Paul Gee Limited buys and resells machines. Paul Geel is known to buy and sell in the City. During the year, the following took place. Record the journal entries for these transactions. Jan Bought a machine for resale for $93,000 plus 5% GST. The amount is payable in 30 days. The company uses a perpetual inventory system. 15 Jan 30 Jan 30 Feb 15 Sold the machine for $245,000 plus 5% GST cash including a five-year warranty. Based on past experience, the accountant determines that an amount of $24,000 will be paid out in warranty obligation. Paid the sales tax amount owing. Paid for the machine purchased on Jan 15. Mar Paul Geel must repair the machine under warranty. The company uses $200 in parts from its own 27 inventory.
Paul Gee Limited buys and resells machines. Paul Geel is known to buy and sell in the City. During the year, the following took place. Record the journal entries for these transactions. Jan Bought a machine for resale for $93,000 plus 5% GST. The amount is payable in 30 days. The company uses a perpetual inventory system. 15 Jan 30 Jan 30 Feb 15 Sold the machine for $245,000 plus 5% GST cash including a five-year warranty. Based on past experience, the accountant determines that an amount of $24,000 will be paid out in warranty obligation. Paid the sales tax amount owing. Paid for the machine purchased on Jan 15. Mar Paul Geel must repair the machine under warranty. The company uses $200 in parts from its own 27 inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:Paul Gee Limited buys and resells machines. Paul Geel is known to buy and sell in the City. During the year, the
following took place. Record the journal entries for these transactions.
Jan Bought a machine for resale for $93,000 plus 5% GST. The amount is payable in 30 days. The company
uses a perpetual inventory system.
15
Jan
30
Jan
30
Feb
15
Mar
27
Sold the machine for $245,000 plus 5% GST cash including a five-year warranty. Based on past
experience, the accountant determines that an amount of $24,000 will be paid out in warranty
obligation.
Paid the sales tax amount owing.
Paid for the machine purchased on Jan 15.
Paul Geel must repair the machine under warranty. The company uses $200 in parts from its own
inventory.
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