Question:
Tony Freedman was very happy to see the progress made by using the specialized journals. Effective January 1, 2014, the company obtains an HST number* and so begins to charge HST at 13% on all sales made. The company also pays HST from January 1 on all purchases. The special journals used in Tony€™s company have been modified to include columns for HST, and these can be found in the Study Guide with Working Papers, pages 10-79 to 10-92.
The partial January transactions are as follows:
Assignment
1. Journalize the transactions in the appropriate journals (cash receipts, sales, cash payments, purchases, or general journal).
2. Record in the accounts receivable subsidiary ledger and accounts payable subsidiary ledger and post to the general ledger as appropriate. A partial general ledger is included in the Study Guide with Working Papers.
3. Prepare a schedule of accounts receivable, and a schedule of accounts payable as of January 31, 2014.
Transcribed Image Text:
2014 Jan. Received cheque from Carson Engineering Corp. for amount 3 3 outstanding. Wrote cheque No. 280 to Able Holdings for December, January, and February rent, $1,200 (HST exempt). Bought merchandise on account from Computer Connection (purchase order No. 4016), $2,500, plus HST, terms 3/10, n/30 Paid amount due to Staples (cheque No. 281) Sold $900, plus HST, worth of merchandise to Taylor Golf or credit, sales invoice No. 12690; terms are 2/10, n/30. 3 3 3 Collected $5,085, including HST, for cash sales for the weelk 6 Bought merchandise on account from Multi Systems (purchase 6 Bought office supplies on account from Staples (purchase 9 of January 3. order No. 4017), $300, plus HST; terms are 3/10, n/30. order No. 4018), $200, plus HST; terms are n/30. Paid City Newspaper amount owing from December 31 cheque No. 282. Received electric bill for January, $250, plus HST. Received from Taylor Golf balance owing as of December 31 Purchased merchandise on account from Computer Connection (purchase order No. 4019), $500, plus HST, terms are 1 /30, n/60. Paid West Bell Canada December 11 bill, cheque No. 283. Sold $3,500, plus HST, worth of merchandise on account to Digital Prints Co., invoice 12691, terms are 2/10, n/30. Collected $13,560, including HST, for cash sales for the week of January 10. Paid net amount due to Computer Connection (purchase order No. 4016), less discount, cheque No. 284 Paid amount due to CRA re December wages, cheque No. 285. Received January phone bill, $110, plus HST. Paid Multi Systems re January 6 purchase, less discount, cheque No. 286. Collected $15,820, including HST, for cash sales for the week of January 17. 10 10 10 10 10 10 13 13 13 13 17 Paid Alpha Office Co. the amount owing from December, cheque No. 287 Sold $4,000, plus HST, worth of merchandise on account to Noel Aberhart, sales invoice No. 12692; terms are 4/10 n/30. 17 23 24 Collected $13,560, including HST, for cash sales for the 27 Issued credit memorandum to Digital Prints Co. for $400 27 Collected amount owing (less discount) from Noel Aberhart, 30 Sold $1,600, plus HST, worth of merchandise to Anthony 30 Collected full payment from Digital Prints (remember the 31 Collected $12,430, including HST, for cash sales for the 31 Wrote cheque No. 288 to Automated Payroll Service for week of January 24. worth of merchandise returned (remember the HST), invoice No. 12691. invoice No. 12692. Pitale, invoice No. 12693; terms 2/10, n/30. credit memorandum), invoice No. 12691 week of January 31 January covering January wages, $8,740.20. Tony has decided to spend his time doing repairs and making sales rather than preparing payroll records like he did in November December. The company issues cheques to all employees weekly but obtains one cheque monthly from Tony's company for wages, benefits, and its own charges at month-end. Schedule of Accounts Receivable Precision Computer Centre December 31, 2013 Anthony Pitale Taylor Goltf Carson Engineering Total Amount Due 1,600.00 3,200.00 14,990.00 $19,790.00 Schedule of Accounts Payable Precision Computer Centre December 31, 2013 Alpha Office Co. City Newspaper Staples West Bell Canada Total Amount Payable $318.00 855.00 250.00 165.00 $1,588.00