Record the following transactions: Date Description Sept 1 You contributed $20,000 cash into your business. You also borrowed $15,000 from Bankwest. This bank loan is a 2-year secured business loan, with an interest rate of 6% per annum, and monthly repayments of $540. The first instalment is due on 25 September 2022 You purchased a computer at a cost of $1,980 incl. GST for cash. Computer has a useful life of two years. It is depreciated using a diminishing balance method at a rate of 25% and a residual value of $562.50 Sept 3 You purchased 30 car seats from Baby Essentials on credit. You promised to pay your liability in 30 days You purchased 15 prams from Kids Brands on credit. You promised to pay your liability in 45 days Sept 2 Sept 4 Sept 5 Sept 6 Sept 7 Sept 25 Sept 30 Sept 30 You returned one car seat to Baby Essentials, and you received credit You sold 15 car seats to Baby Gear for cash You sold 8 prams to Baby Gear for cash You paid the first instalment due on the bank loan You recorded the adjusting entry for interest expense on the bank loan You recorded the depreciation expense for the computer equipment Item name Car seat-Britax Safe & Sound Pram-Litetrax Purchase price (excl. GST) per unit $320 $430 Sale price (excl. GST) per unit $540 $850
Record the following transactions: Date Description Sept 1 You contributed $20,000 cash into your business. You also borrowed $15,000 from Bankwest. This bank loan is a 2-year secured business loan, with an interest rate of 6% per annum, and monthly repayments of $540. The first instalment is due on 25 September 2022 You purchased a computer at a cost of $1,980 incl. GST for cash. Computer has a useful life of two years. It is depreciated using a diminishing balance method at a rate of 25% and a residual value of $562.50 Sept 3 You purchased 30 car seats from Baby Essentials on credit. You promised to pay your liability in 30 days You purchased 15 prams from Kids Brands on credit. You promised to pay your liability in 45 days Sept 2 Sept 4 Sept 5 Sept 6 Sept 7 Sept 25 Sept 30 Sept 30 You returned one car seat to Baby Essentials, and you received credit You sold 15 car seats to Baby Gear for cash You sold 8 prams to Baby Gear for cash You paid the first instalment due on the bank loan You recorded the adjusting entry for interest expense on the bank loan You recorded the depreciation expense for the computer equipment Item name Car seat-Britax Safe & Sound Pram-Litetrax Purchase price (excl. GST) per unit $320 $430 Sale price (excl. GST) per unit $540 $850
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Record the following transactions:
Date Description
Sept 1
You contributed $20,000 cash into your business. You also borrowed $15,000 from
Bankwest. This bank loan is a 2-year secured business loan, with an interest rate of 6% per
annum, and monthly repayments of $540. The first instalment is due on 25 September
2022
You purchased a computer at a cost of $1,980 incl. GST for cash. Computer has a useful
life of two years. It is depreciated using a diminishing balance method at a rate of 25% and
a residual value of $562.50
You purchased 30 car seats from Baby Essentials on credit. You promised to pay your
liability in 30 days
Sept 4
You purchased 15 prams from Kids Brands on credit. You promised to pay your liability in
45 days
Sept 2
Sept 3
Sept 5
Sept 6
Sept 7
Sept 25
You returned one car seat to Baby Essentials, and you received credit
You sold 15 car seats to Baby Gear for cash
You sold 8 prams to Baby Gear for cash
You paid the first instalment due on the bank loan
Sept 30
You recorded the adjusting entry for interest expense on the bank loan
Sept 30 You recorded the depreciation expense for the computer equipment
Item name
Car seat-Britax Safe & Sound
Pram-Litetrax
Purchase price (excl. GST) per unit
$320
$430
Sale price (excl. GST) per unit
$540
$850
Expert Solution
Step 1
Journal Entry :— It is the process of Recording All financial and Non financial Transactions into a proper formate. Journal Entry is the First stage of Recording of Transaction.
A journal entry is a record of the business transactions in the accounting books of a business.
Golden Rules of Journal Entries :—
- Debit what comes in, Credit what goes out.
- Debit the receiver, Credit the giver.
- Debit all expenses Credit all income.
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