Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ananya Ltd sells a range of tea mugs to retailers. Below is the January 2019 purchase schedule for the Dynomug. Ananya Ltd's general ledger includes

image text in transcribed

Ananya Ltd sells a range of tea mugs to retailers. Below is the January 2019 purchase schedule for the Dynomug. Ananya Ltd's general ledger includes the following accounts, among others: Cash, Accounts Receivable, Inventory, GST Clearing, Accounts Payable, Sales, Sales Discounts, and Sales Returns & Allowances. Purchases schedule for January 2019 Type of tea mug: Dynomug Date shipped Quantity $ Unit cost* Total* Date received purchased 02/01/19 1,000 4.00 $4,000.00 03/01/19 05/01/19 2,000 4.00 $8,000.00 05/01/19 12/01/19 1,500 4.00 $6,000.00 14/01/19 25/01/19 1,200 4.00 $4,800.00 26/01/19 *Not including GST. In other words, these figures are net of GST. Below is the January 2019 sales schedule for the Dynomug: Sales schedule for January 2019 Type of tea mug: Dynomug Date shipped Quantity sold Total Sale Date received by customer (including GST) 06/01/19 2,500 $28,750 08/01/19 24/01/19 2,000 $23,000 24/01/19 Required: a) All purchases and sales of inventory are on credit, terms 2/10 net 30, and Ananya Ltd and all of its suppliers are GST registered. Ananya Ltd uses the gross purchases method to record purchases under the perpetual inventory system; however, because Ananya Ltd considers purchase discounts to be immaterial, the company credits Cost of Goods Sold when paying for merchandise within the discount period. i) Prepare Ananya Ltd's journal entry for the 02/01/19 purchase of Dynomugs. ii) Prepare Ananya Ltd's journal entry for the payment of the 05/01/19 purchase within the discount period. iii) Prepare Ananya Ltd's journal entry for the 06/01/19 sale of the Dynomugs. iv) Before paying for the 06/01/19 sale, Ananya Ltd's customer was granted a $115 allowance, including GST. Prepare Ananya Ltd's journal entry granting the allowance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Empirical Studies On Economics Of Innovation Public Economics And Management

Authors: Mehmet Huseyin Bilgin, Hakan Danis, Ender Demir, Ugur Can

1st Edition

3319501631, 9783319501635

More Books

Students also viewed these Accounting questions

Question

Describe contributions of Melanie Klein.

Answered: 1 week ago

Question

Do you suggest Lisa use a PEO? Why?

Answered: 1 week ago