Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following selected transactions occurred in 2021 for Northwest Movers. Then company ends it accounting year on December 31. Apr 1 2021 Performed services on
The following selected transactions occurred in 2021 for Northwest Movers. Then company ends it accounting year on December 31. Apr 1 2021 Performed services on account for Ellison Rentals, $12,000. July 31 Bought a delivery truck costing $48,000; issued a six-month, 8% note for that amount. Aug 1 Received a $12,000, 3 month, 9% note from Ellison in satisfaction of its past-due A/R. Aug 31 Recorded the month's sales of $105,000 ($40,000 for cash and the balance on credit). Sales amounts are subject to a 6% state sales tax. COGS totaled $58,000. Sept 20 Paid the August sales tax to the state. Nov 1 Collected the Ellison note at maturity Dec 31 Accrued warranty expense, which is estimated to be 3% of sales of $748,500. Dec 31 Accrued interest on the outstanding note payable. Jan 31 2022 Paid off the note from July 31, 2021. Required: Make the needed journal entries (2 points each)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started