Question
Bridgeport Inc. operates in a province, where it is subject to GST of 5%. In August, Bridgeport purchased $26,900 of merchandise inventory, and had sales
Bridgeport Inc. operates in a province, where it is subject to GST of 5%. In August, Bridgeport purchased $26,900 of merchandise inventory, and had sales of $53,100 on account. Bridgeport uses a periodic inventory system.
1. Prepare the summary entry to record the purchases for August. (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 account titles and enter 0 for the amounts.)
2. Prepare the summary entry to record sales for August. (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 account titles and enter 0 for the amounts.)
3. Prepare the subsequent entry to record the payment of any GST owing to the Receiver General for Canada. (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 account titles and enter 0 for the amounts.)
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