ONTARIO TAX CUISINE HEALTH PLUS INC. is a young company working in the sale of recipe books and kitchen items. Its owner
Posted: Sat Feb 19, 2022 2:32 pm
ONTARIO TAX
CUISINE HEALTH PLUS INC. is a young company working in the sale
of recipe books and kitchen items. Its owner, M Gourmet, is a
world-renowned French chef with a passion for fine cuisine. The
company uses a periodic inventory system for accounting for its
inventory of goods.
Here are its subsidiary ledger balances as of July 31, 2021:
Subsidiary Supplier Ledger
Boivin Printing 33,370.00
Mangedeboncoeur and Sons. 54,120.00
DAlcan Ltd. 30,810.00
Gargantua Inc 23,000.00
Bardet Mario Inc. 42,100.00
Total 183,400.00
You will find below the various operations carried out by this
company during the month of August 2021.
N.B. All amounts shown are BEFORE Harmonized Sales Tax, unless
otherwise indicated.
August 1 Issuance of a $5,000 check payable to La Cité for the
payment of tuition fees for the owner’s son.
2 Cash purchase of office supplies for $3,500, tax included, at
Bureautik Inc.
2 Payment by check of the balance of the monthly telecommunications
bill of $225 plus taxes (Téléco Inc)
3 Purchase of cookbooks on credit for $5,400 from Bardet Mario Inc.
Conditions 2/10, 1/15, n/30.
.
4 Return of 2 cases of kitchen items worth $1620 to Bardet Mario
Inc. A credit note was issued
5 Purchase on credit of a cookbook for $15,600 at
Mangedeboncoeur et Fils c. (payment terms, /30).
6 Purchase of cookbooks on credit at Bric à Brac for $1,470.
(Payment terms: 3/10, 1/15, n/30).
7 Return of damaged items worth $520 to Bric a Brac. A credit
note has been issued.
8 $1300 cash purchase of cooking magazines from Guargantua
Inc.
9 Purchase of a truck from Ford Orléans valued at $35,000. A
deposit of $15,000 is made at the time of purchase and the balance
is financed by a bank loan maturing in 5 years and bearing interest
at an annual rate of 8%.
14 Payment of the balance due to Bric à Brac.
15 Withdrawal by the financial institution of a sum of $7,500
for semi-monthly salaries deposited directly in employees' bank
accounts.
16 Payment of the balance due to DAlcan Ltée. The balance
represents an invoice dated July 26, 2021 (payment terms 1/10,
n/30).
18 Notice of debit of 400 received from Sogebank, relating to
interest charges on the bank loan during the acquisition of the
truck. 22
25 Partial payment of $17,000 of the balance due to Imprimerie
Boivin. (payment terms, /30).
30 August 16 Withdrawal by the financial institution of the sum of
$7,500 for semi-monthly salaries deposited directly into employee
bank accounts.
Work to do:
a) Record all transactions for the month of August 2021 in the
appropriate sub-journals and post to the Accounts Payable
sub-ledgers when necessary.
CUISINE HEALTH PLUS INC. is a young company working in the sale
of recipe books and kitchen items. Its owner, M Gourmet, is a
world-renowned French chef with a passion for fine cuisine. The
company uses a periodic inventory system for accounting for its
inventory of goods.
Here are its subsidiary ledger balances as of July 31, 2021:
Subsidiary Supplier Ledger
Boivin Printing 33,370.00
Mangedeboncoeur and Sons. 54,120.00
DAlcan Ltd. 30,810.00
Gargantua Inc 23,000.00
Bardet Mario Inc. 42,100.00
Total 183,400.00
You will find below the various operations carried out by this
company during the month of August 2021.
N.B. All amounts shown are BEFORE Harmonized Sales Tax, unless
otherwise indicated.
August 1 Issuance of a $5,000 check payable to La Cité for the
payment of tuition fees for the owner’s son.
2 Cash purchase of office supplies for $3,500, tax included, at
Bureautik Inc.
2 Payment by check of the balance of the monthly telecommunications
bill of $225 plus taxes (Téléco Inc)
3 Purchase of cookbooks on credit for $5,400 from Bardet Mario Inc.
Conditions 2/10, 1/15, n/30.
.
4 Return of 2 cases of kitchen items worth $1620 to Bardet Mario
Inc. A credit note was issued
5 Purchase on credit of a cookbook for $15,600 at
Mangedeboncoeur et Fils c. (payment terms, /30).
6 Purchase of cookbooks on credit at Bric à Brac for $1,470.
(Payment terms: 3/10, 1/15, n/30).
7 Return of damaged items worth $520 to Bric a Brac. A credit
note has been issued.
8 $1300 cash purchase of cooking magazines from Guargantua
Inc.
9 Purchase of a truck from Ford Orléans valued at $35,000. A
deposit of $15,000 is made at the time of purchase and the balance
is financed by a bank loan maturing in 5 years and bearing interest
at an annual rate of 8%.
14 Payment of the balance due to Bric à Brac.
15 Withdrawal by the financial institution of a sum of $7,500
for semi-monthly salaries deposited directly in employees' bank
accounts.
16 Payment of the balance due to DAlcan Ltée. The balance
represents an invoice dated July 26, 2021 (payment terms 1/10,
n/30).
18 Notice of debit of 400 received from Sogebank, relating to
interest charges on the bank loan during the acquisition of the
truck. 22
25 Partial payment of $17,000 of the balance due to Imprimerie
Boivin. (payment terms, /30).
30 August 16 Withdrawal by the financial institution of the sum of
$7,500 for semi-monthly salaries deposited directly into employee
bank accounts.
Work to do:
a) Record all transactions for the month of August 2021 in the
appropriate sub-journals and post to the Accounts Payable
sub-ledgers when necessary.