Please create jouranal entries 1(a) Purchased children laptop toys from Esorbma Limited, $95,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI’s warehouse on 4 March. 1(c) Sold 22,500 Treasury shares at $2 each.
Please create jouranal entries
1(a)
Purchased children laptop toys from Esorbma Limited, $95,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI’s warehouse on 4 March.
1(c)
Sold 22,500 Treasury shares at $2 each.
1(d)
Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for
1(e)
Sold remote control helicopters valued at $297,000 to TnecNiv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $600. The goods were shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March.
2
A 10% share dividend was declared when the market value per share was $2.1.
3
Cash is received from TnecNiv Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March.
4
Sold kids ride on cars to Vinga Limited, $140,000, terms n/30, FOB shipping point, 2% trade discount. The appropriate party paid freight charges of $400. The goods were shipped on 4 March and arrived at the warehouse of Vinga Limited on 6 March.
5
The management determined that the amount due from a customer, MYTOM Limited, $50,000 is uncollectible as the company has closed down.
6
Purchased supplies of $4,200 on account from Jimmy Printing and Stationery Limited.
7(a)
Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.
7(b)
Received credit memorandum of $1,700 from Esorbma Limited for goods purchased in March.
8
Granted Vinga Limited an allowance of $1,000 (original price) due to discrepancy in the color of the ride on cars.
9(a)
Sold flying disc and toy swings to Action Limited, list price of $120,000 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid
3
freight-charges of $800. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March.
Mar.
9(b)
Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of $230,000 on account for the purchase on 27 February. Purchases terms with Esorbma Limited in February was 2/10, n/30, FOB shipping point.
10
Paid $162,000 for salary up to 9th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. The employees receive a total salary of $40,500 for a five-day work week.
12
Received payments from Vinga Limited, for the March sales.
13
Acquired $150,000 toy musical instruments by signing a 90-day, 5% notes payable.
16
Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $200,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 45-day notes from the customer to settle the outstanding balance.
17
Share dividends were distributed. Shareholders on the register of the company on 6 March 2021 are entitled to receive the dividend shares.
21
Paid all dividends declared previously.
25
Received from Tom Limited, $180,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2021 to 31 March 2022.
27
Received inflatable castle of $40,000 consignment goods returned from Consignee Trading Limited. The goods are delivered to Consignee Trading Limited for consignment purpose in February 2021.
28
Purchased $23,000 play mats from Millan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2021.
29
A cash dividend was declared for
30
Received a check of $16,000 from the liquidator of YOT Limited. YOT Limited was closed down in December 2020 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of YOT Limited, as of then.
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