PRACTICE EXERCISE 11

1. Set up a Purchase Journal for the Bell Athletics Co. of Belleville, ON, using the headings shown in Figure 6.7.

2. Record the following transactions in the Purchase Journal. Add 13% HST to all purchases.

20 May 2 Bought merchandise from Northland Co., $500; Invoice #78 dated May 1; terms net 10 days. 3 Received invoice for $290 from Panda Suppliers for the purchase of office supplies, $120, and warehouse supplies, $170; Invoice #67 dated May 2; terms net 30 days. 5 Bought furniture for office, $1,450, from Ringer Furniture Co., Invoice #63 dated May 3; terms net 90 days. 6 Received Invoice #98 dated May 5 from Brandon Co. for $783 for purchase of merchandise; terms net 10 days. 10 Bought desktop printer from Ringer Furniture Co. for $750; Invoice #72 dated May 8; terms net 90 days. 14 Received Invoice #33 dated May 13 from Green Tree Printers for $90 for advertising material; terms net 10 days. 14 Bought merchandise, $623, from Northland Co.; Invoice #93 dated May 13; terms net 10 days. 16 Bought one-year insurance policy from Yeung Insurance Co. The premium was $175. Invoice #48 was dated yesterday and showed terms of net 10 days. Assume this insurance policy is tax exempt. 19 Bought new file cabinet, $525, from Ringer Furniture Co.; Invoice #88 dated May 17; terms net 90 days. 20 Received Invoice #174 dated May 18 from Nielson Ltd. for merchandise purchased, $916; terms net 30 days. 24 Bought wrapping paper and paper cartons for the warehouse, $230, from Panda Suppliers; terms net 30 days; Invoice #81 dated May 23 29 Bought second-hand truck for the delivery of goods to customers. Harris Trucks Ltd. has sent Invoice #21 for $9,000; terms net 90 days.

3. Total the columns and prove equal debits and credits. See Practice Exercise 12 for posting instructions.