Following are the information on some transactions of Saint-Germain Ltd. in Paris, France, in 2019 (currency in EU

Question

Following are the information on some transactions of Saint-Germain Ltd. in Paris, France, in 2019 (currency in EU euro, €): Pre-tax cash sales on April 2 totaled €256,000. The VAT rate is 20%. The annual property tax bill for 2019 of €12,000 is received on May 1. The property tax is paid in full on June 30 and is to be adjusted for accrued expense at year end. Saint-Germain has a calendar year end for its accounting and records adjusting entries annually. Saint-Germain’s gross salary amounts to €10,000 for the week ended July 11. Amounts deducted from the employees’ salaries are pension contribution of €495, employment insurance of €178, income tax of €3,465, and health insurance of €950. On July 11, cash is paid to the employees, less the payroll deduction amounts withheld. Accrued interest on December 31 (the company’s yearend) for a three-month, 6%, €10,000 bank loan effective December 1. Interest is payable on the first of each month. In November 2019, a customer sued

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Date Journal Entry Debit Credit 2-Apr Cash £ 307,200 To Revenue £ 256,000 TO VAT Payable £ 51,200 1-May Property tax £ 12,000 To Property Tax Payable £ 12,000 30-Jun Property Tax Payable £ 12,000 To Cash £ 12,000 11-Jul Salaries £ 10,000 To Pension Contribution payable £ 495 To Employment Insurance payable £ 178 To Income tax payable £ 3,465 To Health Insurance £ 950 To Cash £ 4,912 31-Dec Interest £ 50 To Accrued Interest £ 50 10000*6%*1/12 31-Dec Prepaid Property Tax £ 4,000 To Property Tax £ 4,000 (12000/12*4 (Jan-Apr)) E No Journal entry required

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Following are the information on some transactions of Saint-Germain Ltd

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Archived Solution

Date	Journal Entry	Debit	Credit
2-Apr	Cash	£ 307,200
	To Revenue		£ 256,000
	TO VAT Payable		£ 51,200

1-May	Property tax	£ 12,000
	To Property Tax Payable		£ 12,000

30-Jun	Property Tax Payable	£ 12,000
	To Cash		£ 12,000

11-Jul	Salaries	£ 10,000
	To Pension Contribution payable		£ 495
	To Employment Insurance payable		£ 178
	To Income tax payable		£ 3,465
	To Health Insurance		£ 950
	To Cash		£ 4,912

31-Dec	Interest	£ 50
	To Accrued Interest		£ 50
	100006%1/12

31-Dec	Prepaid Property Tax	£ 4,000
	To Property Tax		£ 4,000
	(12000/12*4 (Jan-Apr))
E	No Journal entry required