Question
Assume that credit sales to be received in 90 days are received in exactly 90 days and that EFT wage payments are made in exactly
Assume that credit sales "to be received in 90 days" are received in exactly 90 days and that EFT wage payments are made in exactly 7 days. Expected to pay income tax of 35%? And its journal entries CR and DR
01-January-2016 | Open business bank account with transfer of personal funds | $210,000 |
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02-January-2016 | EFT for rental of office space. Immediate occupancy. 60 months at $3500 per month. | $210,000 |
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11-January-2016 | Office equipment purchased for cash to get discount from the retail price of $56,000. | $50,000 |
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11-January-2016 | The office equipment will be replaced in 5 years at an expected cost of $67,000. | $67,000 |
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13-January-2016 | Bank loan approved and credited to account. Payable in 2021 | $310,000 |
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28-June-2016 | Credit sales. EFT payment to be received in 90 days. | $65,500 |
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04-July-2016 | Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days. | $5,200 |
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29-July-2016 | Cash sales. | $33,500 |
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12-December-2016 | Credit sales. EFT payment to be received in 90 days. | $42,500 |
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28-December-2016 | Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days. | $5,720 |
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