Question

Consider the following operations of the Company Moz,INC for the month of December 2017

1. Invoice - receipt No. 2017 from the 1st Year Accounting and Auditing Panel, Ltd. referring to various goods in the amount of $159,200 with the following discounts:

o 3% resale;

o Prompt payment of 5%;

2. EDM invoice no. 30 in the amount of $1500.00 referring to the energy consumption of December, to be paid in January 2017.

3. He paid the office rent for the month of January 2017 in the amount of $1750.00, check 22550 FNB(bank).

4. No specialization of interest on the financing of GFB BANK, SA was made. to be paid in January 2017 in the amount of $2500.00.

5. Payroll processing:

Base Salt: $95.000,00;

corporate income tax 7.5%;

Unions 1.5%;

social security 7.0%, with 3% being the responsibility of the worker and the remainder of the employer.

It is requested:

Accounting for operations in the Journey entries for the month of December 2016

Answer 1

Solution:

In the Books of MOZ Inc.,

Journal Entries for November,2017

Particulars	Dr.    ($)	Cr.       ($)	Workings
Bank A/c                               Dr.	12736
To Discount on Resale Received		4776	$159200 x 3%
To Discount Received		7960	$159200 x 5%
(Being Discount received on Invoice No.2017)
Electricity Consumption Charges A/c Dr.	1500
To Electricity Charges Payable A/c		1500
(Being Electricity Consumption Charges payable for the month of November)
Prepaid Expenses A/c                        Dr.	24300
To Cash A/c		1750
To Bank A/c		22550
(Being Office Rent for January prepaid in advance)
Interest on Loan A/c                         Dr.	2500
To Interest payable A/c		2500
(Being Interest on GFB Bank payable )
Salaries A/c                                       Dr.	95000
To Income Tax A/c		7125	$95000 x 7.5%
To Unions contibution A/c		1425	$95000 x 1.5%
To Social Security A/c (Employer)		6650	$95000 x 7%
To Social Security A/c (Employee)		2850	$95000 x 3%
To Salaries payable A/c		76950	Remaining Balance
(Being payroll for December accounted)