Reference no: EM132772170
Problem 1: Record the following transactions in the appropriate module for the month of May.
May 1 Borrowed $20,000 from the bank and deposited the cash in the company's bank account immediately. (Source: Bank #1) Create a new liability account called Bank Loan Payable (2150).
May 1 Paid Rent Corporation May's rent of $250 plus GST using Cheque 513. Record this entry as a cash purchase invoice using the date as the invoice number.
May 4 Received purchase invoice 3442 from HOCKEY Company for the following:
5 Hockey Pants $90.00 each
10 Hockey Sticks $32.50 each
Freight $25.00
GST on all Terms net 30
May 9 Received a bank statement showing service charges of $21. Use Bank #2 as the source.
May 9 Received purchase invoice 3907 from HOCKEY Company for the following:
8 Hockey Pants $85.00 each
12 Hockey Sticks $30.00 each
Freight $10.00
GST on all Terms 2/15, net 30
May 10 Purchased $175.75 worth of office supplies plus GST and PST from Office Depot (Quick Add) on Invoice 4238. Paid with Cheque 514.
May 12 Issued sales invoice 100 to Sue's Centre:
3 Hockey Pants $125.00 each
6 Hockey Sticks $50.00 each
GST and PST Terms 3/10, net 30
May 12 Issued sales invoice 101 to Wally's Red Boxes:
1 Hockey Pants $135.00 each
1 Hockey Stick $55.00 each
GST and PST Terms net 20
May 15 Paid Julie Johnson a mid-month advance only, $550, using the next cheque. Julie is paid monthly so only the advance should be on this cheque with NO deductions. Paid Joe Craig 82 hours (two of which are over time)
May 16 Returned 1 pair of hockey pants to HOCKEY Company for credit which was originally purchased on May 4, Invoice 3442. They issued us CM895. (Not an adjustment but a separate entry)
May 21 Received the amount owing from Sue's Centre, Cheque 4512.
May 23 Paid HOCKEY Company the amount owing on Invoice 3907, using next cheque.
May 24 Adjust the inventory by 1 hockey stick which was found broken in the stockroom. (Source = Adjust 1)
May 31 Received Cheque 612 from Wally's Red Boxes in full payment of their account.
May 31 Issued the month-end paycheques using next available cheques.
Julie Johnson Salary less advance
Joe Craig 85 hours (five of which are over time)
May 31 You, the owner, withdrew $450 with the next available cheque. (Quick Add yourself).
May 31 The bank statement revealed that $34.75 interest was earned on your bank account during May. (Use Bank #3 as the source)