Q1 The Reading Warehouse distributes hardback books to retail stores and extends credit terms of 2/7, n/30 to all of its customers. During the month of June the following inventory transactions...

Q1
The Reading Warehouse distributes hardback books to retail stores and extends credit terms of 2/7, n/30 to all of its customers. During the month of June the following inventory transactions occu
ed.
    June 2
    
    Purchased 130 books on account for $6 each (including freight) from Reader's World Publishers, terms 1/7, n/30. Also made a cash payment to Classic Couriers of $60 for the freight on this date.
    3
    
    Sold 140 books on account to the Book Nook for $12 each.
    6
    
    10 books returned to Reader's World Publishers. Received $60 credit.
    9
    
    Paid Reader's World Publishers the amount owning.
    15
    
    Received payment in full from the Book Nook.
    17
    
    Sold 120 books on account to Read-A-Lot Bookstore for $12 each.
    20
    
    Purchased 120 books on account for $6 each from Read More Publishers, terms 2/7, n/30.
    24
    
    Received payment of account from Read-A-Lot Bookstore.
    26
    
    Paid Read More Publishers the amount owning.
    28
    
    Sold 110 books on account to Readers Bookstore for $12 each.
    30
    
    Granted Readers Bookstore $180 credit for 15 books returned costing $90. The books were returned to inventory.
Journalise the transactions for the month of June for Reading Warehouse, using a perpetual inventory system. Assume the cost of each book sold was $6. (For multiple debit/credit entries, list accounts in order of magnitude. Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all answers to 0 decimal places.)
    Date
    Particulars
    Debit
    Credit
    2 June
    
    
    
     
    
    
    
      
    (To record the purchase.) 
     
     
     
    
    
    
     
    
    
    
      
    (To record the cost of freight.) 
     
     
    3 June
    
    
    
     
    
    
    
      
    (To record the sale.)
      
     
     
    
    
    
     
    
    
    
      
    (To record the cost of inventory.)
      
     
    6 June
    
    
    
     
    
    
    
    9 June
    
    
    
      
    
     
    
     
    
     
    
    15 June
    
    
    
     
    
    
    
    17 June
    
    
    
      
    
    
    
      
    (To record the sale.)
      
     
      
    
    
    
     
    
    
    
      
    (To record the cost of inventory.)
      
     
    20 June
    
    
    
     
    
    
    
    24 June
    
    
    
       
    
    
    
     
    
    
    
    26 June
    
    
    
     
    
    
    
     
    
    
    
    28 June
    
    
    
     
    
    
    
      
    (To record the sale.)
     
     
     
    
    
    
     
    
    
    
      
    (To record the cost of inventory.)
     
     
    30 June
    
    
    
     
    
     
    
     
    (To record the credit for returned inventory.)
     
     
     
    
    
    
     
    
    
    
      
    (To record the inventory returned.) 
     
     
Q2
            Question 2
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 $28,800 cash and $16,800 office equipment into the business.
    July 2
    
    Purchased inventory from L Cao on account for $7,200 plus GST; terms 2/15, n/30. Paid July rental of $2,880 plus GST; by inte
ank transfer to Prime Properties Ltd.
    July 3
    
    Purchased inventory from Difabio Ltd on account for $5,840 plus GST; terms n/30.
    July 6
    
    Sold inventory to J Ellis on account for $1,600 plus GST; terms 2/15, n/30.
    July 7
    
    Received July rental of $720 plus GST for space sublet to Perth Services.
    July 8
    
    Purchased stationery supplies for $1,600 plus GST; cheque no. 124.
    July 10
    
    Purchased inventory for cash $1,580 plus GST.
    July 13
    
    Sold inventory to Giola Ltd on account for $3,600 plus GST; terms 2/10, n/30.
    July 14
    
    Purchased inventory from O Hee on account for $4,800 plus GST; terms 2/10, n/30.
    July 15
    
    Paid L Cao for 2 July purchase with an inte
ank transfer.
    July 19
    
    Received $1,725 from J Ellis in payment of her account.
Sold inventory to O Kaddish on account for $3,680 plus GST; terms 2/10, n/30.
    July 21
    
    Received $3,881 from Giola Ltd in payment of its account.
Sold inventory to Modra Ltd on account for $2,880 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 $4,400 plus GST; terms 2/15, n/30.
    July 26
    
    Sold inventory for cash, $2,320 plus GST.
    July 28
    
    Returned defective inventory that cost $960 to L Cao.
    July 29
    
    Sold merchandise to I Nizic on account for $6,560 plus GST; terms 2/10, n/30.
    July 30
    
    Purchased merchandise from A Romeo on account for $1,440 plus GST; terms 1/10, n/30.
Paid month's salary of office assistant, $2,560 by inte
ank transfer.
    
    
    
    
            
A.
Prepare journal entries for July 2016, using appropriate journals. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
    Cash receipts journal
    
    
    
    Debits
    Credits
    Date
    Account
    Post 
ef.
    Cash at bank
    Disc. all'd
    GST collect
    Sales
    GST collect
    A/cs. rec'able
    Other a/cs.
    2016
    
    
    
    
    
    
    
    
    
    July 1
    
    
    
    
    
    
    
    
    
    July 7
    
    
    
    
    
    
    
    
    
    July 19
    
    √
    
    
    
    
    
    
    
    July 21
    
    √
    
    
    
    
    
    
    
    July 26
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cash payments journal
    Date
    Account
    Ch. 
no.
    Post 
ef.
    Othe
    Acc/s payable
    Purchases
    GST rec'able
    Cash at bank
    Disc. rec'd
    GST receivable
    2016
    
    
    
    
    
    
    
    
    
    
    July 2
    
    BPay
    
    
    
    
    
    
    
    
    July 8
    
    124
    
    
    
    
    
    
    
    
    July 10
    
    —
    
    
    
    
    
    
    
    
    July 15
    
    BPay
    √
    
    
    
    
    
    
    
    July 22
    
    125
    √
    
    
    
    
    
    
    
    July 30
    
    Trf
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    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
    √