ABC company is buying and selling LED TV’s as a branch of a South Korean
manufacturer. The following events took place in 2019.
1. ABC Company is founded by Fırat Tosun and Alper Coşgun on 01.11.2019 with the
equity of 2.000.000 TL, provided 1.000.000 TL by each. Fırat Tosun paid his equity debt by
cash on 01.11.2019, while Alper Coşgun put his land in Polatlı to the company in return to his
equity debt at the same date.
2. The company borrowed 2.400.000 TL from GARANTIBBVA on 01.11.2019. The
loan matures on 31.10.2020, with an annual interest expense of 240.000 TL. The principal and
interest will be paid on 31.10.2020.
3. The company rented its land out to a farmer in return to 48.000 TL for 1 year on
01.12.2019 and the money will be paid at the end of the contract on 30.11.2020.
4. The company sealed a deal with a local radio to advertise its brand for 6 months. The
advertisement service started on 01.12.2019 and ended on 30.05.2020. 30.000 TL is paid in
advance by cash.
5. The company bought a store at CEPA for 1.500.000 to use it as sales office on
01.12.2019. The cost of the store is paid from bank accounts. The useful life of the store is 30
years and the company decided to use double declining balance depreciation method for the
store.
6. The company imported 300 LED TVs from South Korea on 02.12.2019. The total
cost of 300 LED TV is 600.000 TL, including all customs duty and taxes.
7. During December 2019, the company sold 90 LED TVs for 270.000 TL. All
payments received via banks, using credit cards.
You are required to,
a. Book the journal entries for each transaction in the general journal and post them to the
ledgers (40 Points)
b. Book the closing records in the general journal and post them to the ledgers on
31.12.2019 (40 Points)
c. Prepare balance sheet and income statement on 31.12.2019. (20 Points)
ABC company is buying and selling LED TV’s as a branch of a South Korean
manufacturer. The following events took place in 2019.
1. ABC Company is founded by Fırat Tosun and Alper Coşgun on 01.11.2019 with the
equity of 2.000.000 TL, provided 1.000.000 TL by each. Fırat Tosun paid his equity debt by
cash on 01.11.2019, while Alper Coşgun put his land in Polatlı to the company in return to his
equity debt at the same date.
2. The company borrowed 2.400.000 TL from GARANTIBBVA on 01.11.2019. The
loan matures on 31.10.2020, with an annual interest expense of 240.000 TL. The principal and
interest will be paid on 31.10.2020.
3. The company rented its land out to a farmer in return to 48.000 TL for 1 year on
01.12.2019 and the money will be paid at the end of the contract on 30.11.2020.
4. The company sealed a deal with a local radio to advertise its brand for 6 months. The
advertisement service started on 01.12.2019 and ended on 30.05.2020. 30.000 TL is paid in
advance by cash.
5. The company bought a store at CEPA for 1.500.000 to use it as sales office on
01.12.2019. The cost of the store is paid from bank accounts. The useful life of the store is 30
years and the company decided to use double declining balance depreciation method for the
store.
6. The company imported 300 LED TVs from South Korea on 02.12.2019. The total
cost of 300 LED TV is 600.000 TL, including all customs duty and taxes.
7. During December 2019, the company sold 90 LED TVs for 270.000 TL. All
payments received via banks, using credit cards.
You are required to,
a. Book the journal entries for each transaction in the general journal and post them to the
ledgers (40 Points)
b. Book the closing records in the general journal and post them to the ledgers on
31.12.2019 (40 Points)
c. Prepare balance sheet and income statement on 31.12.2019. (20 Points)
