The following selected transactions of Buckstar Beverages Inc., were completed during the last few months of...
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The following selected transactions of Buckstar Beverages Inc., were completed during the last few months of 2021 and the first month of 2022. Read through each transaction and ensure that you see the "additional information" below prior to starting this question. 2021 Purchased 50 signature expresso machines that will be resold to customers. The Buckstar leadership team believes that customers will develop a stronger attachment to the brand if they can brew their own "Buckstar experience" at home. Each machine costs $400 + HST and will be sold for $850 + HST. Buckstar purchased these machines on account from Nespresso Corporation. Nov 1 Nov 30 Buckstar recorded November cash sales: • Food and beverage sales of $12,000 + HST Sold 40 signature espresso machines, for $800 + HST each. The price includes a two-year warranty. On the basis of past experience, the warranty costs are estimated to be $60 per espresso machine ($40 for labour and $20 for parts). Dec 31 Buckstar recorded December cash sales: • Food and beverage sales of $27,000 + HST • Café merchandise (mugs and pre-packaged coffee) in the amount of $2,500 + HST. Buckstar uses a revenue account called Café Product Revenue to track these types of merchandise sales. • Sold $2,500 worth of gift cards for cash. From previous years, it is expected that 95% of these gifts will be redeemed. Buckstar completed the HST remittance. Assume that any HST receivable or payable was actually received/paid on January 15. Dec 31 Completed adjustments for the end of the fiscal year (hint – only adjustment is for the warranty!) Dec 31 2022 Six customers who purchased signature espresso machines in November, required a service call for repairs that were completed the same day. The cost of the repairs for gach machine serviced under the warranty consisted of $20 for the materials taken from the parts inventory and $40 of labour. These were the only repairs required in 2022 for these espresso machines Jan 20 Buckstar recorded January sales: • Café merchandise (mugs and pre-packaged coffee) in the amount of $1,000 + Jan 31 HST. • Customers used gift cards to pay for the merchandise purchase entirely. Additional Information • Buckstar operates out of Ontario, and is an HST registrant. October 31 account balances for HST receivable and payable are as follows: $ 8,500 DR $ 2,500 CR HST receivable HST payable Year end for Buckstar is December 31. • Ignore Cost of Goods Sold entries with sales. • Buckstar records all sales on the last day of cach month (for simplicity purposes) Instructions: Prepare all of the entries associated with the above transactions. Ignore any cost of goods sold entries. Please ensure that you show itemized, detailed, and labeled calculations for support on cach entry. Each entry will require a supporting calculation! You are STRONGLY encouraged to use T-Accounts to track your account balances for your HST remittance entries. The following selected transactions of Buckstar Beverages Inc., were completed during the last few months of 2021 and the first month of 2022. Read through each transaction and ensure that you see the "additional information" below prior to starting this question. 2021 Purchased 50 signature expresso machines that will be resold to customers. The Buckstar leadership team believes that customers will develop a stronger attachment to the brand if they can brew their own "Buckstar experience" at home. Each machine costs $400 + HST and will be sold for $850 + HST. Buckstar purchased these machines on account from Nespresso Corporation. Nov 1 Nov 30 Buckstar recorded November cash sales: • Food and beverage sales of $12,000 + HST Sold 40 signature espresso machines, for $800 + HST each. The price includes a two-year warranty. On the basis of past experience, the warranty costs are estimated to be $60 per espresso machine ($40 for labour and $20 for parts). Dec 31 Buckstar recorded December cash sales: • Food and beverage sales of $27,000 + HST • Café merchandise (mugs and pre-packaged coffee) in the amount of $2,500 + HST. Buckstar uses a revenue account called Café Product Revenue to track these types of merchandise sales. • Sold $2,500 worth of gift cards for cash. From previous years, it is expected that 95% of these gifts will be redeemed. Buckstar completed the HST remittance. Assume that any HST receivable or payable was actually received/paid on January 15. Dec 31 Completed adjustments for the end of the fiscal year (hint – only adjustment is for the warranty!) Dec 31 2022 Six customers who purchased signature espresso machines in November, required a service call for repairs that were completed the same day. The cost of the repairs for gach machine serviced under the warranty consisted of $20 for the materials taken from the parts inventory and $40 of labour. These were the only repairs required in 2022 for these espresso machines Jan 20 Buckstar recorded January sales: • Café merchandise (mugs and pre-packaged coffee) in the amount of $1,000 + Jan 31 HST. • Customers used gift cards to pay for the merchandise purchase entirely. Additional Information • Buckstar operates out of Ontario, and is an HST registrant. October 31 account balances for HST receivable and payable are as follows: $ 8,500 DR $ 2,500 CR HST receivable HST payable Year end for Buckstar is December 31. • Ignore Cost of Goods Sold entries with sales. • Buckstar records all sales on the last day of cach month (for simplicity purposes) Instructions: Prepare all of the entries associated with the above transactions. Ignore any cost of goods sold entries. Please ensure that you show itemized, detailed, and labeled calculations for support on cach entry. Each entry will require a supporting calculation! You are STRONGLY encouraged to use T-Accounts to track your account balances for your HST remittance entries.
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Buckstar Beverages Inc Ledger Accounts From 01Nov2021 to 31Jan2022 Bank Account Debits Credits Date Particulars Amount Date Particulars Amount 30Nov21 Sales 1260000 01Nov21 Purchases 2100000 Food and ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
Posted Date:
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