. 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.

A. 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 301 Owner's Capital 41.380 the introduction of Sales Tax in place VAT for the 2019 Fiscal Year. As a fresh student 429 Rent Revenue 10.300 of Accounts, Explain What VAT and Sales taxes are, the differences and similarities that 610 Advertising Expense 600 Salaries and Wages Payable 3.300 exist between the two. (3marks) 726 732 Utilities Expense 900 99.780 99.780 NGULU TA- UTOYA HOTEL 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 TRIAL BALANCE Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies November 30", 2018 Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: Account Number Debit Credit 1. Prepaid insurance is a I-year policy starting November 1, 2014. 101 Cash 3,500 2. A count of supplies shows K750 of unused supplies on November 30. 126 Suppliers 2,080 3. Annual depreciation is K3,000 on the buildings and KI,500 on equipment. 4. The mortgage interest rate is 12% (The mortgage was taken out on November 1.) 130 Prepaid Insurance 2,400 5. Two-thirds of the unearned rent revenue has been earned. 140 Land 12,000 H 6. Salaries of K750 are accrued and unpaid at November 31. 141 Buildings 60,000 Instructions 149 Equipment 15,000 (a) Journalize the adjusting entries on November 30. (b) Prepare ledgers using the three-column form of account. Enter the trial balance amounts and 201 Accounts Payable 4.800 post the adjusting entries. (Use JI as the posting reference.) 208 Unearned Rent Revenue 3.300 (c) Prepare an adjusted trial balance on November 30. 275 Mortgage Payable 40,000 (d) Prepare an income statement and an owner's equity statement for the month of November and a balance sheet at November 30