Question
. Ngulu Ta- Utoya Hotel has been in business for several years and had been paying Value Added Tax, recently the Minister of Finance made
. Ngulu Ta- Utoya Hotel has been in business for several years and had been paying Value Added Tax, recently the Minister of Finance made a budget presentation and announced the introduction of Sales Tax in place VAT for the 2019 Fiscal Year. As a fresh student of Accounts, Explain What VAT and Sales taxes are, the differences and similarities that exist between the two. (3marks)
NGULU TA- UTOYA HOTEL
TRIAL BALANCE
November 30th, 2018
Account NumberDebitCredit
101 Cash 3,500
126 Suppliers 2,080
130 Prepaid Insurance 2,400
Land 12,000
Buildings 60,000
149 Equipment 15,000
201 Accounts Payable 4,800
208 Unearned Rent Revenue 3,300
275Mortgage Payable40,000 301Owner's Capital41,380
429Rent Revenue10,300
610 Advertising Expense 600
726 Salaries and Wages Payable 3,300
732 Utilities Expense 900
99,78099,780
In addition to those accounts listed on the trial balance, the chart of accounts for Ngulu Ta- Utoya Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation?Buildings, No. 150 Accumulated Depreciation?Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data:
Prepaid insurance is a 1-year policy starting November 1, 2014.
A count of supplies shows K750 of unused supplies on November 30.
Annual depreciation is K3,000 on the buildings and K1,500 on equipment.
The mortgage interest rate is 12%. (The mortgage was taken out on November 1.)
Two-thirds of the unearned rent revenue has been earned.
Salaries of K750 are accrued and unpaid at November 31.
Instructions
Journalize the adjusting entries on November 30.
Prepare ledgers using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.)
Prepare the adjusted trial balance on November 30.
Prepare the income statement and an owner's equity statement for the month of November and a balance sheet at November 30.
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