City Retailers Inc. was incorporated on March 1, 2016 to operate a merchandizing business. All its sales on account are made according to the following terms: 2/10, n30.
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Mar. |
1 |
Issued share capital for $10,000 cash to Michael Smith, the incorporator and sole shareholder of the corporation |
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1 |
Paid Scotia Fixtures Inc. $4,000 for equipment |
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1 |
Purchased $2,100 of merchandize on account from Midlife Stores Corp. for terms 2/10, n30 |
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2 |
Sold merchandize on account to Timmins Centres Ltd. For $2,000 |
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2 |
Collected $300 for a cash sale made today to Clayton David Inc. |
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3 |
Purchased $500 of merchandize on account from Speedy Sales Co. for terms 1/10, n30 |
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4 |
Sold merchandize on account to Northern Warehouse for $2,500 |
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4 |
Timmins Centres Ltd. returned $200 of merchandize |
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5 |
Purchased $1,400 of merchandize on account from St Jean Wholesalers Corp. on account for terms n30 |
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6 |
Received notification from Midlife Stores Corp. that $100 of defective merchandize included in the March 1 purchase and subsequently returned to Midlife did not need to be paid |
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6 |
Sold merchandize on account to Sault Rapids Corp. for $1,500 |
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7 |
Purchased $600 of merchandize on account from Trent Stores Corporation for terms 2/15, n30 |
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8 |
Received the amount due from Timmins Centres Ltd. (less adjustment, less discount) |
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10 |
Paid Speedy Sales Co. for the March 3 purchase (less discount) |
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11 |
Received a $7,500 loan from Second National Bank, due in 2017 |
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12 |
Paid Peace Realty Corp. $1,000 for 2 months’ rent, March and April (recorded as an asset) |
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12 |
Sold merchandize on account to James Bay Distributors Inc. for $700 |
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13 |
Received the amount due from Northern Warehouse (less discount) |
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15 |
Paid Mitch Michaels $350 for commissions earned to date (recorded as Commissions Expense |
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15 |
Paid Midlife Stores Corporation $1,000 on account |
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15 |
Purchased $1,000 of merchandize on account from Lilydale Products Ltd. for terms 2/15, n30 |
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18 |
Paid Trent Stores Corporation for half of the March 7 purchase (less discount on payment) |
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19 |
Collected $100 for a cash sale made today to Margaret Smith |
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20 |
Purchased $1,200 of merchandize on account from Delta Centres Inc. for terms n30 |
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20 |
Paid $400 for a cash purchase from Copeland Distributors Inc. |
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20 |
Sold merchandize on account to Amigo Inc. for $600 |
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21 |
Paid St Jean Wholesalers Corp. $700 on account |
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22 |
Received $500 on account from Sault Rapids Inc. |
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23 |
Paid Tri City Insurance Ltd. $2,400 for a 1-year insurance policy, effective March 1 (recorded as an asset) |
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24 |
Paid $300 for a cash purchase from Buster’s Emporium (debited Purchases) |
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25 |
Sold merchandize on account to Pinehurst Novelties Inc. for $1,400 |
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26 |
Purchased $700 of merchandize on account from Tres Bon Markets Ltd. for terms 2/10, n30 |
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30 |
Paid Shelby Corp. $500 for deliveries to customers |
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30 |
Paid Mitch Michaels $400 for commissions earned to date |
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30 |
Paid PhoneU $75 for the monthly telephone bill |
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30 |
Paid Vision Visuals Ltd. $250 for advertizing materials used during the month |
Required: Prepare journal entries to record the March transactions and necessary adjusting entries. Include general ledger account numbers and a brief description for each entry.
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