58/2/20/2@0:95.7 PRACTICE EXERCISE 2 Record General Journal entries for the following transactions related to freight and duty and brokerage charges. Provide a suitable explanation for each transaction. All payments are made by cheque, beginning with #101. Use one of these sales tax options: (1) 15% HST or (2) 5% GST + 7% PST. (Reminder: PST will not apply to merchandise for resale.) 20 3 Bought merchandise on account from Kelsey Equipment Company of Dallas, Texas, U.S.A.. Jan. $7,230 (Canadian funds): Invoice #421, terms n/30. 5 Issued Cheque #101 for duty and brokerage charges on the goods imported from Texas, $583, and for tax(es) on the goods and brokerage fee. 6 Paid Acme Transport for transporting the merchandise from Texas, $370 plus tax(es). 12 Bought special packaging equipment for the warehouse from Quality Packaging Solutions Ltd. of Boston, Massachusetts, U.S.A., $8,200 (Canadian funds); Invoice #83647, terms n/45. (Packaging Equipment) 17 Paid brokerage fees on the packaging equipment imported from Quality Packaging Solutions, $480, plus tax(es) on the equipment and broker's fee. 20 Paid Kwiky Delivery Service for the shipping charges for the new packaging equipment, $291 plus tax(es)