Question
I would like to ask how can I make the following transactions? Because I am not sure about my answers are correct or not. I
I would like to ask how can I make the following transactions? Because I am not sure about my answers are correct or not. I understand the questions is a bit long but I hope someone can answers. Thanks.
IDC is a merchandizing company that specializes in motor vehicles. The company was established on June 1st, 2017 by issuing shares to investors.Inventory of IDC is accounted by specific identification,perpetualinventory system.Straight-line depreciationis used for plant assets. Useful life for building, furniture and fittings and motor vehicle are 30, 15 and 10 years respectively.No residual value is expected. IDC records a full month's depreciation in the month of acquisition, and no depreciation in the month of disposal.
The following transactions took place in August 2018:
13Received payment fromSureWinfor the 15 luxury cars sold last month, selling price was $881,288 each, no discount offered.
Returned 1 family car purchased earlier this month toBercedez-Menzfor the scratches found on the doors and paid for the rest from the same batch.
16Paid the delivery charge of the sales on the 10thto Quick Trans, $162,000 and purchased supplies of $5,800 on account.
20GoGoGo, an overseas customer that provides limousine services, reported that one of the luxury family cars bought last month was ofwrong color.After negotiation, it was agreed that IDC would provide an allowance of $20,000.GoGoGo has not paid for the cars yet.
21Paid the accrued dividends for preference shares.
25Received bills for electricity, water and gas, totaled at $118,000 (use a separate payable account).Received payment for the 5 X-class Bercedez-Menz cars sold earlier this month.
28Accrued salaries and wages for the month are $720,600 and $650,400 respectively.
28The prepaid rent was for a showroom in Shanghai, covering 12 months starting from December 1stlast year.
31The notes payable in the trial balance as at July 31stis a one year 2% note.Interest and principal will be paid when the note gets due.
31Physical inventory shows that the supplies on hand were $9,200.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started