Betty Cardinal runs Cardinals Book Shop in a downtown location. As her newly hired accountant, your task
Question:
a. Journalize the transactions for the month of October.
b. Record to subsidiary ledgers and post to the general ledger as appropriate.
c. Total, rule, and cross-foot the journals. d. Prepare a schedule of accounts receivable and a schedule of accounts payable as of October 31, 2013. The following is the partial chart of accounts for Cardinal€™s Book Shop:
Transcribed Image Text:
Assets 110 Cash 120 Accounts Receivable 135 Prepaid Rent 138 Prepaid GST/HST 180 Delivery Truck Revenue 410 Book Sales 412 Sales Returns and Allowance 414 Sales Discounts Cost of Goods 510 Book Purchases 512 Purchases Returns and Allowances 514 Purchases Discounts Liabilities 210 Accounts Payable 218 GST/HST Payable Owner's Equity 310 B. Cardinal, Capital Expenses 615 Cleaning Expense 650 Salaries Expense 2013 Oct. Betty Cardinal invested $20,000 in the bookstore Paid three months' rent in advance, cheque No. 121, $2,700, plus GST. 1 3 Purchased merchandise from Milligan Book Company on account, $4,270, plus GST. Invoice No. 410, dated October 2, terms 2/10, n/30. 3 Sold merchandise to First City Library on account, $2,465, 7 Sold merchandise to District College on account, $3,160, 8 Purchased merchandise from Milligan Book Co. on plus GST. Invoice No. 781, terms 2/10, n/30 plus GST. Invoice No. 782, terms 2/10, n/30. account, $2,940, plus GST. Invoice No. 415, dated October 8, terms 2/10, n/30 Sold merchandise to First City Library on account, $1,856, plus GST. Invoice No. 783, terms 2/10, n/30. Paid cleaning service $280, plus GST, cheque No. 122. 8 8 District College returned merchandise that cost $312 (before GST) to Cardinal's Book Shop. Cardinal issued credit memorandum No. 1 to District College for $312 plus GST. Purchased merchandise from Winnipeg Book Supply on account, $1,852, plus GST Invoice No. 311, dated October 8, terms 1/15, n/60. Paid Milligan Book Co. invoice No. 410, dated October 2, cheque No. 123 11 11 11 Oct. 14 Sold $2,420, plus GST, worth of book merchandise for cas Paid salaries, $920, cheque No. 124. Returned merchandise to Winnipeg Book Supply in the amount of $362 plus GST. Cardinal's Book Shop issued debit memorandum No. 18 to Winnipeg Book Supply 15 15 Sold merchandise for cash, $1,047, plus GST. 15 Received payment from District College, invoice No. 782 (less returned merchandise), less discount. First City Library paid invoice No. 781 Sold book merchandise to Rural Bookmobile Co. on account, $2,484, plus GST Invoice No. 784, terms 2/10 n/30. 18 18 21 Purchased delivery truck on account from Suburban Auto Sales Co., $18,600, plus GST. Invoice No. 111, dated October 19 (no discount) Sold merchandise to First City Library on account, $2,694, plus GST. Invoice No. 785, terms 2/10, n/30. Paid Winnipeg Book Supply balance owed, cheque No. 125 Sold book merchandise on account to Rural Bookmobile Co., $2,412, plus GST. Invoice No. 786, terms 2/10, n/30. Purchased used book merchandise for cash, $3,200, plus GST, cheque No. 126. 22 22 25 25 Purchased book merchandise from Smithsonian Book Co. on account, $5,820, plus GST. Invoice No. 211, dated October 25, terms 2/10, n/30 Sold merchandise for cash, $940, plus GST. First City Library paid invoice No. 785, dated October 22. Rural Bookmobile Co. paid invoice No. 786, dated October 25. Betty invested an additional $12,000 in the business. Purchased merchandise from Milligan Book Co., $3,120 plus GST. Invoice No. 436, dated October 26, terms 2/10, n/30 Paid Milligan Book Co. invoice No. 436, cheque No. 127 Sold merchandise to Flower & Company on account, $3,126, plus GST. Invoice No. 787, terms 2/10, n/30 28 28 29 29 30 30 31 31
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Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
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