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ccount, to Monie Cafe. Terms: 3/10, n/30. Paid freight cost of $140 (plus 10% GST). chairs originally purchased on 4 July and paid the amount due to Cronin Traders on the chairs retal Cafe, returned 4 of the chairs sold back on the 6 July. The chairs were not defective and were put b from the customer, Monie Cafe, for the amount that was due on the 6 July sale. tions that have occurred in the month of July, 2021 during the above-mentioned dates, selec able (allow for rounding off to the nearest $ dollar Gibson Pty Ltd figures that it includes in it

ccount, to Monie Cafe. Terms: 3/10, n/30. Paid freight cost of $140 (plus 10% GST). chairs originally purchased on 4 July and paid the amount due to Cronin Traders on the chairs retal Cafe, returned 4 of the chairs sold back on the 6 July. The chairs were not defective and were put b from the customer, Monie Cafe, for the amount that was due on the 6 July sale. tions that have occurred in the month of July, 2021 during the above-mentioned dates, selec able (allow for rounding off to the nearest $ dollar Gibson Pty Ltd figures that it includes in it

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gibson Pty Ltd buys new chairs for $100 each (plus 10% GST) and then sells them for $160 each (plus 10% GST). On 1 July, 2021 there were a total of 36 chairs still on hand in Inventory. Gibson Pty Ltd completed the following transactions during July, 2021. The business is registered for GST purposes and uses a Perpetual Inventory system. July 4 Purchased 70 chairs on account, from Cronin Traders. Terms: 2/10, n/30. Additionally, the business paid Freight Cost of $288 (plus 10% GST) on the same 4 July purchase. Sold 53 chairs on account, to Monie Cafe. Terms: 3/10, n/30. Paid freight cost of $140 (plus 10% GST). Returned 13 of the chairs originally purchased on 4 July and paid the amount due to Cronin Traders on the chairs retained in stock. A customer, Monie Cafe, returned 4 of the chairs sold back on the 6 July. The chairs were not defective and were put back in stock. Received payment from the customer, Monie Cafe, for the amount that was due on the 6 July sale. 6 8 10 15 With respect to the transactions that have occurred in the month of July, 2021 during the above-mentioned dates, select the correct Journal entry from the following alternatives available (allow for rounding off to the nearest $ dollar Gibson Pty Ltd figures that includes in its Journal entries). Journal entries for July 6 a. Debit Sales 8 480 Debit GST Collections 848 Credit - Accounts Receivable Debit Cost of Sales 5 300 Credit - Inventory 5 300 Debit - Freight Outward 140 Debit-GST Outlays 14 Credit -Cash At Bank 154 9 328
Transcribed Image Text:Gibson Pty Ltd buys new chairs for $100 each (plus 10% GST) and then sells them for $160 each (plus 10% GST). On 1 July, 2021 there were a total of 36 chairs still on hand in Inventory. Gibson Pty Ltd completed the following transactions during July, 2021. The business is registered for GST purposes and uses a Perpetual Inventory system. July 4 Purchased 70 chairs on account, from Cronin Traders. Terms: 2/10, n/30. Additionally, the business paid Freight Cost of $288 (plus 10% GST) on the same 4 July purchase. Sold 53 chairs on account, to Monie Cafe. Terms: 3/10, n/30. Paid freight cost of $140 (plus 10% GST). Returned 13 of the chairs originally purchased on 4 July and paid the amount due to Cronin Traders on the chairs retained in stock. A customer, Monie Cafe, returned 4 of the chairs sold back on the 6 July. The chairs were not defective and were put back in stock. Received payment from the customer, Monie Cafe, for the amount that was due on the 6 July sale. 6 8 10 15 With respect to the transactions that have occurred in the month of July, 2021 during the above-mentioned dates, select the correct Journal entry from the following alternatives available (allow for rounding off to the nearest $ dollar Gibson Pty Ltd figures that includes in its Journal entries). Journal entries for July 6 a. Debit Sales 8 480 Debit GST Collections 848 Credit - Accounts Receivable Debit Cost of Sales 5 300 Credit - Inventory 5 300 Debit - Freight Outward 140 Debit-GST Outlays 14 Credit -Cash At Bank 154 9 328
b. Debit - Accounts Receivable Credit - GST Collections 848 Credit - Sales 8 480 Debit-Inventory 5 300 Credit-Cost of Sales 5 300 Debit - Freight Outward 140 Debit - GST Outlays 14 Credit-Cash At Bank 154 OC. Debit - Accounts Receivable 9 328 Credit - Sales 8 480 Credit - GST Collections 848 Debit - Cost of Sales Credit - Inventory Debit - Freight Outward Debit-GST Outlays Credit - Cash At Bank 5 300 5 300 d. Debit - Accounts Receivable Credit - GST Collections 848 Credit - Sales 8 480 Oe. None of the above. 14 154 Debit - Inventory 5 300 Credit - Cost of Sales 5 300 140 Debit-Cash At Bank 154 Credit - Freight Outward 140 Credit - GST Outlays 14 9 328 9 328
Transcribed Image Text:b. Debit - Accounts Receivable Credit - GST Collections 848 Credit - Sales 8 480 Debit-Inventory 5 300 Credit-Cost of Sales 5 300 Debit - Freight Outward 140 Debit - GST Outlays 14 Credit-Cash At Bank 154 OC. Debit - Accounts Receivable 9 328 Credit - Sales 8 480 Credit - GST Collections 848 Debit - Cost of Sales Credit - Inventory Debit - Freight Outward Debit-GST Outlays Credit - Cash At Bank 5 300 5 300 d. Debit - Accounts Receivable Credit - GST Collections 848 Credit - Sales 8 480 Oe. None of the above. 14 154 Debit - Inventory 5 300 Credit - Cost of Sales 5 300 140 Debit-Cash At Bank 154 Credit - Freight Outward 140 Credit - GST Outlays 14 9 328 9 328
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