a) Record note payable and interest.

(LO 1) AP

Udala Uke's had the following transactions involving notes payable.

July

1, 2017

Borrows $50,000 from First National Bank by signing a nine-month, 8% note.

Nov.

1, 2017

Borrows $60,000 from Interprovincial Bank by signing a three-month, 6% note.

Dec.

31, 2017

Prepares adjusting entries.

Feb.

1, 2018

Pays principal and interest to Interprovincial Bank.

Apr.

1, 2018

Pays principal and interest to First National Bank.

Instructions Prepare journal entries for each of the transactions.

b) Record various liabilities.

(LO 1, 3) AP

Peter's Mini Putt was opened on March 1 by Peter Palazzi. The following selected transactions occurred during March:

Mar. 1

Purchased golf balls and other supplies for $350 from Stevenson Supplies payable in 30 days.

5

Received a booking for a birthday party to be held the following week. The customer paid the mini golf fees of $200 in advance.

12

Provided the golf services for the birthday party.

15

Wages were paid to hourly workers. A total of $5,000 was paid out, with withholdings as follows: CPP $230, EI $94, and income tax $1,400.

30

Wrote a cheque to Stevenson Supplies for the $350 owing to settle the balance due.

Instructions Journalize the transactions.

c) Record note payable, interest paid monthly.

(LO 1) AP

On June 1, 2017, Novack Company purchases equipment on account from Moleski Manufacturers for $50,000. Novack is unable to pay its account on July 1, 2017, so Moleski agrees to accept a three-month, 7% note payable from Novack. Interest is payable the first of each month, starting August 1, 2017. Moleski has an August 31 fiscal year end and adjusts its accounts on an annual basis.

Instructions Record all transactions related to the note for Novack Company.

d) Record note payable and note receivable; interest paid at maturity.

(LO 1) AP

On March 1, 2017, Tundra Trees purchased equipment from Edworthy Equipment Dealership in exchange for a seven-month, 8%, $30,000 note payable. Interest is due at maturity. Tundra Trees has a July 31 fiscal year end. Edworthy has a May 31 fiscal year end. Both companies adjust their accounts annually. Tundra honours the note at maturity. Instructions (a)

For Tundra Trees, record all transactions related to the note.

(b)

For Edworthy Equipment, record all transactions related to the note. Assume the cost of the equipment to Edworthy was $18,000.

e) Record sales taxes.

(LO 1) AP

In providing accounting services to small businesses, you encounter the following independent situations:

• 1.Sainsbury rang up $13,200 of sales, plus HST of 13%, on its cash register on April 10.
• 2.Montgomery rang up $30,000 of sales, before sales taxes, on its cash register on April 21. The company charges 5% GST and no PST.
• 3.Winslow charges 5% GST and 7% PST on all sales. On April 27, the company collected $25,100 sales in cash plus sales taxes.

Instructions Record the sales transactions and related taxes for each client.

f) Record sales taxes.

(LO 1) AP

Scoggin rings up sales plus sales taxes on its cash register. On April 10, the register total for sales is $80,000. Instructions Journalize the transactions assuming the sales were made in

(a)

Quebec,

(b)

Nova Scotia, and

(c)

Alberta.