Problem 11-1A

The following selected transactions of Truestar Communications, a Manitoba company,

occurred during 2016 and 2017. The company's year end is December 31.

2016

Jan. 3 Purchased a machine at a cost of $350,000 plus 5 percent GST, signing a

5 percent, 180-day note payable for that amount.

29 Recorded the month's sales of $1,570,000 (excludes PST and GST), 80 percent

on credit and 20 percent for cash. Sales amounts are subject to 8 percent PST

and 5 percent GST.

Feb. 5 Paid January's PST and GST to the appropriate authorities.

28 Borrowed $3,000,000 on a 3 percent note payable that calls for annual instalment

payments of $300,000 principal plus interest.

Jul. 3 Paid the six-month, 5 percent note at maturity.

Nov. 30 Purchased inventory for $150,000 plus GST, signing a six-month, 5 percent

note payable.

Dec. 31 Accrued warranty expense, which is estimated at 2 percent of annual sales of

$8,000,000.

31 Accrued interest on all outstanding notes payable. Make a separate interest

accrual entry for each note payable.

2017

Feb. 28 Paid the first instalment and interest for one year on the long-term note payable.

May 31 Paid off the 5 percent note plus interest at maturity.

Required Record the transactions in the company's general journal. Use days in any

interest accrual calculations, not months. Round all amounts to the nearest whole dollar.

Explanations are not required.

Accounting Book Horngren's.pdf - Adobe Acrobat Reader DC X File Edit View Window Help Home Tools Accounting Book H... x Sign In 674 / 756 123% T] Share Required Is it unethical for managers to commit a company to a high level of debt? Or is it just risky? Who could be hurt by a company's taking on too much debt? Discuss. Export PDF Adobe Export PDF PROBLEMS (GROUP A) MyAccountingLab Convert PDF Files to Word or Excel Online Problem 11-1A Select PDF File The following selected transactions of Truestar Communications, a Manitoba company, Journalizing liability-related occurred during 2016 and 2017. The company's year end is December 31. transactions Accounting...ngren's.pdf X 1 2 Convert to 2016 Microsoft Word (*.docx) v Jan. 3 Purchased a machine at a cost of $350,000 plus 5 percent GST, signing a 5 percent, 180-day note payable for that amount. Document Language: 29 Recorded the month's sales of $1,570,000 (excludes PST and GST), 80 percent English (U.S.) Change on credit and 20 percent for cash. Sales amounts are subject to 8 percent PST and 5 percent GST. Feb Paid January's PST and GST to the appropriate authorities. 28 Borrowed $3,000,000 on a 3 percent note payable that calls for annual instal- Convert 3 ment payments of $300,000 principal plus interest. Jul. Nov. 30 Paid the six-month, 5 percent note at maturity. Purchased inventory for $150,000 plus GST, signing a six-month, 5 percent Create PDF Dec. 31 note payable. Accrued warranty expense, which is estimated at 2 percent of annual sales of Edit PDF $8,000,000. 31 Accrued interest on all outstanding notes payable. Make a separate interest =Comment accrual entry for each note payable. 2017 Combine Files V Feb. 28 Paid the first instalment and interest for one year on the long-term note pay- May 31 able. Paid off the 5 percent note plus interest at maturity. Organize Pages _ Redact Required Record the transactions in the company's general journal. Use days in any interest accrual calculations, not months. Round all amounts to the nearest whole dollar. Protect Explanations are not required. Optimize PDF Problem 11-2A Austin Motors is located in Victoria, British Columbia, and is the only Austin dealer in Identifying contingent liabilities Convert and edit PDFs with Acrobat Pro DC Western Canada. The dealership repairs and restores Austin vintage cars. Hal Irwin, the general manager, is considering changing insurance companies because of a disagreement 2 Start Free Trial O W X s ENG 09:16 AM 01-03-2019