Mark's Music is a store that buys and sells musical instruments in Ontario, where the HST rate is 13%. Mark's Music us
Mark's Music is a store that buys and sells musical instruments in Ontario, where the HST rate is 13%. Mark's Music uses a perpetual inventory system. Transactions for the business are shown below:
Nov. 2 Purchased three electric guitars from Fender Supply Limited, on account, at a cost of $900 each.
4 Made a cash sale of two keyboards for a total invoice price of $2,600, plus applicable taxes. The cost of each keyboard was $675.
5 Received a credit memorandum from Western Acoustic Inc. for the return of an acoustic guitar that was defective. The original invoice price before taxes was $700 and the guitar had been purchased on account. Mark's Music intends to return the defective guitar to the original supplier.
7 One of the keyboards from the cash sale of November 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument. The keyboard was returned to inventory.
8 Purchased supplies from a stationery store. The price of the supplies is $200 before all applicable taxes.
10 Sold one Omega trumpet to Regional Band, on account, for an invoice price of $5,100 before applicable taxes. The trumpet had cost Mark's Music $2,850.
13 Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $1,900 for each saxophone, excluding applicable taxes.
14 Collected $4,150 on account. The payment included all applicable taxes.
16 Returned to Yamaha Canada Inc. one of the saxophones purchased on November 13, as it was the wrong model. Received a credit memorandum from Yamaha for the full purchase price.
20 Made a payment on account for the amount owing to Fender Supply Limited for the purchase of November 2.
Prepare the journal entries to record the Mark's Music transactions?