Question
Please help me in preparing the journal transactions as they occurred. Assume the company uses the perpetual inventory system. Date Details 1st September Borrowed $70,000
Please help me in preparing the journal transactions as they occurred. Assume the company uses the perpetual inventory system.
Date | Details |
1st September | Borrowed $70,000 from the south Bank on a short-term loan. The money is to be used to purchase computer equipment . The principle, plus 8% annual interest, will be paid in 4 months. |
1st September | Purchased 20 items of Skr at $20 each.All the stocks ordered were received and paid 20% of the purchase price together with the freight of $185 incl. GST. |
1stSeptember | Paid $5,500 incl. GST for a three-month product liability insurance policy to CoverWallet. |
1st September | Received $16,280 incl. GST cash in advance from clients for a 6-month subscription to the company featured magazine. |
1st September | Received $13,200 incl. GST in advance from Tom for repair of cars. |
2nd September | Spent $748 incl. GST on miscellaneous office supplies and paid for these from your bank account. |
2nd September | You spent $41,800 incl. GST on machinery and paid for it by using bank account. The machinery will have a useful life of 5 years, during which the company is planning to produce 16,500 units of new toys. The residual value of the machinery is $5,000. Actual number of units of toys that will be produced in 2019 will be 1,200 units. |
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