Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blue Spruce Corp.operates in the province of Ontario and sells merchandise on which HST must be charged at a rate of 13%. Blue Spruce uses
Blue Spruce Corp.operates in the province of Ontario and sells merchandise on which HST must be charged at a rate of 13%. Blue Spruce uses a perpetual inventory system and has a calendar year end. Transactions for the business for the month of March are shown below: Mar. 1 4 Received an order from Franz Madolf for a specialty item not in stock. Due to the cost and nature of the item, Blue Spruce required Madolf to pay $900 in advance of the sale. Received $900 cash from Madolf toward the order placed on March 1. Sold merchandise on account and shipped merchandise to Larkspur, Inc. for $28,000, plus HST with terms n/30, FOB shipping point. This merchandise cost Stratton $11,200. Collected amount owing from Larkspur. 5 30 Prepare the journal entries to record the March transactions of Blue Spruce Corp. (Credit account titles are automatically ind when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O fort amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales and sales tax payable) (To record cost of goods sold) Repeat part (a) assuming that Blue Spruce now operates in the province of British Columbia where PST is charged at the rat 7% and GST is at the rate of 5%. Also assume that Blue Spruce has a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accoun titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started