Question 5 (45 marks) Shoes Supreme used the perpetual inventory system. All of its credit sales have the terms 2/10, 1/30. Shoes Supreme incurred the following November 2018 transactions Nov. 3: Issued invoice # 220 for $ 8,000 sales on account to Wilson Ltd. Cost of this inventory was $4,500. Nov. 4: $ 20,000 Inventory was purchased on account from Dancing Shoes Ltd. The terms were 4/10, n/60. Nov. 5: Received $ 2,000 cash for selling inventory. Cost of this inventory was $ 1,200. Nov. 6: Purchased supplies for $ 3,300. It was paid by cheque # 330. Nov. 8: Received $ 7,000 interest revenue. Nov. 10: Issued invoice # 221 for $ 20,000 sales on account to Private Design Ltd. Cost of this inventory was $ 12,000. Nov. 11: Purchased $ 2,800 office furniture. It was paid by cheque # 331. Nov. 12: Received 7,840 from Wilson Ltd. in full settlement of its accounts receivable. Nov. 13: Paid Dancing Shoes Ltd. with cheques $332. Nov. 15: Purchased $ 9,000 inventory on account from Laces Ltd. The terms were 2/10, 1/60 Nov. 16: Issued invoice # 222 for $ 9,000 sales on account to Children's Wear Ltd. Cost of this inventory was $ 6,500. Nov. 17: Issued credit memo to Children's Wear Lid. for $9.000 for merchandise sent by mistake and was returned to Shoes Supreme. Also accounted for receipt of the inventory. Nov. 18: Issued invoice # 223 for $ 4,000 sales on account to Wilson Ltd. Cost of this inventory was S 2,800. Nov. 19: Received $ 19,600 from Private Design Ltd. in full settlement of its accounts receivable. Nov. 20: Purchased $ 10,000 inventory on account from Jones Ltd. The terms were net 30. Nov. 21: Purchased $ 22,000 brochures on account from Direct Printing Ltd. The terms were 2/10, 1/60. Advertising Expense was debited. . Nov, 22- Paid Radio Ltd. $ 30,000 with cheques # 333 to place radio ads to air the last week in December. Prepaid Advertising was debited. Nov. 23: Sold supplies to an employee for $ 100 cash, which was the cost of the supplies. Nov. 25: Paid S 300 telephone bill with cheques #334. ACCT 1211: Accounting AST Nov. 26: Purchased $ 15,000 inventory on account from Laces Ltd. The terms were 3/10, 11/30. Nov. 27: Returned defective inventory to Laces Ltd. Issued a debit memo for $2,000. Nov. 28 Issued invoice # 224 for $7.000 sales on account to Private Design Lid. Cost of this inventory was $5,400. Nov. 28: Received $ 3,920 from Wilson Ltd. in full settlement of its accounts receivable, Nov. 30: Paid $ 2,000 salary with cheques # 335. Required: A. Open Shoes Supremes' general ledger accounts using the following chart of account numbers provided 100 Cash Accounts Receivable Supplies Prepaid Advertising Inventory "Office Furniture Accounts Payable Sales Revenue Sales Discounts Sales Returns & Allowances Interest Revenue Cost of Goods Sold Salary Expense Advertising Expense Telephone Expense 410 420 430 500 510 140 $20 150 200 400 530 B. Open these accounts in the accounts receivable subsidiary ledger accounts: Private Design Lid., Children's Wear Ltd., and Wilson Ltd. Open these accounts in the accounts payable subsidiary ledger accounts: Dancing Shoes Ltd., Laces Lid., and Jones Ltd. C. Record the above November transactions in a sales journal (page 7), a cash receipts journal (page 4), a purchases journal (page 5), a cash payments journal (page 8), and a general journal (page 5). Ignore PST and GST. D. Post daily to the accounts receivable and accounts payable subsidiary ledgers. Post the individual amounts to the general ledger accounts on the date recorded in the journals. Post column journal totals to the general ledger accounts on November 30. E. Total the columns in the journals. Illustrate that the total debits equal the total credits in each journal. F. Balance/reconcile the accounts receivable subsidiary ledgers and the accounts receivable in the general ledger Balance/reconcile the accounts payable subsidiary ledgers and the accounts payable in the general ledger Question 5 (45 marks) A. and D General Ledger ACCOUNT NO. ACCOUNT DATE 2018 JRNL. REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL. REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF. DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF ITEM DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF. DEBIT CREDIT BALANCE Assignment ACCOUNT NO. ACCOUNT DATE 2018 JRNL. REF. DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL. REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO ACCOUNT DATE 2018 JRNL REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO ACCOUNT DATE 2018 ITEM JRNL. REF. DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF DERIT CREDIT BALANCE AZ ACCT 1211 Accounting ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNL REF. ITEM DEBIT CREDIT BALANCE ACCOUNT NO. ACCOUNT DATE 2018 JRNI REF. ITEM DEBIT CREDIT BALANCE ACCOUNT DATE 2018 JRNL. REF. ACCOUNT NO. CREDIT BALANCE ITEM DEBIT AB-B Assignment 6 B. and D Accounts Receivable Subsidiary Ledger ACCOUNT DATE 2018 JRNL REF. ITEM DEBIT CREDIT BALANCE ACCOUNT DATE 2018 JRNL. REF. TEM DEBIT CREDIT BALANCE ACCOUNT DATE 2018 JRNL. REF. DEBIT CREDIT BALANCE A6-9 ACCT 1211 Accounting Accounts Payable Subsidiary Ledger B. and D ACCOUNT DATE 2018 ITEM JRNL. REF. DEBIT CREDIT BALANCE ACCOUNT DATE 2018 JRNL. REF ITEM ITEM REF | DEBIT DEBIT CREDIT CREDIT BALANCE BALANCE ACCOUNT DATE 2018 JRNL. ITEM REF. DEBIT CREDIT BALANCE ACCOUNT DATE 2018 ITEM JRNL. REF. DEBIT CREDIT BALANCE ACCT 1211: Accounting PAGE 4 DEBITS Cash Receipts Journal CREDITS OTHER ACCOUNTS AMOUN DATE 2018 SALES DISCOUNTS CASH ACCOUNTS RECEIVABLE SALES REVENUE COST OF GOODS SOLD DR. INVENTORY CR POST REF. ACCOUNT TITLE 100) (410) (110) (400) (500/140) haser Tom Purchases Journal CREDITS PAGE 5 DEBITS OTHER ACCOUNTS ACCOUNT POST. SUPPLIES TITLE REF AMOUNT ACCOUNT CREDITED INVOICE DATE POST ACCOUNTS TERMS REF. PAYABLE INVENTORY 1 ELE ACOT 1211 A6-13 18 TO PAGE 8 CREDITS Cash Payments Journal DEBITS POST. OTHER ACCOUNTS ACCOUNTS DEBITED REF. ACCOUNTS PAYABLE