Question
Please complete your answers in the answer booklet provided and submit the completed booklet to the course Dropbox. Question: Mary James owns Marys Card House
Please complete your answers in the answer booklet provided and submit the completed booklet to the course Dropbox.
Question:
Mary James owns Marys Card House in Halifax. As her newly hired accountant, your task is to:
a. Journalize the following transactions for the month of March.
b. Record in subsidiary ledgers and post to the general ledger as appropriate.
c. Total, rule, and cross-add the various journals.
d. Prepare a schedule of accounts receivable and a schedule of accounts payable at month-end.
The following is the partial chart of accounts for Marys Card House.
Assets
1100 Cash 1200 Accounts Receivable 1450 Prepaid Rent 1500 Inventory 1620 Delivery Truck
| Revenue
4100 Card Sales 4120 Sales Returns and Allowances 4130 Sales Discounts |
Liabilities
2100 Accounts Payable 2200 Bank Loan Payable 2300 HST Payable 2320 Prepaid HST
| Expenses
5100 Cost of Goods Sold 5200 Salaries Expense 5250 Cleaning Expense
|
Owners Equity
3000 M. James, Capital |
|
**Note: All purchases and sales are subject to a charge of 15% HST, and it is not included in the price.
2020 |
|
|
Mar. | 1 | Mary James invested $28,000 in the card store.
|
| 1 | Paid four months rent in advance to Harbour Realty, Cheque No. 700, $3,600
|
| 2 | Purchased merchandise from X-Card Company on account, $8,200. Invoice No. 823 dated March 2, terms 2/10, n/30.
|
| 3 | Sold merchandise to Jas Investors on account, $2,600. Invoice No. 325, terms 2/10, n/30. Cost of merchandise was $2,000.
|
| 4 | Sold merchandise to Paton Lee on account, $1,300. Invoice No. 326, terms 2/10, n/30. Cost of merchandise was $975.
|
| 7 | Purchased merchandise from X-Card Company on account, $2,500. Invoice No. 829, dated March 7, terms 2/10, n/30.
|
| 8 | Sold merchandise to Jas Investors on account, $1,200. Invoice No. 327, terms 2/10, n/30. Cost of merchandise was $800.
|
| 8 | Paid Able Cleaning Service $220. Cheque No. 701.
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| 9 | Paid X-Card company invoice No. 823, dated March 2, cheque No. 702, taking discount.
|
| 10 | Paton Lee returned merchandise that cost $200 to Marys Card House. Mary issued credit memorandum No. 1 to Paton Lee for $200. Cost of inventory returned was $150.
|
| 10 | Purchased merchandise from Kaelynn Imports on account, $3,100. Invoice No. 510, dated March 10, terms 1/15, n/60.
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| 11 | Arranged $35,000 bank loan with Royal Bank. Deposited today to the companys bank account.
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| 14 | Sold $1,000 worth of card merchandise for cash. Cost of inventory was $750.
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| 14 | Paid casual salaries, $400, cheque No. 703.
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| 14 | Returned merchandise to Kaelynn Imports in the amount of $800. Marys Card House issued debit memorandum No. 1 to Kaelynn Imports.
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| 14 | Sold card merchandise for cash, $5,500. Cost of inventory was $4,125. |
| 14 | Received payment from Paton Lee, invoice No. 326, (less returned merchandise), less discount.
|
| 15 | Jas Investors paid invoice No. 325, no discount.
|
| 15 | Sold card supplies to Gayle Herbert on account, $6,000. Invoice No. 328, terms 2/10, n/30. Cost of inventory was $4,500.
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| 16 | Purchased used delivery truck on account from Halifax Auto, $11,000. Invoice No. 926, dated March 16 (no discount terms).
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| 16 | Sold to Jas Investors card merchandise on account, $1,000. Invoice No. 329, terms 2/10, n/30. Cost of inventory was $750.
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| 16 | Paid Kaelynn Imports balance owed, cheque No. 704, taking discount.
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| 17 | Sold card merchandise on account to Gayle Herbert, $1,000. Invoice No. 330, terms 2/10, n/30. Cost of inventory was $750.
|
| 18 | Purchased for cash, card display supplies from AMR Supplies, $500. Cheque No. 705.
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| 21 | Purchased card merchandise from Benson and McIntyre on account, $3,500. Invoice No. 189, dated March 21, terms 2/10, n/30.
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| 21 | Jas Investors paid invoice No. 329, dated March16, taking discount.
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| 22 | Gayle Herbert paid invoice No. 330, dated March 17, taking discount.
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| 23 | Purchased merchandise from X-Card Company, $1,000. Invoice No. 1004, dated March 22, terms 2/10, n/30.
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| 23 | Paid half of the balance to Halifax Auto on their invoice No. 926, cheque No. 706. |
| 31 | Sold merchandise to Youville Company on account, $4,500. Invoice No. 331, terms 2/10, n/30. Cost of inventory was $3,375.
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