Foxey Distributors had the following transactions for the month of April 2014: Apr 1 Sold $3,000 of

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Foxey Distributors had the following transactions for the month of April 2014:
Apr 1 Sold $3,000 of merchandise to James Moss, terms n/30. Inventory had a cost of $1,340. The sale was subject to 7 percent PST and 5 percent GST.
3 Purchased $28,500 of merchandise from MNO Suppliers Ltd., terms net 30, subject to 5 percent GST. The invoice was dated April 2.
6 Paid for the purchase of April 3 (MNO Suppliers Ltd.), cheque no. 12.
7 Paid $6,500 wages to employee, cheque no. 13.
9 Owner withdrew $15,000 for personal use, cheque no. 14.
11 Collected the amount owed by James Moss (April 1).
13 Purchased equipment from MB Machinery Ltd., $28,500 plus 5 percent GST, terms n/30. The invoice was dated April 12.
14 Issued a debit memo to MB Machinery Ltd. (April 13) for $1,500 plus 5 percent GST of equipment returned as defective.
15 Sold $4,000 of merchandise to St. Boniface School for cash. Inventory cost was $2,500. The sale was subject to 7 percent PST and 5 percent GST.
16 Paid the account owing to MB Machinery Ltd., cheque no. 15.
17 Purchased equipment from Dearing Equipment Inc., for $37,500 plus 5 percent GST, terms net 60. The invoice was dated April 17.
22 Paid a $9,000 note due to Commercial Bank, plus interest of $900, cheque no. 16.
24 Sold $2,200 of merchandise for cash; inventory cost was $1,500. The sale was subject to 7 percent PST and 5 percent GST.
25 Paid $1,500 to Canada Revenue Agency for income taxes owing from December 31, 2010, cheque no. 17.
26 Returned $8,500 plus 5 percent GST of the merchandise purchased from MNO Suppliers Ltd.
28 Purchased inventory for $6,000 plus 5 percent GST from Artois Ltd., promising to pay in 30 days. The invoice is dated April 28.
30 Recorded the adjusting journal entries for the month of April.
Required
1. For each date, indicate which journal would be used to record the transaction assuming Foxey Distributors uses a general journal, a sales journal, a cash receipts journal, a purchases journal, and a cash payments journal.
2. Record the appropriate transactions in the cash receipts journal and the cash payments journal, using the special journal formats shown in Exhibit 7-12 on page 422.
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Related Book For  book-img-for-question

Accounting Volume 1

ISBN: 978-0132690096

9th Canadian edition

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

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