PREPARE JOURNAL ENTRIES FOR THESE TRANSACTIONS.

7). The coffee machine in the above question has a useful life of 5 years.

Assuming the machine has no salvage value, and we use a Straight Line Method to calculate depreciation expense. Show the depreciation expense and contra entries for next 5 years assuming Depreciation Expense is recognised on December 31st of each year.

8) A company takes a $10,000 loan for 1 year, on November 1st 2023.

On November 31st the interest due on the loan is $300, and is paid on November 31st. Another payment becomes due on December 31st of $300 and is paid on Dec 31st. Make journal entries for Nov 31st and Dec 31st.

9) With regards to the above question, Interest due is recognised on Nov 31st and Dec 31st, BUT payments are made on June 30th of 2024.

So prepare journal entries for Nov 31st 2023, Dec 31st 2023 and June 30th 2024.

10) A stationery supplier sells $1,000 worth of ink toner to Schellhammer. Schelhammer promises to pay the bill in 30 days. Record the transaction from The Stationery Suppliers point of view. In 30 days Schelhhamer settles its bill.

11) Record the transaction from Schellhammers point of view at the time of purchase and at the time of payment of the bill.

12) In 45 days Schelhammer uses up one toner entirely. The cost of one toner is $200. Record a relevant journal transaction.

13) XYZ Car cleaning company receives an electricity bill for $300 on May 4th 2023. The company recorded the bill on May 4th but paid it in cash on May 30th, 2023. Record entries for May 4th and May 30th

14) Stooges Ice Cream companys ice cream machine breaks down on June 1st. A repair man comes and repairs right away and leaves a bill of $800. Stooges settles the bill on June 5th.

Show relevant entries for both June 1st and and June 5th.

15). A company sells a service to a client. The income earned is $100. There is a sales tax of 10% on this transaction. The customer pays the fee and the sales tax in cash, kindly record the transactions.