On April 12, The business purchases inventory of 176.000 TL including 10% VAT. The businesswrites a check for 136.000 TL and signs a 9-month note with an annual interest rate of 7% for40.000 TL. Which of the following journal entries would be made on April 12?a. 158.400 TL debit to 153-Inventory; 17.600 TL debit to 191-D. VAT and 136.000 TL credit to101-R. Checks; 40.000 TL credit to 321-N/PO b. 160.000 TL debit to 153-Inventory; 16.000 TL debit to 191-D. VAT and 136.000 TL credit to103-OC&PO; 40.000 TL credit to 321-N/Pc. 176.000 TL debit to 153-Inventory and 136.000 TL credit to 103-OC&PO; 40.000 TLcredit to 321-N/PO d. 158.400 TL debit to 153-Inventory; 17.600 TL debit to 191-D. VAT and 136.000 TL credit to103-OC&PO; 40.000 TL credit to 321-N/P

Value Added Tax is an indirect tax on selling the goods and buying the goods, it is finally charged…

On April 12, The business purchases inventory of 176.000 TL including 10% VAT. The business writes a check for 136.000 TL and signs a 9-month note with an annual interest rate of 7% for 40.000 TL. Which of the following journal entries would be made on April 12?

On April 12, The business purchases inventory of 176.000 TL including 10% VAT. The business writes a check for 136.000 TL and signs a 9-month note with an annual interest rate of 7% for 40.000 TL. Which of the following journal entries would be made on April 12?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EB: Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On...

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Question

On April 12, The business purchases inventory of 176.000 TL including 10% VAT. The business
writes a check for 136.000 TL and signs a 9-month note with an annual interest rate of 7% for
40.000 TL. Which of the following journal entries would be made on April 12?
a. 158.400 TL debit to 153-Inventory; 17.600 TL debit to 191-D. VAT and 136.000 TL credit to
101-R. Checks; 40.000 TL credit to 321-N/P
O b. 160.000 TL debit to 153-Inventory; 16.000 TL debit to 191-D. VAT and 136.000 TL credit to
103-OC&PO; 40.000 TL credit to 321-N/P
c. 176.000 TL debit to 153-Inventory and 136.000 TL credit to 103-OC&PO; 40.000 TL
credit to 321-N/P
O d. 158.400 TL debit to 153-Inventory; 17.600 TL debit to 191-D. VAT and 136.000 TL credit to
103-OC&PO; 40.000 TL credit to 321-N/P

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