Q1. Accounting with sales journal and purchases journal (20 Marks) (GST version) Top Traders Ltd uses sales and purchases joumals in its accounting system. The follownig transactions oocuned during April 2019. April 5 Purchased merchandise on account from Smythe Ltd. invoice 354. $1500. terms 2110. m'30. 8 Purchased merchandise on accwnt from Ellis Ltd. invoice 376. $T80. terms 2o'10. um. 10 Sold merchandise on account to B. Morran. invoice 345, $2280. 16 Sold merchandise on account to Bryde Ltd. invoice 346. $2640. 19 Purchased merchandise on account from Fl. Haber. invoice 828. $630, terms 2H0. nr'30. 26 Sold merchandise on account to G. Green, invoice 347. $1840. 29 Sold merchandise on account to we Ltd1 invoice 348, $1200. Required (a) Complete the requirements below, assuming that the business is registered for the GST. 1. Establish all necessary general ledger accounts. accounts receivable subsidiary ledger accounts. and accounts payable subsidiary ledger accounts. Use the following account numbers: Accounts Receivable. 1200; GST Receivable. 1300; Accounts Payable. 2200; GST Payable. 2300: Sales. 4100; Purchases 5100. (5 Marks) ii. Enter the transactions for April in the appropriate special journals. [5 Marks) ill. Post the data from the journals to the general ledger and subsidiary accounts. (5 Marks) iv. Prepare a schedule of the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger as at 30 April to prove that their totals are equal to the balances of the control accounts. (5 Marks) 0:. Secure Storage Services 1was formed on 1 hiay 2020. The following transactions tool: place during the rst month. (30 Marks} Transactions on 1 May: 1. 2. Paul Taylor invested $60,000 cash in the business, as its sole owner. Hired two employees to work in the warehouse. They will each be paid a salary of $1 ,000 per month. Signed a 2-year rental agreement on a warehouse; paid $13,000 cash in advance for the rst year. Purchased furniture and equipment costing $35,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months. . Paid $1,500 cash for a 1-year insurance policy on the furniture and equipment. Transactions during the remainder of the month: 6. TI". 3. 9. Purchased basic office supplies for $500 cash. Purchased more ofce supplies for $1,500 on account. Total revenue earned was $15,000 $5,000 cash and $10,000 on account. Paid $400 to suppliers for accounts payable due. 10.Received $2,500 from customers in payment of accounts receivable. 11.Received utility bills in the amount of $200, to be paid next month. 12.Paid the monthly salaries of the two employees, totaling $2,000. Required {a} Prepare journal entries to record each of the events listed. {5 Marks) {b} Post the journal entries to T accounts. (5 Marks) {.2} Prepare a trial balance as at 31 May 2020. {10 Marks] {d} Prepare an income statement and a statement of equity for Secure Storage Services for the month ended 31 May 2020, and a statement of nancial position as at 31 May 2020. (10 Marks]
