Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

02-January-2016

EFT for rental of office space. Immediate occupancy. 60 months at $3500 per month.

$210,000

11-January-2016

Office equipment purchased for cash to get discount from the retail price of $56,000.

$50,000

11-January-2016

The office equipment will be replaced in 5 years at an expected cost of $67,000.

$67,000

13-January-2016

Bank loan approved and credited to account. Payable in 2021

$310,000

28-June-2016

Credit sales. EFT payment to be received in 90 days.

$65,500

04-July-2016

Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

$5,200

29-July-2016

Cash sales.

$33,500

12-December-2016

Credit sales. EFT payment to be received in 90 days.

$42,500

28-December-2016

Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

$5,720

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Markets Products And Marketing

Authors: David Parmerlee

1st Edition

0658001337, 978-0658001338

More Books

Students also viewed these Accounting questions