Question
2) The following selected transactions for Sadies Welding Supplies, an Alberta company, occurred in 2016 and 2017. The companys year-end id December 31 and used
2) The following selected transactions for Sadies Welding Supplies, an Alberta company, occurred in 2016 and 2017. The companys year-end id December 31 and used a perpetual inventory system.
2016
Oct 14 Purchased an office building for $265,000 plus 5% GST by issuing a 6% 10 year note.
22 Sold inventory costing $14,500 to a customer on account for $42,000 plus GST.
Nov 1 Received payment for the October 22nd sale.
18 Purchased inventory costing $23,000 plus GST on account.
3 Paid for the November 18th purchase.
Dec 31 Accrued interest on the note.
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.
2017
Jan 31 Paid the GST owing for the last quarter ($15,625 collected from customers and $8,720 paid on purchases).
June 2 Paid $4,500 in repair costs for defective products sold under warranty.
Required: Record the transactions in the general journal. (20%)
PS: Please do not provide answers on hand-written format on Chegg. Word or Excel is ok. Thank You
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