Gary s Music is a store that buys and sells musical instruments in Ontario, where the HST
Fantastic news! We've Found the answer you've been seeking!
Question:
Garys Music is a store that buys and sells musical instruments in Ontario, where the HST rate is
Garys Music uses a perpetual inventory system and the earnings approach to revenue
recognition. Transactions for the business are shown below:
Nov. Purchased electric guitars from Fender Supply Limited, on account, at a
cost of $ each.
Made a cash sale of keyboards for a total invoice price of $ plus
applicable taxes. The cost of each keyboard was $
Received a credit memorandum from Western Acoustic Inc. for the return of
an acoustic guitar that was defective. The original invoice price before taxes
was $ and the guitar had been purchased on account. Garys Music
intends to return the defective guitar to the original supplier.
One of the keyboards from the cash sale of November was returned to the
store for a full cash refund because the customer was not satisfied with the
instrument. The keyboard, which cost $ was returned to inventory.
Purchased supplies from a stationery store. The price of the supplies is $
before all applicable taxes.
Sold one Omega trumpet to Regional Band, on account, for an invoice price
of $ before applicable taxes. The trumpet had cost Garys Music
$
Purchased two saxophones from Yamaha Canada Inc. on account. The
invoice price was $ for each saxophone, excluding applicable taxes.
Collected $ on account. The payment included all applicable taxes.
Returned to Yamaha Canada Inc. one of the saxophones purchased on
November as it was the wrong model. Received a credit memorandum
from Yamaha for the full purchase price.
Prepare the journal entries to record the garys music transaction
Related Book For
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date: