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Analyze the transactions detailed in the screenshot and create appropriate accounting entries recreating the current-year financial records; please provide an explanation for your decision on
Analyze the transactions detailed in the screenshot and create appropriate accounting entries recreating the current-year financial records; please provide an explanation for your decision on each transaction.
Appendix C - 2021 Transactions 1. On January 15, 2021, The Green Scene, a long-time customer, purchased $25,000 worth of products to be shipped to its store on June 2, 2021. The order was paid in full at the time of booking and the cost of goods sold is 40% of the gross revenue. 2. On January 30, 2021, Vera booked a vacation to Mexico for herself and her sister and paid $10,000 with a company cheque with the explanation "owner's drawing". 3. On March 15, 2021, Vera, on behalf of the company, signed a letter of guarantor with RBC on a loan for her sister to construct and open a tea house on Vera's Magic Garden's property. The tea house will operate as a separate corporation. 4. On March 30, 2021, Herbal Forest purchased $50,000 worth of products to be shipped to its stores beginning May 01, 2021. Herbal Forest paid for the inventory and requested that Vera's hold the goods on their behalf due to lack of space in their warehouse during renovations. Herbal Forest sent Sophia's a copy of the document that covers the held goods under Herbal Forest's insurance policy. The cost of goods sold on this order was $27,000. 5. On April 01, 2021, Vera invested $25,000 of her personal funds in shares of Hazel's Magic Tea House LtdStep by Step Solution
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