Question

Rhy’s Fries – Part 2

May 31, 20X1

The convention was a huge success! Ronald’s booth was extremely popular and drew attention from local media and food bloggers. This unexpected boost provided a near non stop flow of customers to his booth. It was hard work but it paid off.

At the end of the convention, Ronald added up all of his sales tickets and was pleased with the results. He had total cash receipts of $9,450 (this included GST on the sales of $450) but he didn’t read all of the fine print in the convention contract he signed. He found out at the end of the event that there was a cleanup and oil disposal fee charged for every barrel of oil used. The fee was $80 (plus GST) per barrel and Ronald used 5 barrels of oil over the course of the weekend. He used the cash he generated from sales to pay the cleanup fee at the end of the convention. He also had 4 bags of potatoes left that he is going to keep in storage.

2.) Complete any journal entries required for these events?

Hint: It may be a good idea to keep updating the T-accounts for the accounts used.

Answer 1

Bank guso cuc TO To D8. gore Ticket, sold arc GST ale ou g oro uso - or 400 cleanup To fees Bomke are euc uoo o.1 Ronald sold the tickets fortauso in which 450$ if GST Amount. Bank Al 18 debited with $9450 for the amount he received from selling tickets. The amount of ast, he received is the liability for him and would be peuld off to havernment that why it is credited.

- Nope-2 hast amount in second antry (The cleanup amount) is not defmed that's why we will ignore it and pass the entry as it is not give • Note 3 The amount of poteetos left out the end of Convention is not given. So we elidn't pass any entry is respect of including it in Storage an - Tickets sold Amount Particular Alc particulary Lay Bankale amow I DA . . Amon Bonk teen portionery Amont Portionen To ticket Sold Ale 9000 By Cleanup fees TOUST ALL too 450