Chee Yong Chaw began his business on 1 July 2016. The business balances its books at month-end and uses special journals and the periodic inventory system. Transactions for July 2016 were as follows: July 1 Chee Yong Chaw invested $ 30,240 cash and $ 17,640 office equipment into the business. July 2 Purchased inventory from L Cao on account for $ 7,560 plus GST; terms 2/15, n/30. Paid July rental of $ 3,020 plus GST; by interbank transfer to Prime Properties Ltd. July 3 Purchased inventory from Difabio Ltd on account for $ 6,130 plus GST; terms n/30. July 6 Sold inventory to J Ellis on account for $ 1,680 plus GST; terms 2/15, n/30. July 7 Received July rental of $ 760 plus GST for space sublet to Perth Services. July 8 Purchased stationery supplies for $ 1,680 plus GST; cheque no. 124. July 10 Purchased inventory for cash $ 1,660 plus GST. July 13 Sold inventory to Giola Ltd on account for $ 3,780 plus GST; terms 2/10, n/30. July 14 Purchased inventory from O Hee on account for $ 5,040 plus GST; terms 2/10, n/30. July 15 Paid L Cao for 2 July purchase with an interbank transfer. July 19 Received $ 1,811 from J Ellis in payment of her account. Sold inventory to O Kaddish on account for $ 3,860 plus GST; terms 2/10, n/30. July 21 Received $ 4,075 from Giola Ltd in payment of its account. Sold inventory to Modra Ltd on account for $ 3,020 plus GST; terms 2/10, n/30. July 22 Paid O Hee for 14 July purchase; cheque no. 125. July 23 Purchased inventory from L Cao on account for $ 4,620 plus GST; terms 2/15, n/30. July 26 Sold inventory for cash, $ 2,440 plus GST. July 28 Returned defective inventory that cost $ 1,010 to L Cao. July 29 Sold merchandise to I Nizic on account for $ 6,890 plus GST; terms 2/10, n/30. July 30 Purchased merchandise from A Romeo on account for $ 1,510 plus GST; terms 1/10, n/30. Paid month's salary of office assistant, $ 2,690 by interbank transfer. Prepare journal entries for July 2016, using appropriate journals. （cash receipt cash payments General journal Purchases journal and sales journal） General journal Date 2016 Particulars Debit Credit July 1 (Equipment contributed by owner) July 28 (Return of defective goods) Purchases journal Date Account Terms Post ref. Purchases GST Receivable Accounts Payable 2016 July 2 2/15, n/30 √ July 3 n/30 √ July 14 2/10, n/30 √ July 23 2/15, n/30 √ July 30 1/10, n/30 √ Sales journal Date Account Terms Post ref. Sales GST payable Accounts receivable 2016 July 6 2/15, n/30 √ July 13 2/10, n/30 √ July 19 2/10, n/30 √ July 21 2/10, n/30 √ July 29 2/10, n/30 √

Chee Yong Chaw began his business on 1 July 2016. The business balances its books at month-end and uses special journals and the periodic inventory system. Transactions for July 2016 were as follows: July 1 Chee Yong Chaw invested $ 30,240 cash and $ 17,640 office equipment into the business. July 2 Purchased inventory from L Cao on account for $ 7,560 plus GST; terms 2/15, n/30. Paid July rental of $ 3,020 plus GST; by interbank transfer to Prime Properties Ltd. July 3 Purchased inventory from Difabio Ltd on account for $ 6,130 plus GST; terms n/30. July 6 Sold inventory to J Ellis on account for $ 1,680 plus GST; terms 2/15, n/30. July 7 Received July rental of $ 760 plus GST for space sublet to Perth Services. July 8 Purchased stationery supplies for $ 1,680 plus GST; cheque no. 124. July 10 Purchased inventory for cash $ 1,660 plus GST. July 13 Sold inventory to Giola Ltd on account for $ 3,780 plus GST; terms 2/10, n/30. July 14 Purchased inventory from O Hee on account for $ 5,040 plus GST; terms 2/10, n/30. July 15 Paid L Cao for 2 July purchase with an interbank transfer. July 19 Received $ 1,811 from J Ellis in payment of her account. Sold inventory to O Kaddish on account for $ 3,860 plus GST; terms 2/10, n/30. July 21 Received $ 4,075 from Giola Ltd in payment of its account. Sold inventory to Modra Ltd on account for $ 3,020 plus GST; terms 2/10, n/30. July 22 Paid O Hee for 14 July purchase; cheque no. 125. July 23 Purchased inventory from L Cao on account for $ 4,620 plus GST; terms 2/15, n/30. July 26 Sold inventory for cash, $ 2,440 plus GST. July 28 Returned defective inventory that cost $ 1,010 to L Cao. July 29 Sold merchandise to I Nizic on account for $ 6,890 plus GST; terms 2/10, n/30. July 30 Purchased merchandise from A Romeo on account for $ 1,510 plus GST; terms 1/10, n/30. Paid month's salary of office assistant, $ 2,690 by interbank transfer. Prepare journal entries for July 2016, using appropriate journals. （cash receipt cash payments General journal Purchases journal and sales journal） General journal Date 2016 Particulars Debit Credit July 1 (Equipment contributed by owner) July 28 (Return of defective goods) Purchases journal Date Account Terms Post ref. Purchases GST Receivable Accounts Payable 2016 July 2 2/15, n/30 √ July 3 n/30 √ July 14 2/10, n/30 √ July 23 2/15, n/30 √ July 30 1/10, n/30 √ Sales journal Date Account Terms Post ref. Sales GST payable Accounts receivable 2016 July 6 2/15, n/30 √ July 13 2/10, n/30 √ July 19 2/10, n/30 √ July 21 2/10, n/30 √ July 29 2/10, n/30 √

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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Question

Chee Yong Chaw began his business on 1 July 2016. The business balances its books at month-end and uses special journals and the periodic inventory system. Transactions for July 2016 were as follows:

July 1		Chee Yong Chaw invested $ 30,240 cash and $ 17,640 office equipment into the business.
July 2		Purchased inventory from L Cao on account for $ 7,560 plus GST; terms 2/15, n/30. Paid July rental of $ 3,020 plus GST; by interbank transfer to Prime Properties Ltd.
July 3		Purchased inventory from Difabio Ltd on account for $ 6,130 plus GST; terms n/30.
July 6		Sold inventory to J Ellis on account for $ 1,680 plus GST; terms 2/15, n/30.
July 7		Received July rental of $ 760 plus GST for space sublet to Perth Services.
July 8		Purchased stationery supplies for $ 1,680 plus GST; cheque no. 124.
July 10		Purchased inventory for cash $ 1,660 plus GST.
July 13		Sold inventory to Giola Ltd on account for $ 3,780 plus GST; terms 2/10, n/30.
July 14		Purchased inventory from O Hee on account for $ 5,040 plus GST; terms 2/10, n/30.
July 15		Paid L Cao for 2 July purchase with an interbank transfer.
July 19		Received $ 1,811 from J Ellis in payment of her account. Sold inventory to O Kaddish on account for $ 3,860 plus GST; terms 2/10, n/30.
July 21		Received $ 4,075 from Giola Ltd in payment of its account. Sold inventory to Modra Ltd on account for $ 3,020 plus GST; terms 2/10, n/30.
July 22		Paid O Hee for 14 July purchase; cheque no. 125.
July 23		Purchased inventory from L Cao on account for $ 4,620 plus GST; terms 2/15, n/30.
July 26		Sold inventory for cash, $ 2,440 plus GST.
July 28		Returned defective inventory that cost $ 1,010 to L Cao.
July 29		Sold merchandise to I Nizic on account for $ 6,890 plus GST; terms 2/10, n/30.
July 30		Purchased merchandise from A Romeo on account for $ 1,510 plus GST; terms 1/10, n/30. Paid month's salary of office assistant, $ 2,690 by interbank transfer.

Prepare journal entries for July 2016, using appropriate journals. （cash receipt cash payments General journal Purchases journal and sales journal）

General journal
Date 2016	Particulars	Debit	Credit
July 1

	(Equipment contributed by owner)
July 28


	(Return of defective goods)

Purchases journal
Date	Account	Terms	Post ref.	Purchases	GST Receivable	Accounts Payable
2016
July 2		2/15, n/30	√
July 3		n/30	√
July 14		2/10, n/30	√
July 23		2/15, n/30	√
July 30		1/10, n/30	√

Sales journal
Date	Account	Terms	Post ref.	Sales	GST payable	Accounts receivable
2016
July 6		2/15, n/30	√
July 13		2/10, n/30	√
July 19		2/10, n/30	√
July 21		2/10, n/30	√
July 29		2/10, n/30	√

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