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1.On December 1 2015, Manu Company collected from Union College a total of $60,0

ID: 2481200 • Letter: 1

Question

1.On December 1 2015, Manu Company collected from Union College a total of $60,000 as rental fees for three months starting December 1. Make journal entries at the end of accounting period on December 31. 2. Union College Drama Club received $4,040 seasonal tickets from its fans. A review of its records shows that 7% of its tickets have been used. Make journal entries for the Drama Club. 3. Barcelona Inc provides cleaning services. Under the relevant tax laws, Barcelona is required to collect a sales tax on its services at the rate of 15%. During the financial year ended 2015, Barcelona provided services worth $10,000,000. Make necessary journal entries.

Explanation / Answer

1) Bank A/c 60000

To Rental Income 20000

To Advance Rental Income 40000

2) Tickets A/c 3757.2

Bad Debts A/c 282.8

To Bank A/c 4040

3) Bank A/c 11500000

To Cleaning Services 10000000

To Sales Tax A/c 1500000