Homework Help is Here – Start Your Trial Now!
Business
Accounting
ted, since Ajax subcontracts all repair work, use the Cash account for the full amount of repairs. RECORD TODAY'S ENTRIES.

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
NOTE: do not include GST (5%) or PST (6%) in any transaction other than the inventory purchase/sales entries, where applicable. November 15, 2016: Ajax Corp., located in Regina, SK, purchased $10,000 of inventory, with terms n/45. Later that day, the company borrowed $45,000, at 9% simple interest, for 82 days, from Smiling Jim's House of Loans. So far during November, employees earned a total of $8,500 in wages that have not been recorded - and will 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 sales vatue.) Ajax expects 10% of the end-user sales to be returned for warranty repairs. RECORD TODAY'S ENTRIES, including the warranty estimate. December 31, 2016: Ajax received $13,000 from a customer in exchange for Ajax providing cleaning services for the next 4 months. Ajax recorded accrued interest on the loan today. They also paid the outstanding balance to the Federal Government for the GST owing. (note: the GST account(s) should be at a zero balance after recording this entry.) Finally, warranty repairs totaling $750 were completed; since Ajax subcontracts all repair work, use the Cash account for the full amount of repairs. RECORD TODAY'S ENTRIES.
Transcribed Image Text:NOTE: do not include GST (5%) or PST (6%) in any transaction other than the inventory purchase/sales entries, where applicable. November 15, 2016: Ajax Corp., located in Regina, SK, purchased $10,000 of inventory, with terms n/45. Later that day, the company borrowed $45,000, at 9% simple interest, for 82 days, from Smiling Jim's House of Loans. So far during November, employees earned a total of $8,500 in wages that have not been recorded - and will 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 sales vatue.) Ajax expects 10% of the end-user sales to be returned for warranty repairs. RECORD TODAY'S ENTRIES, including the warranty estimate. December 31, 2016: Ajax received $13,000 from a customer in exchange for Ajax providing cleaning services for the next 4 months. Ajax recorded accrued interest on the loan today. They also paid the outstanding balance to the Federal Government for the GST owing. (note: the GST account(s) should be at a zero balance after recording this entry.) Finally, warranty repairs totaling $750 were completed; since Ajax subcontracts all repair work, use the Cash account for the full amount of repairs. RECORD TODAY'S ENTRIES.
Expert Solution
steps

Step by step

Solved in 2 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Double entry bookkeeping system
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS