Construction Boys CC, a registered VAT vendor, purchased equipment for R92 000 (inclusive of 15% VAT) on credit from Jayzi Ltd. Arrangements were made to settle the account over a six month period. Which of the following statements is correct when recording the purchase of the equipment in the accounting records of Construction Boys CC? A) Debit equipment account (R105 800), credit VAT output (R13 800), credit creditors control: Jayzi Ltd (R92 000). B) Debit equipment account (R92 000), debit VAT input (R13 800), credit creditors control: Jayzi Ltd (R105 800). C) Debit equipment account (R80 000), debit VAT input (R12 000), credit creditors control: Jayzi Ltd (R92 000). D) Debit equipment account (R92 000), credit VAT output (R12 000), credit creditors control: Jayzi Ltd (R80 000).

Construction Boys CC, a registered VAT vendor, purchased equipment for R92 000 (inclusive of 15% VAT) on credit from Jayzi Ltd. Arrangements were made to settle the account over a six month period. Which of the following statements is correct when recording the purchase of the equipment in the accounting records of Construction Boys CC? A) Debit equipment account (R105 800), credit VAT output (R13 800), credit creditors control: Jayzi Ltd (R92 000). B) Debit equipment account (R92 000), debit VAT input (R13 800), credit creditors control: Jayzi Ltd (R105 800). C) Debit equipment account (R80 000), debit VAT input (R12 000), credit creditors control: Jayzi Ltd (R92 000). D) Debit equipment account (R92 000), credit VAT output (R12 000), credit creditors control: Jayzi Ltd (R80 000).

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section: Chapter Questions

Problem 1MP

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The adjusted trial balance of One Incorporated showed the following at year end: Debit Credit Accounts Payable              1,960,000 Accounts Receivable      1,280,000 Accrued Interest - Note A           30,000 Accrued Interest - Note X                 200,000 Accrued Interest - Note Y                   50,000 Accrued Interest- Note B           24,000 Accumulated Depreciation - Factory Building                 325,000 Accumulated Depreciation- Admin. Building                 200,000 Accumulated Depreciation of Machinery and Equipment                 270,000 Administrative Building      1,000,000 Advances to Customers         148,000 Advances to Suppliers         149,000 Allowance for Doubtful Accounts                   58,000 Bonds Payable              2,000,000 Cash         540,000 Cash fund for acquisition of Building      1,500,000…
The adjusted trial balance of One Incorporated showed the following at year end: Debit Credit Accounts Payable              1,960,000 Accounts Receivable      1,280,000 Accrued Interest - Note A           30,000 Accrued Interest - Note X                 200,000 Accrued Interest - Note Y                   50,000 Accrued Interest- Note B           24,000 Accumulated Depreciation - Factory Building                 325,000 Accumulated Depreciation- Admin. Building                 200,000 Accumulated Depreciation of Machinery and Equipment                 270,000 Administrative Building      1,000,000 Advances to Customers         148,000 Advances to Suppliers         149,000 Allowance for Doubtful Accounts                   58,000 Bonds Payable              2,000,000 Cash         540,000 Cash fund for acquisition of Building      1,500,000…