Starlink Company has following balances from previous month-March: Cash: $900.000 debit balance, Bank: $800.000 debit balance, Goods:

Fantastic news! We've Found the answer you've been seeking!

Question:

Starlink Company has following balances from previous month-March:

Cash: $900.000 debit balance, Bank: $800.000 debit balance, Goods: $400.000 debit balance

A) Prepare General Journal Entries and post to General Ledger

Starlink Company's April transactions are as follows.

1. Apr 2- Starlink Company purchases an office flat in Maslak for $300.000 cash.

2. Apr 3- Starlink Company borrows $100.000 from a bank for 12 months, using the office flat as collateral

3. Apr 8- Starlink Company purchased a machinery for $26,000 via bank credit for 24 months. The machinery is estimated to have a 10-year life with a $2,000 salvage value. What journal entry would Starlink Company make on April 30, 2022, if it uses the straight-line method of depreciation and adjusts its accounts monthly?

4. Apr 11- Starlink Company sells goods on account to Acme Company for $200.000 terms 2/10, n/30.

5. Apr 13- Acme Company returns goods worth $10.000 to Starlink Company.

6. Apr 16- Starlink Company purchases a new marketing vehicle for $60.000 cash, and spends an additional $2.000 for registration and insurance:

7. Apr 18- Starlink Company receives payment from Acme Company for $100.000 in cash.

8. Apr 21- Starlink Company's accounting and finance manager assumes that 10% of its accounts receivable are uncollectible. Prepare the entry to adjust Allowance for Doubtful Accounts (HINT: You need to find out the balance of Account Receivable)

9. Apr 29- Starlink Company's employees earned wages of $100.000 during April. Withholdings related to these wages were $20.000 payroll tax. Prepare the April 30th's journal entries for salaries and wages expense, salaries, and wages payable, assuming that all April wages will be paid in May.

10. Apr 30- Do not forget the depreciation entry.

B) Starlink Company purchases a delivery truck for $15,000 cash, plus sales taxes of $900 and delivery costs of $500. The buyer also pays $200 for painting and lettering, $600 for an annual insurance policy, and $80 for a motor vehicle license. Determine the amount to be reported as the cost of the delivery truck.