Campbell Electronics Ltd had the following transactions: 1. The NZA Bank issued

Question

Campbell Electronics Ltd had the following transactions: 1. The NZA Bank issued $180 000 of 3-month notes payable to Campbell Electronics Ltd orn 2. Campbell Electronics Ltd repaid the notes, including the interest, on 1 June 2016. 1 March 2016. The notes are interest-bearing at the rate of 10% per annum. 3. Campbell Electronics Ltd sells its electronic equipment with a 12-month warranty. On 3 June 2016, the company replaced goods under warranty at a cost of $1 000 using goods from its own inventory. Payroll for June 2016 totalled $20 000. The pay week ended on 30 June and was paid on 1 July. Payroll deductions during June were as follows: 4. $2 000 $3 500 $1 400 Medicare fund deductions.... Superannuation deductions Required: Using the information presented above, prepare the journal entries for Campbell Electronics Ltd (up to 30 June 2016). Narrations are not required.

Explanation / Answer

Date Account Debit credit 1 march 2016 cash 180000 Note payable 180000 1 june 2016 Note payable 180000 Interest expense [180000.10*3/12] 4500 cash 184500 3 june2016 Warranty payable 1000 cash 1000 30 june salary expense 20000 medicare fund deduction payable 2000 Pay as-you-gotax deduction withheld payable 3500 superannuation deductions payable 1400 salary payable 13100

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