Please help me in preparing the journal transactions as they occurred. Assume the company uses the p
Please help me in preparing the journal transactions as they occurred. Assume the company uses the perpetual inventory system.
Date
Details
1st September Borrowed $70,000 from the south Bank on a short-term loan. The
money is to be used to purchase computer equipment . The principle, plus 8% annual interest, will be paid in 4 months.
1st September
Purchased 20 items of Skr at $20 each.All the stocks ordered were received and paid 20% of the purchase price together with the freight of $185 incl. GST.
1stSeptember Paid $5,500 incl. GST for a three-month product liability insurance
policy to CoverWallet.
1st September Received $16,280 incl. GST cash in advance from clients for a 6-month
subscription to the company featured magazine.
1st September Received $13,200 incl. GST in advance from Tom for repair of
cars.
2nd September
Spent $748 incl. GST on miscellaneous office supplies and paid for these from your bank account.
2nd September
You spent $41,800 incl. GST on machinery and paid for it by using bank account. The machinery will have a useful life of 5 years, during which the company is planning to produce 16,500 units of new toys. The residual value of the machinery is $5,000. Actual number of units of toys that will be produced in 2019 will be 1,200 units.

