Provide the following for the following challenge exercise:

a) Income Statement, Gross Margin – Standard, year-to-date

b) All Journal Entries

c) Customer Aged Detail, all customers, with terms at Mar 15

d) Vendor Aged Detail, all vendors, with terms at Mar 15

e) Pending Sales Orders Detail by Customer at Mar 28 

f) Pending Purchase Orders Detail by Vendor at Mar 25

Challenge Exercise 03 C3B-4, Chairs - British Columbia

(1) All sales to customers (except Retail and credit card sales) are with terms of 2/10, n30.

(2) All vendor invoices are purchased with terms 2/10, n30 unless otherwise informed.

(3) GST at 5% and PST at 7% is used on sales and purchases in this text and reflected in the solutions. (This rate, however, may have changed since publication date.) When on the job be sure to use the appropriate HST, GST and PST rates.

(4) PST on Retail Sales and Retail Purchases is 7%.

(5) GST and PST are to be added where applicable.

(6) Address information is not important.

(7) New customers will be given a credit limit, but no terms. Terms will be negotiated when future sales are made.

The following transactions took place on the dates indicated.

Mar 1 Issued cheque #812 for $600.00, plus GST, to Square Mall Management for rent for March.

Mar 2 Ordered on next Purchase order #100, 6 wooden bar chairs (WBC-01) at $80.00 each, plus GST, from Wood Products of Canada, terms 2/10, net 30 with delivery date of March 11.

Mar 3 Retail sale to new customer, Your Name (first and last) (1290 MacKenzie Ave, Kamloops, British Columbia, V2B 8R2), of two (2) wooden footstools (WFS-01) at $28.50 each, plus GST and PST. Cheque #896 received. The manager is sure that we will sell to them again and recommended a $1,000.00 credit limit.

Mar 5 Purchased without a Purchase order, 1 lot of various store supplies $200.00, plus GST and PST from Paper Place Inc. on invoice #7512. Terms 2/10, net 30.

Mar 5 Received and deposited Cheque #489 as a $200.00 deposit (20%) from new Retail customer
Lucy Banes (1798 Fortune Drive, Kamloops, British Columbia, V2B 7Q2) for a $1,000.00 special order of 4 dining room chairs (DRCM-01) at $250.00 each, plus GST and PST. Credit limit $1,500.00. Sales order #100 was issued with an expected shipping date of Mar 28.

Mar 6 The manager advised you that she used the business Universal Credit card to purchase $50.00, plus GST and PST, on invoice #223 for miscellaneous repair parts for store equipment from Avery Parts. Charge “Other Expenses” for this purchase.

Mar 8 Paid $825.00 to the owner, Harriet Patel, as a first draw for March.

Mar 11 Four of the chairs ordered on PO #100 from March 2nd arrived with invoice #6896 dated today, with a note from the shipping department of Wood Products of Canada, that 2 chairs are backordered for 15 days.

Mar 12 Sold a used leather office chair (OFC-Usd) to the local senior citizens group (6863 Victoria Street, Kamloops, British Columbia V2A 4X4) for $100.00, less a 10% discount, plus GST and PST. The group has been given 10 days to pay for the chair. Credit limit $200.00. (Note: No additional senior’s discount allowed, as the chair was reduced in price.) Mar 12 Returned one of the chairs from Wood Products of Canada invoice #6896. The seat part has cracked and the chair cannot be used. The chair was accepted for return.

Mar 14 Sent a cheque to Paper Place to pay for goods purchased on March 5 invoice #7512.

Mar 15 Cheque issued to pay the February HST amounts owing to the Receiver General – GST.

Mar 15 Sold on next invoice to Grant Legal Services (6568 Summit Drive, Kamloops, British Columbia, V2E 6M8) 30 stacking chairs (SC-02) at $29.00 each, plus GST and PST. Terms 2/10, net 30. Credit limit $2,000.00.

Mar 15 Received a $300.00 bank Debit Memo that the $300.00 loan payment was taken from our account today. The $300.00 payment includes interest of $46.83.

Answer rating: 100% (QA)

Part a Information Required cost of Goods Sold or GP Ratio and Opening Balance ... View the full answer