Reference no: EM132587652

Question 1: Journalise the following transactions:

May 1 2020         Took a loan for 50,000 by signing a 10% 6 month note.

May 30 2020      Recorded cash sales of 35,000. All sales are subjected to VAT of 12.5%.

June 15 2020       Paid the Government the VAT collected

August 1 2020     Purchased a vehicle for $100,000 by signing a 5% 1 year note.

Nov. 1 2020        Paid off the loan taken on May 1 2020.

Dec 1 2020        Customer paid $5,000 in advance for a job.

Dec. 31 2020      Estimated warranty expense at 3% of the year's sales of $360,000

Dec. 31 2020      Accrued Interest for August Note

Dec. 31 2020       Earned 4,000 of the amount paid by the customer on Dec. 01 2020.

August 1 2021       Paid off Note for the purchase of vehicle