. Maritime Hardware Company's year end is December 31, and they use a perpetual inventory system. The following selected transactions were carried out during Year 3: • October 14-Purchased an office building for $265,000 plus 5% GST by issuing a 6%, 10-year bond for the building and paid the GST in cash. The bond interest will be paid every 6 months. 6% is the market rate for this type of bond. • October 22-Sold inventory costing $14,500 to a customer for $ 42,000 plus GST (5%) and PST (7%), n/30 (no sales discount offered). November 1-Received full payment for the October 22 sale. • November 18-Purchased inventory costing $23,000 plus GST (5 %), n/30. December 3-Paid in full for the November 18 purchase. • December 31-Accrued interest on the bond. Count exact days. Don't count the first day October 14. Do count the last day December 31. December 31-Accrued warranty expense on $1,250,000 of sales for the year at the rate of 3.5% of sales.. December 31-Accrued $74,000 in estimated income tax expense. Additional transactions were carried out during Year 4: January 31-Paid the GST owing for the last quarter, which included $15, 625 collected from customers and $8,720 paid on purchases. • April 14-Paid the first 6-month interest installment on the 10-year bond. Count exact days. Remember to exclude the first day and count the last day. This was not a leap year. May 7-Paid $4,500 in repair costs for defective products sold under warranty. Required Record the transactions in the general journal. Use the exact number of days to calculate any interest accruals and payments. Remember the first day is excluded and the last day is counted. .
. Maritime Hardware Company's year end is December 31, and they use a perpetual inventory system. The following selected transactions were carried out during Year 3: • October 14-Purchased an office building for $265,000 plus 5% GST by issuing a 6%, 10-year bond for the building and paid the GST in cash. The bond interest will be paid every 6 months. 6% is the market rate for this type of bond. • October 22-Sold inventory costing $14,500 to a customer for $ 42,000 plus GST (5%) and PST (7%), n/30 (no sales discount offered). November 1-Received full payment for the October 22 sale. • November 18-Purchased inventory costing $23,000 plus GST (5 %), n/30. December 3-Paid in full for the November 18 purchase. • December 31-Accrued interest on the bond. Count exact days. Don't count the first day October 14. Do count the last day December 31. December 31-Accrued warranty expense on $1,250,000 of sales for the year at the rate of 3.5% of sales.. December 31-Accrued $74,000 in estimated income tax expense. Additional transactions were carried out during Year 4: January 31-Paid the GST owing for the last quarter, which included $15, 625 collected from customers and $8,720 paid on purchases. • April 14-Paid the first 6-month interest installment on the 10-year bond. Count exact days. Remember to exclude the first day and count the last day. This was not a leap year. May 7-Paid $4,500 in repair costs for defective products sold under warranty. Required Record the transactions in the general journal. Use the exact number of days to calculate any interest accruals and payments. Remember the first day is excluded and the last day is counted. .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Maritime Hardware Company's year end is December 31, and they use a perpetual inventory system. The following
selected transactions were carried out during Year 3: October 14-Purchased an office building for $265,000 plus 5%
GST by issuing a 6%, 10-year bond for the building and paid the GST in cash. The bond interest will be paid every 6
months. 6% is the market rate for this type of bond. October 22-Sold inventory costing $14,500 to a customer for $
42,000 plus GST (5%) and PST (7%), n/30 (no sales discount offered). . November 1-Received full payment for the
October 22 sale.. November 18-Purchased inventory costing $23,000 plus GST (5 %), n/30. December 3-Paid in full
for the November 18 purchase.. December 31-Accrued interest on the bond. Count exact days. Don't count the first
day October 14. Do count the last day December 31. December 31-Accrued warranty expense on $1,250,000 of
sales for the year at the rate of 3.5% of sales.. December 31-Accrued $74,000 in estimated income tax expense.
Additional transactions were carried out during Year 4: January 31-Paid the GST owing for the last quarter, which
included $15,625 collected from customers and $8,720 paid on purchases. • April 14-Paid the first 6-month interest
installment on the 10-year bond. Count exact days. Remember to exclude the first day and count the last day. This was
not a leap year. . May 7-Paid $4,500 in repair costs for defective products sold under warranty. Required Record the
transactions in the general journal. Use the exact number of days to calculate any interest accruals and payments.
Remember the first day is excluded and the last day is counted.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education