A new computer was purchased $3300 including GST. An old computer was traded-in for $220 including GST. The owner obtained an extension to the Bank Loan to pay the amount owing. How to write them in GJ? Please help me!

What do YOU think ?
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Originally Posted by Curlyben

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

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@Curlyben: I can't understand the last sentence. My teacher haven't teach me that one yet. If you know, why don't you teach me. THX

The extension to a bank loan will not appear in the general journal because it is not a transaction. An extension would be changing the length of time to repay the bank loan, which could change the amount of the payments. So you would only record the payments made or due, not the terms of the loan in the general journal.

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Originally Posted by pready

The extension to a bank loan will not appear in the general journal because it is not a transaction. An extension would be changing the length of time to repay the bank loan, which could change the amount of the payments. So you would only record the payments made or due, not the terms of the loan in the general journal.

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Could you please check this answer for me?
Office equipment Dr 3000
GST Dr 300
Bank Cr 3300

Bank Dr 220
Office equip Cr 200
GST Cr 20
I don't need to make the last sentence into GJ, do I.

I think what you might be missing is debit bank 3080 and credit loans 3080

I am unsure because I'm unsure what you mean by extension of a Bank Loan, if you mean a loan was increased, then you need this extra journal, if you mean that there is a bank overdraft arrangement which allowed the bank balance to have a greater credit balance then you don't

As to the other journals they are okay.