William's Music is a store that buys and sells musical instruments and uses a periodic inventory system. Transactions for the business are shown below: Nov. 2 4 5 7 8 10 12 13 16 20 22 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $900 each, terms 1/10, n/60. Made a cash sale of two keyboards for a total invoice price of $2,300. The cost of each keyboard was $900. Received a credit from Western Acoustic Inc. for the return of an acoustic guitar, which was defective. The original invoice price was $450 and the guitar had been purchased on account. One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument. Purchased store supplies for cash from a stationery store. The price of the supplies is $225. Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,700. Terms are 1/10, n/60. The trumpet had cost William's Music $1,420. Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov. 2. Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $2,500 for each saxophone. Terms are 1/10, n/30. Returned to Yamaha Canada Inc. one of the saxophones purchased on Nov. 13, as it was the wrong model. Received a credit from Yamaha for the full purchase price. Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov. 10. Paid balance owing to Yamaha Canada Inc.
William's Music is a store that buys and sells musical instruments and uses a periodic inventory system. Transactions for the business are shown below: Nov. 2 4 5 7 8 10 12 13 16 20 22 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $900 each, terms 1/10, n/60. Made a cash sale of two keyboards for a total invoice price of $2,300. The cost of each keyboard was $900. Received a credit from Western Acoustic Inc. for the return of an acoustic guitar, which was defective. The original invoice price was $450 and the guitar had been purchased on account. One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument. Purchased store supplies for cash from a stationery store. The price of the supplies is $225. Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,700. Terms are 1/10, n/60. The trumpet had cost William's Music $1,420. Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov. 2. Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $2,500 for each saxophone. Terms are 1/10, n/30. Returned to Yamaha Canada Inc. one of the saxophones purchased on Nov. 13, as it was the wrong model. Received a credit from Yamaha for the full purchase price. Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov. 10. Paid balance owing to Yamaha Canada Inc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the journal entries to record the William's Music transactions assuming the company uses the earnings approach to recognize revenue.
Transcribed Image Text:William's Music is a store that buys and sells musical instruments and uses a periodic inventory system. Transactions for
the business are shown below:
Nov. 2
4
5
7
8
10
12
13
16
20
22
Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $900 each, terms 1/10,
n/60.
Made a cash sale of two keyboards for a total invoice price of $2,300. The cost of each keyboard was $900.
Received a credit from Western Acoustic Inc. for the return of an acoustic guitar, which was defective. The
original invoice price was $450 and the guitar had been purchased on account.
One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because
the customer was not satisfied with the instrument.
Purchased store supplies for cash from a stationery store. The price of the supplies is $225.
Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,700. Terms
are 1/10, n/60. The trumpet had cost William's Music $1,420.
Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov. 2.
Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $2,500 for each
saxophone. Terms are 1/10, n/30.
Returned to Yamaha Canada Inc. one of the saxophones purchased on Nov. 13, as it was the wrong model.
Received a credit from Yamaha for the full purchase price.
Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov.
10.
Paid balance owing to Yamaha Canada Inc.
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