Question 11

ser Had cash sales of $12,000 plus 13% HST Nov 15 Paid HST to the government for Oct. 3 and Oct.8 sales.e Nov 30 Received customer payment for Oct.3 outstanding accounts receivable. 1376 HS in cash and $6,000 plus 13% HST on credit. QUESTION 11 (7 marks) On August 1, 2015 Buttercup Inc. purchased $150,000 of inventory and signed a one year 12% note payable with interest and principal paid at maturity of the note. Buttercup has a December 31 year-end. REQUIRED: (a) Prepare the journal entry for the August 1, 2015 transaction. (b) Prepare the journal entry for the December 31, 2015 accrual of interest expense. (c) Prepare the journal entry to record the August 1, 2016 payment of the principal and interest on the note. QUESTION 12 (4 marks) Kent Oil, a Oil's cost of mineral assets totaled approximately $18 million, representing 2.4 million barrels of oil a gas reserves in the ground. small Alberta oil company, holds huge reserves of oil and gas assets. At the end of 2016, Ke 1017 Kent Oil removed 0.8 million (i.e. 800,000) barrels of oil and sold all of these barrels during reserve at December 31, 2017 using the un