Question

The following selected transactions for Sadie's Welding Supplies, an Alberta company, occurred in 2016 and 2017. The company's year-end is December 31 and uses a perpetual inventory system. GST = 5% 2016
Oct	14	Purchased an office building for $265,000 by issuing a 6%, 10 note payable. (Do not apply GST)
	22	Sold inventory costing $14,500 to a customer for $42,000 plus GST, 2/10, n/30.
Nov.	1	Received payment for the October 22nd sale. (Do not apply discount to GST)
	18	Purchased inventory costing $23,000 plus GST, 2/15, n/30.
Dec.	3 31	Paid for the November 18th purchase. Do not apply GST to discount Accrued interest on the note. (Use 78 days)
	31	Accrued warranty expense on $1,250,000 in sales for the year at the rate of 3.5% of sales.
	31	Accrued $74,000 in estimated income tax expense.
2017
Jan.	31	Paid the GST owing for the last quarter ($15,625 collected from customers and $8,720 paid on purchases).
Apr.	14	Paid the first six month interest installment on the 10 year note. (Use 182 days)
Jun.	2	Paid $4,500 in repair costs for defective products sold under warranty. Record the transactions in the general journal.

Calculations:

Date	Account /Explanation	Debit	Credit   pg 2

Answer 1