Transactions for the month of August:

3600

22

7108

100102

Aug 1

Paid the amount owing from July 31 for salaries payable amounting to $9,600, Cheque #7107.

Paid rent for August amounting to $1050, Cheque #7108

Aug 1

1050

600

Goulet Inc. decided to establish a petty cash fund for the office. A cheque #7109 of $600 was

Aug 5

issued and cashed.

6100

Purchased merchandise from Design Shirts Co. on account, invoice #425; 6,100 units at $26

Aug 5

each. Terms of the purchase were net 30, FOB Destination. The seller paid the shipping cost

26

amounting to $522. Note: Update the Inventory Valuation table after each purchase.

August 0

4250

Sold mechandise on accout to Dunn Inc., 4,250 units at $60 each with invoice #100102.

The

Aug 7

invoice terms were 3/10, net 30, FOB Destination. Note: Update the Inventory Valuation table

60

after each sale.

August 0

15400

Aug 12

Paid $15,400 with a cheque #7110 to Design Shirts Co. for the July invoices owing.

11

7650

Aug 14

Dunn Inc. paid invoice #100102 less the discount.

893

The employees are paid bi-weekly. Paid the payroll for the first half of August, cheque #7111.

Aug 15

Gross pay is $17,500, CPP is $893, EI is $329 and income tax is $3,500. Use the general journal

329

to record this.

3500

Record the employer's share of CPP (100%) and EI (140%) of what was deducted from

Aug 15

employees.

Bought inventory from Gabe Clothing Co. with cheque #7112, 3,600 units at $22 per unit.

Aug 18

Note: Update Inventory Valuation table to reflect purchase.

3000

Sold 3,000 units on account at $63 each with invoice #100103 to Moreau Inc.. The invoice

Aug 20

term 3/10, net 30, FOB shipping point. Note: Update Inventory Valuation table.

0.03

Received $7,120 from Vachon Inc. for a sale on account last month.

Aug 20

166

The remaining balance of the petty cash account was $245. Total expenses incurred using the

245

petty cash fund this month amounting to $230. In this amount, it includes the shipping cost

Aug 25

incurred on August 7 in the amount of $166 and the other costs are for the office supplies

expense.

Prepare the entry to replenish the petty cash fund with Chq #7113 .

1880

Made monthly bank loan payment of $2,209 which includes $1,880 principal and $329

Aug 31

interest.

329

Prepared the payroll for the second half of August to be paid on September 5. Gross pay is

Aug 31

$19,000, CPP is $969, EI is $357 and income tax is $3,800. The cheque will be prepared later.

Use the general journal to record this.

Record the employer's share of CPP (100%) and EI (140%) of what was de