 800, discount BHD 50, transportation cost BHD 10. The furniture has 3 years life with no salvage value. It is being deprecation at BHD 21 per month. On 4 December, Luxury line incurred BHD 700 of advertising cost on account. On December 5, Luxury line collected trade receivable from a customer BHD 350, the accountant recorded it at BHD 250 instead of BHD 350. On December 16, the customer returned one Men's leather wallet-Black sold on 13 December Receipt no 1004 On 20 December, the owner of Luxury line withdrew cash worth BHD 2,500 from an official bank account to purchase graduation gift for his son. . On 24 December, the owner of Luxury line invested additional cash BHD 25,000 On 31 December, Luxury line obtained BHD 25,000 bank loan that must be repaid within 11 months On 31 December, Luxury line purchased land for BHD 120,000 with BHD 20,000 as a down payment and a 15-year mortgage for BHD 100,000 For the month of December 2019, Luxury line consumes a total of BHD 750 of electricity. Luxury line received the bill on January 24, 2020 31 December Accrued interest on long term borrowing BHD 4,830. Luxury Line Inventory Count Sheet as at 30 November 2019 Inventory ID Description Cost Per Unit Quantity Inventory Value IN0001 300 15 4,500 INOOO2 300 15 4,500 100 8 800 50 10 500 100 8 800 Leather handbag - Black Leather handbag - Brown Men's Leather wallet - Black Men's Fabric wallet - Brown Women's Leather wallet - Black Men's Fabric wallet - Black Loafers shoes - Brown Sneakers shoes - Blue Sneakers shoes - Red Leather belt - Black 10 INO003 IN0004 INOOOS IN0006 INO007 INO008 INO009 IN0010 500 50 170 10 1,700 80 15 1,200 80 15 1,200 150 on 1,350 AXA Insurance Invoice No.: 1001 AXA Invoice Date: 1 September 2019 Bill to: Luxury Line Manama Kingdom of Bahrain DESCRIPTION AMOUNT Insurance coverage for Luxury Line Building Coverage period: 1 September 2019 to 31 August 2020 BHD 222,000 Total BHD 222,000 Invoice was paid in full on 2 September 2019, Thank you for your business! PAID IN FULL Payment Due Luxury Line Invoice Tracker Invoice Invoice issue Item Q Customer Gross sale Trade Date Name (Before tax Discount (5%) and discount) 1001 15-Dec-19 Men's Leather wallet - Black 1 Ahmed BHD 120 BHD 6 1002 25-Dec-19 Men's Fabric wallet - Brown 1 Isa BHD 220 BHD 11 1003 30-Dec-19 Women's Leather wallet - Black 1 Sarah BHD 320 BHD 16 Total BHD 660 BHD 33 Note: Luxury Line charges 5% value added tax (VAT) on their net sales (sales after discount). 14-Jan-20 25-Dec-19 29-Jan-20 Homecentre homecentre Tax Invoice BILL TO Luxury line Company Invoice #333 SHIP TO Luxury line Company Manama Kingdom of Bahrain Invoice Date: 1 December 2019 Manama Kingdom of Bahrain Customer ID: 1122 Qty Item Units Discount % Unit Price Total Description Desk, brown stained ash veneer 140x65 cm 10 BHD 50 BHD 500 Subtotal BHD 500 VAT BHD 25 Shipping BHD 10 Balance Due BHD 535 R. SALES RECEIPT R.R Stationers Manama Kingdom of Bahrain SOLD TO: Luxury line Manama Kingdom of Bahrain QTY ITEM # DESCRIPTION UNIT PRICE LINE TOTAL RECEIPT #555 Date: 2-Dec-2019 1 Supplies BHD 100 BHD 100 BHD 100 SUBTOTAL SALES TAX BHD 5 TOTAL BHD 105 THANK YOU FOR YOUR BUSINESS! SALES RECEIPT Luxury Line Manama Kingdom of Bahrain Date: 13-Dec-19 Receipt #: 1004 Bill To: Mr. Ali Adel Manama Kingdom of Bahrain Quantity Description 2 Men's Leather wallet - Black Subtotal Unit price BHD 120 Amount BHD 240 BHD 240 Thank you for your business! Subtotal BHD 240 VAT BHD 12 Total BHD 252 SALES RECEIPT Luxury Line Manama Kingdom of Bahrain Date: 23-Dec-19 Receipt #: 1005 Bill To: Mr. Yousif Manama Kingdom of Bahrain Quantity Description Sneakers shoes - Blue Unit price BHD 100 Amount BHD 100 BHD 100 Discount applied BHD 10 BHD 10 Subtotal Thank you for your business! Subtotal VAT BHD 90 BHD 4.5 BHD 94.5 Total Invoice Luxury Line Manama Kingdom of Bahrain Date: 20-Dec-19 Invoice #: 2006 Bill To: Ms. Basma Manama Kingdom of Bahrain Amount Quantity Description 1 Sneakers shoes - Red Subtotal Unit price BHD 100 BHD 100 BHD 100 Discount applied BHD 10 BHD 10 Thank you for your business! Subtotal BHD 90 VAT BHD 4.5 Total BHD 94.5 Purchases tracker Item Seller Tracking a Price Freight in VAT Status Date ordered 1-Dec-19 Payment Date 1-Dec-19 Leather handbag - Black 1 Fashion corner P-100 BHD 300 BHD 10 BHD 15 Paid Leather handbag - Brown House of Fashion P-303 1 BHD 300 BHD 10 BHD 15 3-Dec-19 Outstanding 3-Feb-20 Fashion corner P-101 Men's Leather wallet - Black 1 BHD 100 BHD 10 BHDS 7-Dec-19 Paid 7-Dec-19 P-304 Men's Fabric wallet - Brown House of Fashion 1 BHD 10 BHD 50 BHD 2.5 10-Dec-19 Outstanding 10-Feb-20 P.102 1 Women's Leather wallet - Black Fashion corner BHD 100 BHD 10 BHD 5 Paid 12-Dec-19 12-Dec-19 P-305 Men's Fabric wallet - Black 1 BHD 50 House of Fashion BHD 10 BHD 2.5 18-Dec-19 Outstanding 18-Feb-20 Fashion corner P-103 Loafers shoes - Brown 1 BHD 170 BHD 10 BHD 8.5 20-Dec-19 Paid 20-Dec-19 P-306 1 Sneakers shoes - Blue House of Fashion BHD 80 BHD 10 BHD 4 22-Dec-19 Outstanding 22-Feb-20 P-307 1 Sneakers shoes Red House of Fashion BHD 80 BHD 10 BHD 4 28-Dec-19 Outstanding 28-Feb-20 P-308 Leather belt Black House of Fashion 1 BHD 150 BHD 10 BHD 7.5 30-Dec-19 Outstanding 1-March-20 Email Date 31 December 2019 Dear Accounting officer, We have been informed by our store staff that the inventory count held today has revealed that we have the following inventory on hand: Leather handbag - Black 16 units Leather handbag - Brown 16 units Men's Leather wallet - Black 7 units Men's Fabric wallet - Brown 10 units Women's Leather wallet - Black 8 units Men's Fabric wallet - Black 11 units Loafers shoes - Brown 11 units Sneakers shoes - Blue 15 units Sneakers shoes - Red 15 units Leather belt - Black 10 units Please ensure that the preceding information is reflected correctly on the financial statements. Best regards, Financial Manager Luxury line sells luxury bags, wallets, shoes and much more. It has been established on 1 January 2019. Luxury line adopts the calendar year as its fiscal year. Below is the statement of financial position as at 30 November 2019: Luxury line Statement of Financial Position 30 November 2019 BHD BHD ASSETS Non-current assets: Building, net 295,417 Furniture, net 24,500 Machines, net 3,167 Total non-current assets 323,084 Current assets: Inventory 17,050 Prepaid Insurance 166,500 Supplies 2,000 Trade receivables 5,116 Cash 20,000 Total current assets 210,666 Total Assets 533,750 Equity: Capital 338,612 Non-current liabilities: Long term borrowing 161,000 Total non-current liabilities Current liabilities: Salary payable 12,000 Trade payables 22,018 VAT Due 120 Total current liabilities 34,138 Total liabilities 195,138 Total Equity & Liabilities 533,750 The following is the most recent chart of accounts for Luxury line Company 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 201 202 203 204 205 206 300 400 401 402 500 501 502 600 601 602 603 604 605 606 607 608 Cash Trade receivables Account receivable Prepaid rent Prepaid insurance Supplies Short-term investments Long-term investments Furniture Machines Buildings Land Accumulated depreciation - Buildings Accumulated depreciation - Machines Accumulated depreciation - furniture Loans Long term borrowing Salary payable Trade payable Account payable Accrued interest payable Capital Sales Sales return & allowance Sales discount Purchases Purchases returns & allowance Purchases discount Fright in Withdrawal Rent expense Salary expense Depreciation expense Travel expense Advertising expense Interest expense Insurance expense Pare 3 of 16 Significant accounting policies Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation Depreciation is provided on a straight-line/double declining basis over the estimated useful lives of the assets other than freehold land which is deemed to have an indefinite life. Depreciation Schedule At 30 November 2019 Description Estimated Depreciation Residual Cost Accumulated Book Value of Assets Useful Method Depreciation Life Buildings 50 years Straight Line BHD 50,000 BHD 300,000 BHD 4,583 BHD 295,417 Furniture 5 years Straight Line BHD 30,000 BHD 5,500 BHD 24,500 Machines 5 years Double BHD 5,000 BHD 1,833 BHD 3,167 Declining value Note: All non-current assets recorded in the Statement of Financial Position as at 30 November 2019 have been acquired on 1 January 2019. All amounts rounded to the nearest BHD. VAT Accounting The company was VAT registered in January 2019. The company charges VAT on their sales, recovers tax on the purchases and expenses and settle the difference with the National Bureau for Revenue (NBR). The company submits a tax return quarterly using the NBR's online portal and makes the payment of the any tax due by the last day of the month following the end of each tax period (quarter). The VAT due was fully paid for the previous tax periods (from January to September 2019). The VAT due for the 4" quarter (from October to December 2019) will be paid during January 2020. In case of excess of recoverable input tax, the company can ask the NBR for a refund of this excess or carry forward this excess to its subsequent tax periods. Additional Information related to Luxury line: . On 1 December, Luxury line paid all the salaries due from last month On 1 December, Luxury line purchased furniture for cash with purchase price BHD 800, discount BHD 50, transportation cost BHD 10. The furniture has 3 years life with no salvage value. It is being deprecation at BHD 21 per month. On 4 December, Luxury line incurred BHD 700 of advertising cost on account. On December 5, Luxury line collected trade receivable from a customer BHD 350, the accountant recorded it at BHD 250 instead of BHD 350. On December 16, the customer returned one Men's leather wallet-Black sold on 13 December Receipt no 1004 On 20 December, the owner of Luxury line withdrew cash worth BHD 2,500 from an official bank account to purchase graduation gift for his son. . On 24 December, the owner of Luxury line invested additional cash BHD 25,000 On 31 December, Luxury line obtained BHD 25,000 bank loan that must be repaid within 11 months On 31 December, Luxury line purchased land for BHD 120,000 with BHD 20,000 as a down payment and a 15-year mortgage for BHD 100,000 For the month of December 2019, Luxury line consumes a total of BHD 750 of electricity. Luxury line received the bill on January 24, 2020 31 December Accrued interest on long term borrowing BHD 4,830. Luxury Line Inventory Count Sheet as at 30 November 2019 Inventory ID Description Cost Per Unit Quantity Inventory Value IN0001 300 15 4,500 INOOO2 300 15 4,500 100 8 800 50 10 500 100 8 800 Leather handbag - Black Leather handbag - Brown Men's Leather wallet - Black Men's Fabric wallet - Brown Women's Leather wallet - Black Men's Fabric wallet - Black Loafers shoes - Brown Sneakers shoes - Blue Sneakers shoes - Red Leather belt - Black 10 INO003 IN0004 INOOOS IN0006 INO007 INO008 INO009 IN0010 500 50 170 10 1,700 80 15 1,200 80 15 1,200 150 on 1,350 AXA Insurance Invoice No.: 1001 AXA Invoice Date: 1 September 2019 Bill to: Luxury Line Manama Kingdom of Bahrain DESCRIPTION AMOUNT Insurance coverage for Luxury Line Building Coverage period: 1 September 2019 to 31 August 2020 BHD 222,000 Total BHD 222,000 Invoice was paid in full on 2 September 2019, Thank you for your business! PAID IN FULL Payment Due Luxury Line Invoice Tracker Invoice Invoice issue Item Q Customer Gross sale Trade Date Name (Before tax Discount (5%) and discount) 1001 15-Dec-19 Men's Leather wallet - Black 1 Ahmed BHD 120 BHD 6 1002 25-Dec-19 Men's Fabric wallet - Brown 1 Isa BHD 220 BHD 11 1003 30-Dec-19 Women's Leather wallet - Black 1 Sarah BHD 320 BHD 16 Total BHD 660 BHD 33 Note: Luxury Line charges 5% value added tax (VAT) on their net sales (sales after discount). 14-Jan-20 25-Dec-19 29-Jan-20 Homecentre homecentre Tax Invoice BILL TO Luxury line Company Invoice #333 SHIP TO Luxury line Company Manama Kingdom of Bahrain Invoice Date: 1 December 2019 Manama Kingdom of Bahrain Customer ID: 1122 Qty Item Units Discount % Unit Price Total Description Desk, brown stained ash veneer 140x65 cm 10 BHD 50 BHD 500 Subtotal BHD 500 VAT BHD 25 Shipping BHD 10 Balance Due BHD 535 R. SALES RECEIPT R.R Stationers Manama Kingdom of Bahrain SOLD TO: Luxury line Manama Kingdom of Bahrain QTY ITEM # DESCRIPTION UNIT PRICE LINE TOTAL RECEIPT #555 Date: 2-Dec-2019 1 Supplies BHD 100 BHD 100 BHD 100 SUBTOTAL SALES TAX BHD 5 TOTAL BHD 105 THANK YOU FOR YOUR BUSINESS! SALES RECEIPT Luxury Line Manama Kingdom of Bahrain Date: 13-Dec-19 Receipt #: 1004 Bill To: Mr. Ali Adel Manama Kingdom of Bahrain Quantity Description 2 Men's Leather wallet - Black Subtotal Unit price BHD 120 Amount BHD 240 BHD 240 Thank you for your business! Subtotal BHD 240 VAT BHD 12 Total BHD 252 SALES RECEIPT Luxury Line Manama Kingdom of Bahrain Date: 23-Dec-19 Receipt #: 1005 Bill To: Mr. Yousif Manama Kingdom of Bahrain Quantity Description Sneakers shoes - Blue Unit price BHD 100 Amount BHD 100 BHD 100 Discount applied BHD 10 BHD 10 Subtotal Thank you for your business! Subtotal VAT BHD 90 BHD 4.5 BHD 94.5 Total Invoice Luxury Line Manama Kingdom of Bahrain Date: 20-Dec-19 Invoice #: 2006 Bill To: Ms. Basma Manama Kingdom of Bahrain Amount Quantity Description 1 Sneakers shoes - Red Subtotal Unit price BHD 100 BHD 100 BHD 100 Discount applied BHD 10 BHD 10 Thank you for your business! Subtotal BHD 90 VAT BHD 4.5 Total BHD 94.5 Purchases tracker Item Seller Tracking a Price Freight in VAT Status Date ordered 1-Dec-19 Payment Date 1-Dec-19 Leather handbag - Black 1 Fashion corner P-100 BHD 300 BHD 10 BHD 15 Paid Leather handbag - Brown House of Fashion P-303 1 BHD 300 BHD 10 BHD 15 3-Dec-19 Outstanding 3-Feb-20 Fashion corner P-101 Men's Leather wallet - Black 1 BHD 100 BHD 10 BHDS 7-Dec-19 Paid 7-Dec-19 P-304 Men's Fabric wallet - Brown House of Fashion 1 BHD 10 BHD 50 BHD 2.5 10-Dec-19 Outstanding 10-Feb-20 P.102 1 Women's Leather wallet - Black Fashion corner BHD 100 BHD 10 BHD 5 Paid 12-Dec-19 12-Dec-19 P-305 Men's Fabric wallet - Black 1 BHD 50 House of Fashion BHD 10 BHD 2.5 18-Dec-19 Outstanding 18-Feb-20 Fashion corner P-103 Loafers shoes - Brown 1 BHD 170 BHD 10 BHD 8.5 20-Dec-19 Paid 20-Dec-19 P-306 1 Sneakers shoes - Blue House of Fashion BHD 80 BHD 10 BHD 4 22-Dec-19 Outstanding 22-Feb-20 P-307 1 Sneakers shoes Red House of Fashion BHD 80 BHD 10 BHD 4 28-Dec-19 Outstanding 28-Feb-20 P-308 Leather belt Black House of Fashion 1 BHD 150 BHD 10 BHD 7.5 30-Dec-19 Outstanding 1-March-20 Email Date 31 December 2019 Dear Accounting officer, We have been informed by our store staff that the inventory count held today has revealed that we have the following inventory on hand: Leather handbag - Black 16 units Leather handbag - Brown 16 units Men's Leather wallet - Black 7 units Men's Fabric wallet - Brown 10 units Women's Leather wallet - Black 8 units Men's Fabric wallet - Black 11 units Loafers shoes - Brown 11 units Sneakers shoes - Blue 15 units Sneakers shoes - Red 15 units Leather belt - Black 10 units Please ensure that the preceding information is reflected correctly on the financial statements. Best regards, Financial Manager
