The following selected transactions for Sadie's Welding Supplies, an Alberta company, occurred in 2022 and 2021....
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The following selected transactions for Sadie's Welding Supplies, an Alberta company, occurred in 2022 and 2021. The company's year-end is December 31 and uses a perpetual inventory system. 2021 Oct. 14 Nov. 22 2022 1 18 3 Dec. 31 31 31 Purchased an office building for $265,000 plus 5% GST by issuing a 6%, 10 year bond for the building and paid the GST in cash. Sold inventory costing $14,500 to a customer for $42,000 plus GST, 2/10, n/30. Received payment for the October 22nd sale. Purchased inventory costing $23,000 plus GST, 2/15, n/30. Paid for the November 18th purchase. Accrued interest on the bond. Accrued warranty expense on $1,250,000 in sales for the year at the rate of 3.5% of sales. Accrued $74,000 in estimated income tax expense. Paid the GST owing for the last quarter ($15,625 collected from customers and $8,720 paid on purchases). Jan. 31 Apr. 14 Paid the first six month interest installment on the 10 year bond. Jun. 2 Paid $4,500 in repair costs for defective products sold. under warranty. Required: Record the transactions in the general journal. Use days to calculate any interest accruals and payments. The following selected transactions for Sadie's Welding Supplies, an Alberta company, occurred in 2022 and 2021. The company's year-end is December 31 and uses a perpetual inventory system. 2021 Oct. 14 Nov. 22 2022 1 18 3 Dec. 31 31 31 Purchased an office building for $265,000 plus 5% GST by issuing a 6%, 10 year bond for the building and paid the GST in cash. Sold inventory costing $14,500 to a customer for $42,000 plus GST, 2/10, n/30. Received payment for the October 22nd sale. Purchased inventory costing $23,000 plus GST, 2/15, n/30. Paid for the November 18th purchase. Accrued interest on the bond. Accrued warranty expense on $1,250,000 in sales for the year at the rate of 3.5% of sales. Accrued $74,000 in estimated income tax expense. Paid the GST owing for the last quarter ($15,625 collected from customers and $8,720 paid on purchases). Jan. 31 Apr. 14 Paid the first six month interest installment on the 10 year bond. Jun. 2 Paid $4,500 in repair costs for defective products sold. under warranty. Required: Record the transactions in the general journal. Use days to calculate any interest accruals and payments.
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
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