Below are selected transactions of Diya Automotive Company during 2022. Aug. 1 Diya Automotive Company bought $9,200 of merchandise inventory, a new factory machine for $2,600 and office supplies for $800 from a supplier. (All plus HST of 13% on account). Aug. 15 Diya returned $1,000 of the merchandise inventory to the supplier. Sept. 1 Diya sold merchandise inventory costing $750 for $1,300 (plus HST of 13%) to Lily Peng on account. Sept. 15 Lily Peng returned $300 from the Sept.1 sale. The cost of the returned items was $150 and they were returned to inventory. Oct. 1 Diya purchased $1,200 of office equipment (plus HST of 13%) from Staples on account. Prepare all the necessary journal entries for the above transactions. Assume that Diya Automotive Company uses a perpetual inventory system and an HST rate of 13%.
Below are selected transactions of Diya Automotive Company during 2022. Aug. 1 Diya Automotive Company bought $9,200 of merchandise inventory, a new factory machine for $2,600 and office supplies for $800 from a supplier. (All plus HST of 13% on account). Aug. 15 Diya returned $1,000 of the merchandise inventory to the supplier. Sept. 1 Diya sold merchandise inventory costing $750 for $1,300 (plus HST of 13%) to Lily Peng on account. Sept. 15 Lily Peng returned $300 from the Sept.1 sale. The cost of the returned items was $150 and they were returned to inventory. Oct. 1 Diya purchased $1,200 of office equipment (plus HST of 13%) from Staples on account. Prepare all the necessary journal entries for the above transactions. Assume that Diya Automotive Company uses a perpetual inventory system and an HST rate of 13%.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 14E: On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a...
Related questions
Question
Below are selected transactions of Diya Automotive Company during 2022.
Aug. 1 Diya Automotive Company bought $9,200 of merchandise inventory, a new factory machine for $2,600 and office supplies for $800 from a supplier. (All plus HST of 13% on account).
Aug. 15 Diya returned $1,000 of the merchandise inventory to the supplier.
Sept. 1 Diya sold merchandise inventory costing $750 for $1,300 (plus HST of 13%) to Lily Peng on account.
Sept. 15 Lily Peng returned $300 from the Sept.1 sale. The cost of the returned items was $150 and they were returned to inventory.
Oct. 1 Diya purchased $1,200 of office equipment (plus HST of 13%) from Staples on account.
Prepare all the necessary
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College