Question

In: Accounting

Problem 7–8B Lively Home Products had the following transactions for the month of June 2017: Jun. ...

Problem 7–8B Lively Home Products had the following transactions for the month of June 2017:

Jun. 1 Sold $4,000 of merchandise to Thomas Chase, terms n/30. Inventory had a cost of $2,248. The sale was subject to 7 percent PST and 5 percent GST.
3 Purchased $9,000 of merchandise from STU Suppliers Inc., terms net 30, subject to 5 percent GST. The invoice was dated June 3.
6 Paid for the purchase of June 3 (STU Suppliers Inc.), cheque no. 12.
7 Paid $8,500 wages to employee, cheque no. 13.
9 Owner withdrew $22,500 for personal use, cheque no. 14.
11 Collected the amount owed by Thomas Chase (June 1).
13 Purchased equipment from DE Machinery Inc. for $25,000 plus 5 percent GST, terms n/30. The invoice was dated June 12.
14 Issued a debit memo to DE Machinery Inc. (June 13) for $3,000 plus 5 percent GST of equipment returned as defective.
15 Sold merchandise to DePloy Construction Ltd. for cash of $7,500 plus 7 percent PST and 5 percent GST. Inventory had a cost of $4,500.
16 Paid the account owing to DE Machinery Inc. (June 13, 14), cheque no. 15.
17 Purchased equipment from Alfreds Equipment Inc. for $21,000 plus 5 percent GST, terms net 60. The invoice was dated June 16.
22 Paid a $15,000 note due to Commercial Bank, plus interest of $1,500, cheque no. 16.
24 Sold $5,200 of merchandise for cash; inventory cost was $3,000. The sale was subject to 7 percent PST and 5 percent GST.
25 Paid $2,250 to Canada Revenue Agency for income taxes owing for the year 2016, cheque no. 17.
26 Returned merchandise purchased from STU Suppliers Inc., $1,500 plus 5 percent GST.
28 Purchased inventory for $9,000 plus 5 percent GST from Damon Ltd., promising to pay in 30 days. The invoice was dated June 28.
30 Recorded the adjusting journal entries for the month of June.
  1. For each date, indicate which journal would be used to record the transaction assuming Lively Home Products uses a general journal, a sales journal, a cash receipts journal, a purchases journal, and a cash payments journal.

  2. Record the appropriate transactions in the cash receipts journal and the cash payments journal using the special journal formats shown in Exhibit 7A–1 found in the online Appendix.

Solutions

Expert Solution

1. For each date, indicate which journal would be used to record the transaction assuming Lively Home Products uses a general journal, a sales journal, a cash receipts journal, a purchases journal, and a cash payments journal.

2. Record the appropriate transactions in the cash receipts journal and the cash payments journal using the special journal formats shown in Exhibit 7A–1 found in the online Appendix.


Related Solutions

The following information relates to Shelby Simms business for the month of June, 2020: Jun. 1...
The following information relates to Shelby Simms business for the month of June, 2020: Jun. 1 Ms. Simms books showed the following balances brought forward from May 31st, 2020; Loan (Due 2024) $2,500,000; Cash $1,500,000; Inventory $350,000; Bank $900,000; Land and building $2,000,000; Motor vehicle $950,000 Jun. 2 Paid rent for June by cheque $120,000. Jun. 3 Purchased of office furniture by cheque $150,000. Jun. 3 Bought goods by cheque $175,000. Jun. 4 Sold goods for cash $800,000. Jun. 5...
Transactions for the month of June were:                                    Pur
Transactions for the month of June were:                                    Purchases                                                       Sales                                   June  1        (balance) 3,200 @ $3.20                  June 2 2,400 @ $5.50                                   3                        8,800 @   3.10                            6 6,400 @   5.50                                   7                        4,800 @   3.30                            9 4,000 @   5.50                                 15                        7,200 @   3.40                          10 1,600 @   6.00                                 22                        2,000 @   3.50                          18 5,600 @   6.00                                                                                                               25    800 @   6.00 Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is? 1) 16440 2) 16640 3)17160 4)17880
The following are transactions for Chandler Fashions for the month of June. June 2              Purchased 3,000 items...
The following are transactions for Chandler Fashions for the month of June. June 2              Purchased 3,000 items of inventory under terms 1/10, n/60 and FOB shipping point from Flower Manufacturing.  The merchandise had a cost of $12,000 June 7                  Returned defective merchandise to Flower Manufacturing with invoice price of $4,000. June 8                 Paid the freight charges on the purchase from Flower Manufacturing in     cash for $200. June 9              Sold merchandise to Trendy Store on account for $10,000 with terms 2/15, n/60  FOB shipping point.                    Cost of the...
1. Transactions for the month of June were:                                    Purchases&
1. Transactions for the month of June were:                                    Purchases                                                          Sales                                         June 1             (balance) 3,200@ $3.20                    June 2      2,400 @ $5.50                                   3                          8,800 @   3.10                            6      6,400 @   5.50                                   7                          4,800 @   3.30                            9      4,000 @   5.50                                 15                          7,200 @   3.40                          10      1,600 @   6.00                                 22                          2,000 @   3.50                          18      5,600 @   6.00                                                                                                               25         800 @   6.00 16.     Assuming that perpetual inventory records are kept in units only, the ending inventory...
The following is the transactions for the month of August 2017. At a starting capital 0f...
The following is the transactions for the month of August 2017. At a starting capital 0f $25,000 Aug 1- Bought goods from Nestle ltd by cheque for $12,500. 6 - Good sold to Tru Value supermarket by cheque for $900 9 - Massy stores paid us by cheque for goods valued at $7,500 10 - Bought goods paying by cheque $21,000 recieving a 5% trade discount 15 - Recieved a cheque from Tru Value for goods valued $6,500 21 -...
Bratt Plumbing Company had the following transactions for June. June 1 Paid $555 for rent for...
Bratt Plumbing Company had the following transactions for June. June 1 Paid $555 for rent for the month of June. 2 Paid $225 for one month of insurance. 5 Collected $1,325 for plumbing services provided. 9 Provided Jeff Dupuis, a potential customer, with an estimate of $405 for plumbing work that will be performed in July if the customer hires Bratt Plumbing. 14 Paid $710 for supplies purchased on account in May. The purchase in May had been correctly recorded....
The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1.Issued 140,000 shares of common stock in exchange for $700,000 cash. 2.Purchased furniture and fixtures at a cost of $113,750. $45,500 was paid in cash and a note payable was signed for the balance owed. 3.Purchased inventory on account at a cost of $280,000. The company uses the perpetual inventory system. 4.Credit sales for the month totaled...
The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 125,000 shares of common stock in exchange for $625,000 cash. Purchased furniture and fixtures at a cost of $102,500. $41,000 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $250,000. The company uses the perpetual inventory system. Credit sales for the month totaled...
Park Company's perpetual inventory records indicate the following transactions in the month of June:
Alternative Inventory MethodsPark Company's perpetual inventory records indicate the following transactions in the month of June:UnitsCost/UnitInventory, June 1200$3.20Purchases:      June 32003.50      June 172503.60      June 243003.65Sales:      June 6300      June 21200      June 27150Required:1.Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: If required, round your answers to the nearest dollar.FIFOCost of Goods Sold$  fill in the blank 1Ending Inventory$  fill in the blank 2LIFO (Round your intermediate calculations and final answers to the nearest cent.)Cost of...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 95,000 shares of common stock in exchange for $475,000 cash. Purchased office equipment at a cost of $83,750. $33,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $190,000. The company uses the perpetual inventory system. Credit sales for the month totaled $323,000....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT