Q1 The Reading Warehouse distributes hardback books to retail stores and extends credit terms of 2/7, n/30 to all of its customers. During the month of June the following inventory transactions...

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Q1 The Reading Warehouse distributes hardback books to retail stores and extends credit terms of 2/7, n/30 to all of its customers. During the month of June the following inventory transactions occurred. June 2 Purchased 130 books on account for $6 each (including freight) from Reader's World Publishers, terms 1/7, n/30. Also made a cash payment to Classic Couriers of $60 for the freight on this date. 3 Sold 140 books on account to the Book Nook for $12 each. 6 10 books returned to Reader's World Publishers. Received $60 credit. 9 Paid Reader's World Publishers the amount owning. 15 Received payment in full from the Book Nook. 17 Sold 120 books on account to Read-A-Lot Bookstore for $12 each. 20 Purchased 120 books on account for $6 each from Read More Publishers, terms 2/7, n/30. 24 Received payment of account from Read-A-Lot Bookstore. 26 Paid Read More Publishers the amount owning. 28 Sold 110 books on account to Readers Bookstore for $12 each. 30 Granted Readers Bookstore $180 credit for 15 books returned costing $90. The books were returned to inventory. Journalise the transactions for the month of June for Reading Warehouse, using a perpetual inventory system. Assume the cost of each book sold was $6. (For multiple debit/credit entries, list accounts in order of magnitude. Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all answers to 0 decimal places.) Date Particulars Debit Credit 2 June      (To record the purchase.)             (To record the cost of freight.)      3 June      (To record the sale.)             (To record the cost of inventory.)      6 June   9 June          15 June   17 June       (To record the sale.)              (To record the cost of inventory.)      20 June   24 June       26 June     28 June      (To record the sale.)            (To record the cost of inventory.)     30 June       (To record the credit for returned inventory.)            (To record the inventory returned.)      Q2 Question 2 Chee Yong Chaw began his business on 1 July 2016. The business balances its books at month-end and uses special journals and the periodic inventory system. Transactions for July 2016 were as follows: July 1 Chee Yong Chaw invested $28,800 cash and $16,800 office equipment into the business. July 2 Purchased inventory from L Cao on account for $7,200 plus GST; terms 2/15, n/30. Paid July rental of $2,880 plus GST; by interbank transfer to Prime Properties Ltd. July 3 Purchased inventory from Difabio Ltd on account for $5,840 plus GST; terms n/30. July 6 Sold inventory to J Ellis on account for $1,600 plus GST; terms 2/15, n/30. July 7 Received July rental of $720 plus GST for space sublet to Perth Services. July 8 Purchased stationery supplies for $1,600 plus GST; cheque no. 124. July 10 Purchased inventory for cash $1,580 plus GST. July 13 Sold inventory to Giola Ltd on account for $3,600 plus GST; terms 2/10, n/30. July 14 Purchased inventory from O Hee on account for $4,800 plus GST; terms 2/10, n/30. July 15 Paid L Cao for 2 July purchase with an interbank transfer. July 19 Received $1,725 from J Ellis in payment of her account. Sold inventory to O Kaddish on account for $3,680 plus GST; terms 2/10, n/30. July 21 Received $3,881 from Giola Ltd in payment of its account. Sold inventory to Modra Ltd on account for $2,880 plus GST; terms 2/10, n/30. July 22 Paid O Hee for 14 July purchase; cheque no. 125. July 23 Purchased inventory from L Cao on account for $4,400 plus GST; terms 2/15, n/30. July 26 Sold inventory for cash, $2,320 plus GST. July 28 Returned defective inventory that cost $960 to L Cao. July 29 Sold merchandise to I Nizic on account for $6,560 plus GST; terms 2/10, n/30. July 30 Purchased merchandise from A Romeo on account for $1,440 plus GST; terms 1/10, n/30. Paid month's salary of office assistant, $2,560 by interbank transfer. A. Prepare journal entries for July 2016, using appropriate journals. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Cash receipts journal Debits Credits Date Account Post  ref. Cash at bank Disc. all'd GST collect Sales GST collect A/cs. rec'able Other a/cs. 2016 July 1 July 7 July 19 √ July 21 √ July 26 Cash payments journal Date Account Ch.  no. Post  ref. Other Acc/s payable Purchases GST rec'able Cash at bank Disc. rec'd GST receivable 2016 July 2 BPay July 8 124 July 10 — July 15 BPay √ July 22 125 √ July 30 Trf General journal Date 2016 Particulars Debit Credit July 1 (Equipment contributed by owner)  July 28 (Return of defective goods) Purchases journal Date Account Terms Post ref. Purchases GST Receivable Accounts Payable 2016 July 2 2/15, n/30 √ July 3 n/30 √ July 14 2/10, n/30 √ July 23 2/15, n/30 √ July 30 1/10, n/30 √ Sales journal Date Account Terms Post ref. Sales GST payable Accounts receivable 2016 July 6 2/15, n/30 √ July 13 2/10, n/30 √ July 19 2/10, n/30 √ July 21 2/10, n/30 √ July 29 2/10, n/30 √
Answered Same DayApr 10, 2021

Answer To: Q1 The Reading Warehouse distributes hardback books to retail stores and extends credit terms of...

Khushboo answered on Apr 10 2021
156 Votes
Q3
The trial balance of Westmeadow Weightlifting contains the following account balances at 30 June.
    Westmeadow Weightlift
ing
Trial balance
as at 30 June
    Account
    
    Debit
    
    Credit
    Inventory
    
    $187,230
    
    
    Walter Westmeadow, drawings
    
    114,120
    
    
    Sales
    
    
    
    $2,915,460
    Sales returns and allowances
    
    53,360
    
    
    Discount allowed
    
    9,440
    
    
    Cost of sales
    
    1,865,330
    
    
    Freight inwards
    
    33,530
    
    
    Discount received
    
    
    
    6,540
    Selling and distribution expenses
    
    473,540
    
    
    Administrative expenses
    
    284,761
    
    
    Other finance expenses
    
    54,220
    
    
Prepare the closing entries under the perpetual inventory system. (Enter debit entries first, followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
    Date
    Particulars
    Debit
    Credit
    June 30
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (Close debit temporary accounts)
    
    
    30
    
    
    
    
    
    
    
    
    
    
    
    
    (Close credit temporary accounts)
    
    
    30
    
    
    
    
    
    
    
    
    (Transfer profit to capital)
    
    
    30
    
    
    
    
    
    
    
    
    (Transfer drawings to capital...
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