Assume that credit sales "to be received in 90 days" are
received in exactly 90 days...
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Assume that credit sales "to be received in 90 days" arereceived in exactly 90 days and that EFT wage payments are made inexactly 7 days. Expected to pay income tax of 35%? And its journalentries CR and DR
01-January-2016
Open business bank account with transfer of personal funds
$210,000
02-January-2016
EFT for rental of office space. Immediate occupancy. 60 monthsat $3500 per month.
$210,000
11-January-2016
Office equipment purchased for cash to get discount from theretail price of $56,000.
$50,000
11-January-2016
The office equipment will be replaced in 5 years at an expectedcost of $67,000.
$67,000
13-January-2016
Bank loan approved and credited to account. Payable in 2021
$310,000
28-June-2016
Credit sales. EFT payment to be received in 90 days.
$65,500
04-July-2016
Employee timesheets submitted for work performed. Payment (EFT)to be made in 7 days.
$5,200
29-July-2016
Cash sales.
$33,500
12-December-2016
Credit sales. EFT payment to be received in 90 days.
$42,500
28-December-2016
Employee timesheets submitted for work performed. Payment (EFT)to be made in 7 days.
$5,720
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