Jeff Whiteheart Practice questions - Excel Liam Roy LR File Home Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Out Copy Calibri 11 ' ' = AutoSum Wrap Text General Paste BIU = = = Merge & Center - $% Format Painter Conditional Format as Cell Formatting Styles Insert Delete Format Table Clear Sort & Find & Filter Select Clipboard Font Alignment Number F Styles Cells Editing F26 A D F G H K L M N 0 P All Inc. is a manufacturer of custom furniture, which was incorporated on January 3, 2014. The following transactions happened during the year ended December 31, 2019. 2 4 1 On January 3rd, the owner invested $750,000 to start the business. S 6 7 2 3 8 9 4 10 11 12 13 14 5 b 15 16 7 17 18 19 20 21 22 On January 3rd, Ali signed a two-year lease contract to rent a building which will be used as the main manufacturing facility. The first and last month rent was paid in advance on Jan 3rd. Monthly rent is $5,000. On March 1, All purchased manufacturing equipment at a cost of $200,000. Ali paid $50,000 in cash and the rest will be paid next year. The equipment has a useful life of 8 years and $5,000 residual value. The company uses double declining balance method of depreciation. On April 1, Ali borrowed $350,000 from a bank. The loan is a 4-year with 4% interest rate. The Interest is payable on the first day of each month, beginning May 1st. On April 15, All purchased inventory of $150,000 from suppliers on account and is charged 13% harmonized sales tax. On May 1, All received an order to build custom furniture for a customer. The customer paid $20,000 in advance. The furniture was delivered at the end of December 2019. The cost of making the furniture was $8,000. The company uses a perpetual inventory system. Ignore HST for this sale. The following expenses were paid during the year. Salaries and wages expense Rent expense Interest expense 23 24 25 Required: Prepare journal entries to record the above transactions. For each entry, write the Initial entry and then, if necessary, write an adjusting entry at December 31, 2019. 110,000 55,000 9,333 Account Debit Credit Ready Q1 25 mins Accessibility: Investigate Q2 25 mins Q3 15 mins Q4 15 mins Q5 15 mins Q6 25 mins # ENG CMS 3:11 PM 2022-04-18 Share 8196