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Chris's Music is a store that buys and sells musical instruments in Ontaria, where the HST rate is 1 3 % Chris's Music uses a
Chris's Music is a store that buys and sells musical instruments in Ontaria, where the HST rate is Chris's Music uses a perpetual
imentory system and the earnings approach to revenue recognition. Transactions for the business are shown below:
Now. Purchased electric guitars from Fender Supply Limited on account, at a cost of $ each.
Made a cash sale of loeyboards for a total inwoice price of $ plus applicable tawes. The cost of each keyboard
was $
Received a credit memorandum from Western Acoustic Inc. for the return of an acoustic guitar that was defective
The original invoice price before taxes was $ and the guitar had been purchased on account. Chris's Musi
intends to return the defective guitar to the original supplier.
One of the keyboards from the cash sale of Nowember was returned to the store for a full cash refund because the
customer was not satisfied with the instrument. The keyboard, which cost $ was returned to inventory.
Purchased supplies from astationery store. The price of the supplies is $ before all applicable taxes.
Sold one Omega trumpet to Regional Band, on account, for an irvoice price of $ before applicable tawes. The
trumpet had cost Chris's Music $
Purchased two saxaphones from Yamaha Canada Inc. on account. The imvoice price was $ for each saxaphone,
excluding applicable tawes.
Collected $ on account. The payment included all applicable taxes.
Returned to Yamaha Canada Inc. one of the sawophones purchased on November as it was the wrong model.
Received a credit memorandum from Yamaha for the full purchase price
Made a payment on account for the amount owing to Fender Supply Limited for the purchase of November
Prepare the journal entries to record the Chris's Music transactions. Credit account titles are autamatically indented when the omount is
entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.
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