General Ledger Use the following information to prepare the GST Clearing ledger account in the...
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Accounting
General Ledger
Use the following information to prepare the GST Clearing ledger account in the T-account format for BFG Company Ltd in the month of June 2021:
(a): Opening balance of $4,125 debit.
(b): Service revenue of $166,000 (excluding GST) with half paid in cash and half on account.
(c): Operating expenses of $132,000 (excluding GST). This includes depreciation of $4,500, interest expense of $2,100, salaries and wages expense of $60,000 and provisional income tax expense of $8,600. All operating expenses are paid in cash, except depreciation and provisional income tax expense.
(d): Equipment purchased for $22,425 (including GST). A bank loan was used to finance the asset purchase.
(e): Last months GST return is filed. IRD pays a refund to the company of $3,500.
(f): Using the direct method, a debt that is deemed uncollectible is written-off. The amount owed is $460 (including GST).
(g): Closing balance to be calculated, so that the account can be closed for the month.
Note: You should use letters (a, b, c, etc.), instead of dates. No reference numbers are required.
TOTAL: 12 MARKS
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