2. MSS Company sells Japanese comics books. On 1 January 2021, a customer, Jupiter Co., owed MSS Company $400. During the month of January 2021, MSS Company made the following transactions. 2021 Jan Jupiter Co. bought goods on credit from MSS Company with a list price of $2 600, less a 3% trade discount. ut 11 MSS Company sold goods $9 000 to Uranus Co. on credit. 15 Jupiter Co. returned some of the goods purchased on 5 January 2021. List price of those goods amounted to $600. 18 MSS Company sold books $5 000 to Jupiter Co. immediately. Cash was received MSS Company received 10 books from Uranus Co. as they were delivered wrongly. Cost of each book was $45. 27 MSS Company received a purchase order from Venus Co. for $7 000 books. Issued sales invoice to Mercury Co. Goods of $3 800 were delivered to Mercury Co. on the same day. It was agreed to settle the amount on 14 February 2021. 30 Required: (a) Prepare the sales journal of January 2021. (b) Prepare Jupiter Co. account in the sales ledger of January 2021. Balance off the account at month end (c) Prepare all the necessary accounts in the general ledger of January 2021. Balance off the accounts is not required 20

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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MSS Company sells Japanese comics books. On 1 January 2021, a customer, Jupiter Co.,
owed MSS Company $400. During the month of January 2021, MSS Company made the
following transactions.
2021
Jan
Jupiter Co. bought goods on credit from MSS Company with a list price of
$2 600, less a 3% trade discount.
ut
11
MSS Company sold goods $9 000 to Uranus Co. on credit.
X5
Jupiter Co. returned some of the goods purchased on 5 January 2021. List price
of those goods amounted to $600.
MSS Company sold books $5 000 to Jupiter Co.
immediately.
18
Cash was received
20
MSS Company received 10 books from Uranus Co. as they were delivered
wrongly. Cost of each book was $45.
27
MSS Company received a purchase order from Venus Co. for $7 000 books.
Issued sales invoice to Mercury Co. Goods of $3 800 were delivered to
Mercury Co. on the same day. It was agreed to settle the amount on
14 February 2021.
30
Required:
(a)
Prepare the sales journal of January 2021.
(b)
Prepare Jupiter Co. account in the sales ledger of January 2021. Balance off the account at
month end
(c)
Prepare all the necessary accounts in the general ledger of January 2021. Balance off the
accounts is not required
2.
Transcribed Image Text:MSS Company sells Japanese comics books. On 1 January 2021, a customer, Jupiter Co., owed MSS Company $400. During the month of January 2021, MSS Company made the following transactions. 2021 Jan Jupiter Co. bought goods on credit from MSS Company with a list price of $2 600, less a 3% trade discount. ut 11 MSS Company sold goods $9 000 to Uranus Co. on credit. X5 Jupiter Co. returned some of the goods purchased on 5 January 2021. List price of those goods amounted to $600. MSS Company sold books $5 000 to Jupiter Co. immediately. 18 Cash was received 20 MSS Company received 10 books from Uranus Co. as they were delivered wrongly. Cost of each book was $45. 27 MSS Company received a purchase order from Venus Co. for $7 000 books. Issued sales invoice to Mercury Co. Goods of $3 800 were delivered to Mercury Co. on the same day. It was agreed to settle the amount on 14 February 2021. 30 Required: (a) Prepare the sales journal of January 2021. (b) Prepare Jupiter Co. account in the sales ledger of January 2021. Balance off the account at month end (c) Prepare all the necessary accounts in the general ledger of January 2021. Balance off the accounts is not required 2.
Mary operates a famous company in Canada, selling down jackets. She is planning to establish
branches in Hong Kong. A business consultant suggests her to operate these branches with
different business owners but in a similar way to that of Mary's shops in Canada.
Required:
(a) Identify the form of ownership suggested by the business consultant.
(b)
Apart from more sources of capital, explain two reasons why Mary should establish the
branches in the form of business ownership in (a) above instead of setting up branches in
Hong Kong on her own.
(c) Explain one measure in product development that Mary can ensure her firm is socially
responsible.
Transcribed Image Text:Mary operates a famous company in Canada, selling down jackets. She is planning to establish branches in Hong Kong. A business consultant suggests her to operate these branches with different business owners but in a similar way to that of Mary's shops in Canada. Required: (a) Identify the form of ownership suggested by the business consultant. (b) Apart from more sources of capital, explain two reasons why Mary should establish the branches in the form of business ownership in (a) above instead of setting up branches in Hong Kong on her own. (c) Explain one measure in product development that Mary can ensure her firm is socially responsible.
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