Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2023, Modern Electronics purchased from Speedy Supplies $80,000 of inventory on account. On May 15, 2023, Modern Electronics sold inventory to a Jones Apartment Complex for $60,000 cash, which included $50,000 COGS for the inventory. On June 15, 2023 Modern Electronics remitted the applicable PST and GST or HST. Use the PST, GST, and HST rates in Exhibit 10.6. Required: Journalize Modern Electronics Company transactions on April 1, 2023, May 15, 2023, and June 15, 2023, including applicable PST and GST or HST assuming it is located in: a. Ontario b. British Columbia c. Alberta Part a. Modern Electronics is located in Ontario with 13% HST Part b. Modern Electronics is located in British Columbia with 7% PST 5% GST Part c . Modern Electronics is located in Alberta with 5% GST

Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2023, Modern Electronics purchased from Speedy Supplies $80,000 of inventory on account. On May 15, 2023, Modern Electronics sold inventory to a Jones Apartment Complex for $60,000 cash, which included $50,000 COGS for the inventory. On June 15, 2023 Modern Electronics remitted the applicable PST and GST or HST. Use the PST, GST, and HST rates in Exhibit 10.6. Required: Journalize Modern Electronics Company transactions on April 1, 2023, May 15, 2023, and June 15, 2023, including applicable PST and GST or HST assuming it is located in: a. Ontario b. British Columbia c. Alberta Part a. Modern Electronics is located in Ontario with 13% HST Part b. Modern Electronics is located in British Columbia with 7% PST 5% GST Part c . Modern Electronics is located in Alberta with 5% GST

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
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On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer. The entity allowed trade discounts of 15%, and 10%. Credit terms were 3/10, n/30 and the sale was made FOB destination. AAA Company paid 100,000 of the delivery cost. a. Compute the total amount of purchases to be included on the buyer’s inventory in the determination of cost of goods available for sale if payment was made beyond the discount period. b. What is the full amount received by AAA company if payment was made on June 11, 2023?
Swifty Industries purchased $10,600 of merchandise on February 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,600 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. (a) Assuming that Swifty uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Feb. 1 Feb. 4 Feb. 13 < Account Titles and Explanation Debit Credit
Slinky Company purchased merchandise on June 10, 2021, at a price of $38,000, subject to credit terms of 3/10, n/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system.Required:1. Prepare the journal entry to record the purchase.2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2021 and July 8, 2021.
On May 11, 2023, Wilson Purchasing purchased $30,000 of merchandise from Hostel Sales, terms 3/10, n/90, FOB Hostel Sales. The cost of the goods to Hostel was $20,000. Wilson issued cheque #84 in the amount of $335 to pay Express Shipping Service for the delivery charges on the merchandise on May 11 On May 12, Wilson returned $1,200 of goods to Hostel Sales, which restored them to inventory. The returned goods had cost Hostel $800. On May 20, Wilson mailed cheque #85 to Hostel for the amount owed on that date. Hostel received and recorded the cheque on May 21 Required: 1. Record the transactions for Wilson Purchasing in a Purchases Journal, Cash Payments Journal, and General Journal as appropriate assuming a periodic inventory system. (Enter the transactions in the order provided in the question.) Date May 11 Date May 11 May 20 Account Credited Hostel Sales Ch. No. 84 85 Date of Invoice May 11 Payee Express Shipping Service Hostel Sales WILSON PURCHASING Purchases Journal Terms 3/10,…
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Oriole Industries purchased $13, 200 of merchandise on February 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $3,200 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. (a) Your answer is partially correct. Assuming that Oriole uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
On December 28, 2021, Videotech Corporation (VIC) purchased 10 units of a new satellite uplink system from Iristar Communications for $29,000 each. The terms of each sale were 2/10, n/30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2022. Prepare the journal entries on December 28 and January 6 to record the purchase and payment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $29,000 each. The terms of each sale were 2/10, n/30. Record the purchase on December 28, 2021. Note: Enter debits before credits. Date December 28, 2021 General Journal Inventory Accounts payable Debit Credit >
Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are…
Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13
Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Instructions a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. b. Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. c. At what amount would the purchase on February 1 be recorded if the net method were used?