NOTE: do not include GST (5%) or PST (6%) in any transaction other than the inventory purchase/salesentries, where applicable.November 15, 2016:Ajax Corp., located in Regina, SK, purchased $10,000 of inventory, with terms n/45. Later that day, thecompany borrowed $45,000, at 9% simple interest, for 82 days, from Smiling Jim's House of Loans. Sofar during November, employees earned a total of $8,500 in wages that have not been recorded - andwill be paid in the future. (ignore any/all payroll deductions for this item). RECORD TODAY'S ENTRIES.November 19, 2016:Ajax had cash sales totaling $14,000 of merchandise to a variety of customers ($12,000 to end-users,and $2,000 to other businesses that will resell the items. Ajax has a COGS equal to 45% of the salesvatue.) Ajax expects 10% of the end-user sales to be returned for warranty repairs. RECORD TODAY'SENTRIES, including the warranty estimate.December 31, 2016:Ajax received $13,000 from a customer in exchange for Ajax providing cleaning services for the next 4months. Ajax recorded accrued interest on the loan today. They also paid the outstanding balance tothe Federal Government for the GST owing. (note: the GST account(s) should be at a zero balance afterrecording this entry.) Finally, warranty repairs totaling $750 were completed; since Ajax subcontracts allrepair work, use the Cash account for the full amount of repairs. RECORD TODAY'S ENTRIES.

Step 1 Journal is the part of book keeping.

Answered: ted, since Ajax subcontracts all repair…

ted, since Ajax subcontracts all repair work, use the Cash account for the full amount of repairs. RECORD TODAY'S ENTRIES.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017. 2016 Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 10% annual interest along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9% interest-bearing note with a face value of $80,000. ___?___ Paid the amount due on the note to Locust at the maturity date. ___?___ Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $42,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2017 __?__ Paid the amount due on the note to Fargo Bank at the maturity date. 5.1 Prepare…
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