Create an adjusted general ledger for the following transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Create an adjusted general ledger for the following transactions

Transcribed Image Text:During the first month of operations, the Banco Extrusion Inc, located in
Ontario Canada, which specializes in auto component manufacturing
completed the following transactions.
Date
1
1
2
2
235
13
17
17
17
24
24
George Leblanc started the business by making a deposit into company
bank account for $35,000, in exchange for 3,500 shares of $10 par
value common stock.
Banco acquired a small machinist shop for $25,000 cash which
represented- Computer - $5,800, Furniture, - $6,500 and Store
equipment $12,700.
Received bank loan for $100,000, 6% annual interest. Payments are due
on the last day of each month in the amount of $4,000.
Paid rent for the 3-month quarter January to March in the amount of
$3,000 per month.
Paid the premium on a 1-year insurance policy, $5,000.
Purchased $800 in office supplies
Purchased inventory on account for $25,000 + 13% HST. Terms 2/10,
n30.
Hired two full-time staff members, Lan and Liz, both who earn $36,000
a year and are paid bi-weekly beginning Jan 24.. Assume basic payroll
deductions for Ontario. They work five days a week (Mon-Fri).
Record cash sales for the week in the amount of $10,000+ 13% HST.
Cost of Goods Sold amounted to $5,500.
24
Purchased extrusion machine and equipment from Patel Inc. for $6,000.
Paid $1,500 down and the balance was placed on account. Payments
will be $375.00 per month for 12 months. The first payment is due Feb
1. Note: Use accounts payable for the balance due. Ignore HST and
interest.
27
28
30
30
30
Record sales on account for the week in the amount of $12,000 + HST.
Cost of goods sold was $8,000.
Paid both Lan and Liz their bi-weekly pay. Calculate deductions for CPP,
El and Ontario tax. Record employee portion only.
Record cash sales for the week in the amount of $15,000 + 13% HST.
Cost of Goods Sold amounted to $10,000.
Decond .
Record cash sales for the week in the amount of $15,000 + 13% HST.
Cost of Goods Sold amounted to $10,000.
Record sales on account for the week in the amount of $15,000 + HST.
Cost of goods sold was $8000.
Paid accounts payable in full from January 5.
Record collection on outstanding accounts receivable for January in the
amount of $20,000 + HST.
Purchased inventory on account in the amount of $6,000+ HST.
Paid loan payment of $4,000 plus interest of $500.

Transcribed Image Text:Adjustment transactions:
Accrue wages payable to Lan and Liz as of Jan 31.
The telephone bill for January was received on Feb 7th in the amount of
$250 + HST.
Office supplies on hand were counted as $800 as of the end of the month.
The utility bill for Jan was received on Feb 3rd in the amount of $200
(ignore HST).
The company received a $2000 + HST advertising bill on Feb 13th for work
completed in Jan.
We estimate approximately 2.5% of accounts receivable are uncollectible.
Use the Allowance for Doubtful accounts (AFDA) method.
The company wants to record depreciation on a monthly basis using
straight-line depreciation. .
• Computer - 3 year useful life with no residual value
●
Furniture-5 year useful life with $3,500 residual value
• Store equipment - 4 year useful life with $1,500 residual value
Hint: You must review the Journal Entries tab and the Trial Balance tab for
additional information for adjusting entries.
Also note, that you should accrue HST on expenses that are accrued.
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