Kim ran a small business where she sold refurbished furniture. The following events occurred during the month: a) On April 2, 2022, Kim sold 15 gift cards with a value of $20 each. No GST was charged on the sale. b) On May 1, 2022, Kim sold a refurbished chair with a sale price of $40, plus 5% GST for a total transaction price of $42. The customer paid with a $20 gift card and the remaining in cash, Required: Record the required journal entries for both a) and b) above.
Kim ran a small business where she sold refurbished furniture. The following events occurred during the month: a) On April 2, 2022, Kim sold 15 gift cards with a value of $20 each. No GST was charged on the sale. b) On May 1, 2022, Kim sold a refurbished chair with a sale price of $40, plus 5% GST for a total transaction price of $42. The customer paid with a $20 gift card and the remaining in cash, Required: Record the required journal entries for both a) and b) above.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:Kim ran a small business where she sold refurbished furniture. The following events occurred during
the month:
a) On April 2, 2022. Kim sold 15 gift cards with a value of $20 each. No GST was charged on the sale.
b) On May 1, 2022, Kim sold a refurbished chair with a sale price of $40, plus 5% GST for a total
transaction price of $42. The customer paid with a $20 gift card and the remaining in cash.
Required:
Record the required journal entries for both a) and b) above.
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