Question
(a) Set up a Cash Receipts Journal (page CR4) with the following headings: Date, Account Cr., Memo, Folio, Accounts Receivable Cr., Sales Cr., GST Payable
(a) Set up a Cash Receipts Journal (page CR4) with the following headings: Date, Account Cr., Memo, Folio, Accounts Receivable Cr., Sales Cr., GST Payable Cr., PST Payable Cr., General Ledger Cr., and Bank Dr.
(b) Record the following transactions on the books of Grouse Mountain Industries of Vancouver, B.C., for the month of February, 20. Add 5% GST and 7% PST to all sales.
20 Feb. 1 Received $900 plus GST from P. Simons for office space sublet to him. (Credit Rent Revenue.) 2 Cash sales, $1,279 plus taxes. 4 Received $300 from B. Robbins on Invoice #11. 5 Received cheque for $230 from L. Pierce covering Invoice #27. 6 Received cheque for interest earned on a short-term investment, $38. 8 Cash sales, $1,640 plus taxes. 10 Received cheque from B. Robbins on Invoice #33, $250. 12 Cash sales, $2,000 plus taxes. 15 Received cheque from L. Pierce for $400 on Invoice #38. 18 Cash sales, $3,640 plus taxes. 22 Borrowed $15,000 from the bank at a rate of 4.5% interest for five years. (Credit Bank Loan Payable.)(Interest will not be recorded until the first loan payment is made.) 23 D. Jowan, a longtime customer, made a $495 partial payment on Invoice #56. 27 Cash sales, $2,975 plus taxes.
(c) Total and rule the journal. Prove equal debits and credits. (No posting is required.)
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