Refer to Nebula Limited in EB-1. Assume instead that the company operates in the province of Alberta,
Question:
In EB-1
May 1 Paid May rent to the landlord for the rental of a warehouse. The lease mils for monthly payments of $7,300 plus 5% GST.
3 Sold merchandise on account and shipped merchandise to Marvin Ltd. for 525.000, plus applicable sales taxes, terms n/30, FOB shipping point. This merchandise cost Nebula 518,600.
5 Granted Marvin Ltd. a sales allowance of $800 for defective merchandise purchased on May 3. No merchandise was returned.
7 Purchased on account from Macphee Ltd. merchandise for resale for S11,000, plus applicable tax.
12 Made a cash purchase at Home Depot of a desk for the shipping clerk The price of the desk was 3600 before applicable taxes.
31 Paid the quarterly remittance of GST to the Receiver GeneraL The balances in the accounts were as follows: GST Payable $7,480 and GST Recoverable $1,917.
Instructions
Prepare the journal entries to record these transactions on the books of Nebula.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Question Posted: