Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Watches World Ltd is registered for the GST . Special journals are used in its accounting systems. The following transactions - unless stated otherwise are

Watches World Ltd is registered for the GST. Special journals are used in its accounting systems. The following transactions - unless stated otherwise are GST exclusive - occurred during June, 2013. The credit term for all sales transactions is 1/10, n30.
June 4 Purchased silver watches inventory on account from Queen SilverArts Ltd, for $1,800; invoice #107, terms 210, n30.
7 Purchased watch inventory on account from SpyWatch Ltd, for $1,260; invoice # 687, terms 210,n30.
8 Received $330(GST inclusive) credit note from Queen SilverArts for silver watches returned.
8 Sold inventory on account to Max's Watch Ltd; invoice #125, for $2,000
9 Sold inventory on account to BayWatch Shop; invoice #126, for $3,420.
10 Paid the amount owed to Queen SilverArts Ltd, Cheque #001
15 Sold inventory on account to Max's Watch Ltd; invoice #127, for $2,970.
17 Max's Watch Ltd paid in full, the goods sold on 8 June.
18 Purchased inventory on account from DeeWatch; invoice #728, for $870, terms 210, n30.
The charts of accounts for the related accounts are:
Cash at Bank 100;
Accounts Payable, 220;
Purchases, 510;
GST Collected, 250;
Discount Allowed (Dis. All'd)610;
Accounts Receivable, 120;
Sales, 410 ;
Purchases Returns & Allowances, 530
GST Paid, 150;
Discount Received (Dis. Rec'd)450.
Required:
a. Enter the transactions for June in the appropriate journals, and perform the necessary procedures to indicate that you have completed the posting of the data from the Sales, Purchases and General Journals to the general ledger (you don't have to create the ledger accounts).
Example of the format to be used in exams
a. Special Journals & General Journals
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Strategy, Value And RiskThe Real Options Approach

Authors: J. Rogers

2nd Edition

0230577377, 9780230577374

More Books

Students also viewed these Accounting questions

Question

Explain the factors that determine the degree of decentralisation

Answered: 1 week ago

Question

What Is acidity?

Answered: 1 week ago

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago