Chopin Ltd is a retailing business. The business is registered for…

Question Chopin Ltd is a retailing business. The business is registered for… Chopin Ltd is a retailing business. The business is registered for GST. Chopin Ltd uses a periodic inventory system. The business has a 30 June year end. The transactions for June 2021 are provided below. All transactions are inclusive of GST. The relevant customer and supplier account balances at 31 May, 2021 were: Accounts Receivable                             Accounts PayableS. Devine           $6,050                         D. Harms         $18,150R. Burton            3,025 Jun 5      Sold inventory to B. Senton for $4,400, terms 2/7, n/30.         6     Purchased inventory from S. Warren for $2,750, terms 2/7, n/30.         7     Received a cheque from S. Devine for $3,850 as part payment of his account.         8     Returned inventory of $550 to S. Warren for credit.       11     Paid Brambles Ltd for freight inwards of $330.       12     Received payment from B. Senton for amount due.       13     Paid S. Warren the amount due.       14     Paid Ace Reality rent of $1,100 for June.       15     Issued a credit note for damaged inventory of $770 returned by R. Burton. 17     Sent a cheque to D. Harms for $17,968 in full settlement of the account.       18     Paid Telstra for a telephone bill of $616.       23     Cash sales totaled $9,460.       25     Sold inventory on account to B. Cole for $7,700, terms 1/7, n/30.       28     R. Burton paid his account in full.       29     Purchased inventory from R. Gibson for $1,760, terms 2/7, n/30.    29    Received payment from B. Cole for goods sold on 25 June.    30    Chopin Ltd offers a 12-month warranty on their products. On 1 July 2020, there was a credit balance of $17,000 in its warranty provision account. During June Chopin Ltd incurred $16 500 in warranty costs which was in the form of inventory. At the end of the month, Chopin Ltd estimated its liability for unexpired warranty contracts as $17,500.   Required: a)          Record the June transactions in the relevant journals (round amounts to the nearest $). Total all special journals. Ignore narrations in the general journal. [23 Marks] b)       Post the journals to the Accounts Receivable Control Account only in the general ledger. [3 Marks] c)      Explain the difference between a provision and other types of liabilities recognized in the statement of financial position.  [3 Marks] Accounting Business Financial Accounting BUS 285 Share QuestionEmailCopy link Comments (0)