Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

full Accounting cycle ( adjustment journal entries, adjusted general ledger and adjusted trial balance ) During the first month of operations, the Banco Extrusion Inc,

full Accounting cycle(adjustment journal entries, adjusted general ledger and adjusted trial balance) During the first month of operations, the Banco Extrusion Inc, located in Ontario Canada, which specializes in auto component manufacturing completed the following transactions. Date January 20231 George Leblanc started the business by making a deposit into company bank account for $35,000, in exchange for 3,500 shares of $10 par value common stock. 1 Banco acquired a small machinist shop for $25,000 cash which represented- Computer - $5,800, Furniture, - $6,500 and Store equipment $12,700.2 Received bank loan for $100,000,6% annual interest. Payments are due on the last day of each month in the amount of $4,000.2 Paid rent for the 3-month quarter January to March in the amount of $3,000 per month. 2 Paid the premium on a 1-year insurance policy, $5,000.3 Purchased $800 in office supplies 5 Purchased inventory on account for $60,000+13% HST. Terms 2/10, n30.13 Hired two full-time staff members, Lan and Liz, both who earn $36,000 a year and are paid bi-weekly with the first pay cheque being issued on January 27. Use the online PODC to calculate net pay. Assume basic payroll deductions for Ontario. They work five days a week (Mon-Fri).17 Record cash sales for the week in the amount of $10,000+13% HST. Cost of Goods Sold amounted to $5,500.17 Purchased extrusion machine and equipment from Patel Inc. for $6,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for 12 months. The first payment is due Feb 1. Note: Use accounts payable for the balance due. Ignore HST and interest. 17 Record sales on account for the week in the amount of $12,000+ HST. Cost of goods sold was $8,000.27 Paid both Lan and Liz their bi-weekly pay. Calculate deductions for CPP, EI and Ontario tax. Record employee portion only. 24 Record cash sales for the week in the amount of $15,000+13% HST. Cost of Goods Sold amounted to $10,000.27 Record sales on account for the week in the amount of $15,000+ HST. Cost of goods sold was $8000.28 Paid accounts payable in full from January 5.30 Record collection on outstanding accounts receivable for January in the amount of $20,000+ HST.30 Purchased inventory on account in the amount of $6,000+ HST.30 Paid loan payment of $4,000 plus interest of $500. Accrue wages payable to Lan and Liz as of Jan 31.
The telephone bill for January was received on Feb 7th in the amount of $250+ HST.
Office supplies on hand were counted as $800 as of the end of the month.
The utility bill for Jan was received on Feb 3rd in the amount of $200(ignore HST).
The company received a $2000+ HST advertising bill on Feb 13th for work completed in Jan.
We estimate approximately 2.5% of accounts receivable are uncollectible. Use the Allowance for Doubtful accounts (AFDA) method.
The company wants to record depreciation on a monthly basis using straight-line depreciation. .
Computer -3-year useful life with no residual value
Furniture-5-year useful life with $3,500 residual value
Store equipment -4-year useful life with $1,500 residual value
ChatGPT
image text in transcribed

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

Step: 3

blur-text-image

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

Financial Accounting An International Perspective

Authors: Arne Kinserdal

2nd Edition

0273631543, 978-0273631545

More Books

Students also viewed these Accounting questions

Question

MAPREDUCE

Answered: 1 week ago

Question

What can PMT do to improve its safety practices and policies?

Answered: 1 week ago