a)-Paras Verma Corp purchased electrical goods worth $6,000-before taxes from Saksham Ltd. on credit. The goods...
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a)-Paras Verma Corp purchased electrical goods worth $6,000-before taxes from Saksham Ltd. on credit. The goods are subject to 5% goods and services tax (GST) and 8% provincial sales tax (PST). The applicable cost will be charged to maintenance expense account. Prepare the appropriate journal entry for the purchase. Show calculations where applicable. (2 marks) b) Kangan Co. sold some inventory that had cost $7,000-before taxes to Nitish Ltd. for cash. The sale is subject to 5% goods and services tax (GST) and 8% provincial sales tax (PST). Kangan Co. uses a perpetual inventory system. Prepare the appropriate journal entry for the sale. Show calculations where applicable. (3 marks) a)-Paras Verma Corp purchased electrical goods worth $6,000-before taxes from Saksham Ltd. on credit. The goods are subject to 5% goods and services tax (GST) and 8% provincial sales tax (PST). The applicable cost will be charged to maintenance expense account. Prepare the appropriate journal entry for the purchase. Show calculations where applicable. (2 marks) b) Kangan Co. sold some inventory that had cost $7,000-before taxes to Nitish Ltd. for cash. The sale is subject to 5% goods and services tax (GST) and 8% provincial sales tax (PST). Kangan Co. uses a perpetual inventory system. Prepare the appropriate journal entry for the sale. Show calculations where applicable. (3 marks)
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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