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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1EA: On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of...

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