Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q4 (13 marks) Part A. (5 Marks): During the first quarter of 2021, Hi-Q Tire sold on credit, 2,000 truck tires at $85 each plus

image text in transcribed

Q4 (13 marks) Part A. (5 Marks): During the first quarter of 2021, Hi-Q Tire sold on credit, 2,000 truck tires at $85 each plus harmonized sales tax (HST) of 13%. The HST is paid to the federal government. Required: Prepare the following journal entries a) On March 31, to record the sale of truck tires in the first quarter. b) On April 30, to record payment of first quarter sales taxes to the government | Account Debit Credit a) b) Part B. (8 Marks): On January 1, 2021 Milan Corp. issued a five-year $1,000,000, 7% bond at $1,050,000. Interest is paid annually on December 31. The market rate of interest is 6%. Required a) Prepare the journal entry to record the issuance of the bond at January 1, 2021. (3 Marks) b) Using the effective interest rate method, prepare the journal entry to recognize the interest expense at December 31, 2021. (3 Marks) Account Debit Credit a) b)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ebook Principles Of Financial Accounting

Authors: John Wild, Ken Shaw, Barbara Chiappetta

2nd Edition

0077166183, 9780077166182

More Books

Students also viewed these Accounting questions