Kindly solve the following transactions with appropriate tittle and shows step by step explanations

1- Journal Entries

2-general ledger

3- Trial balance

Use account names you are familiar with in your program of study. NOTE: Use only the HST Payable account and HST paid on expenses account.

Ignore decimal places. Round to the nearest dollar. Use all Excel functions where reasonable.

Record all prepaid expenses to prepaid accounts.

You must provide a short description for each journal entry. Ignore HST unless otherwise explicitly stated

During the first month of operations, the Banco Extrusion Inc, located in Ontario Canada, which specializes in auto component manufacturing completed the following transactions.
Date
1	George Leblanc started the business by making a deposit into company bank account for $35,000, in exchange for 3,500 shares of $10 par value common stock.
1	Banco acquired a small machinist shop for $25,000 cash which represented- Computer - $5,800, Furniture, - $6,500 and Store equipment $12,700.
2	Received bank loan for $100,000, 6% annual interest. Payments are due on the last day of each month in the amount of $4,000.
2	Paid rent for the 3-month quarter January to March in the amount of $3,000 per month.
2	Paid the premium on a 1-year insurance policy, $5,000.
3	Purchased $800 in office supplies
5	Purchased inventory on account for $25,000 + 13% HST. Terms 2/10, n30.
13	Hired two full-time staff members, Lan and Liz, both who earn $36,000 a year and are paid bi-weekly beginning Jan 24.. Assume basic payroll deductions for Ontario. They work five days a week (Mon-Fri).
17	Record cash sales for the week in the amount of $10,000 + 13% HST. Cost of Goods Sold amounted to $5,500.
17	Purchased extrusion machine and equipment from Patel Inc. for $6,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for 12 months. The first payment is due Feb 1. Note: Use accounts payable for the balance due. Ignore HST and interest.
17	Record sales on account for the week in the amount of $12,000 + HST. Cost of goods sold was $8,000.
24	Paid both Lan and Liz their bi-weekly pay. Calculate deductions for CPP, EI and Ontario tax. Record employee portion only.
24	Record cash sales for the week in the amount of $15,000 + 13% HST. Cost of Goods Sold amounted to $10,000.
28	Paid accounts payable in full from January 5.
30	Record collection on outstanding accounts receivable for January in the amount of $20,000 + HST.
30	Purchased inventory on account in the amount of $6,000 + HST.
30	Paid loan payment of $4,000 plus interest of $500.

Answer rating: 100% (QA)

Journal Entries George Leblanc started the business by making a deposit into company bank account for 35000 in exchange for 3500 shares of 10 par value common stock Debit Cash 35000 Credit Common Stoc... View the full answer