Question

: Enter the following transactions into the correct journals (20 minutes):

(NOTE: Include your student signature for all transactions, eg LASTNAME – LAST FOUR DIGITS of student number - A, B, C etc.). The date for all transactions is May 15.)

1. Cash sale (One time customer) – Furnace installation - $1,000 plus GST and PST. Received cheque number 345 in full payment. (Put number 9 then last four digits of your student signature before the invoice number).

2. Received an invoice MT-921 from Manitoba Telephone for $100 plus GST and PST. Record the telephone expense and payment by cheque of the invoice as a single “cash purchase.”

         Which “journal” was used to record this transaction? ___________________________

         What other journal in Payables could have been correctly used for this transaction?                                                                                                      ___________________________

3. Received cheque #951 from Oak Bluff Banquet Hall - $560 payment on account. Apply against any invoice.

4. Bought Service Equipment from Killarney Furnace Equipment - Cost $1,500 plus GST and PST. Invoice #SE-753. Killarney Furnace Equipment will be paid next month.

5. Cheque to Willow Garage, $725 in partial payment of invoice W-1142.

6. Adjust the following purchase invoice as indicated:

Beausejour Chimney Products, Invoice T-1199: Purchase was recorded as $1,596 plus GST and PST. Change purchase to $1,269 plus GST and PST (accept GST / PST codes made available).

7. Bank memo # 777. A bank entry reduces company’s bank account by $1,250 to make a part payment on the outstanding Bank Loan payable. Apply entire amount to Bank Loan payable.

Sales invoice–Brandon School Board $600 for Service Contract plus GST/PST. Invoice due

Answer 1

May 15

Sales a\c Dr.   1000+GST +PST

To cash                               1000+GST +PST

(for cash sales recorded, since the rate of GST and PST is not mentioned that has not been included in value)

Telephone expense a\c Dr.          100+GST +PST

To bank                                                            100+GST +PST

(for telephone expense paid recorded, since the rate of GST and PST is not mentioned that has not been included in value)

Bank a\c Dr.                      560

To Oak Bluff Banquet Hall                           560

(for payment received)

Service equipment a\c Dr.            1500+GST +PST

To Killarney Furnace equipment                1500+GST +PST

(for credit purchase recorded, since the rate of GST and PST is not mentioned that has not been included in value)

Willow Garage a\c Dr.                   725

To bank                                                            725

(for amount paid)

Beausejour Chimney Products a\c Dr.    327+GST +PST

TO purchase return                                                                     327+GST +PST

(for purchase return recorded)

Bank Loan payable a\c Dr.                           1250

To bank                                                                            1250

(for bank loan paid)

Brandon school Board a\c Dr.                    600+GST +PST

To sales                                                                           600+GST +PST

(for credit sales recorded since the rate of GST and PST is not mentioned that has not been included in value)