Elmstreet Merchandising charges GST on all its sales and pays GST on all its purchases. The...
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Elmstreet Merchandising charges GST on all its sales and pays GST on all its purchases. The following are transactions for the month of January. Jan 3 Purchased inventory from Cannery Wholesale for $3,255, including GST. 10 Sold merchandise to Gord's Corner Store on account for $6,000 plus GST. Cost of the merchandise sold was $4,150. 18 Purchased office supplies on account from Staples for $400 plus GST. 30 Collected balance on account from Gord's Corner Store. Required: a) Prepare the journal entries for Elmstreet Merchandising for these transactions for the month of January assuming they use a perpetual inventory system (explanations on entries are not required). b) Prepare the journal entry on February 3 when Elmstreet Merchandising files their GST return and makes their remittance payment or receives their refund (explanation on entry not required). (3 marks) Elmstreet Merchandising charges GST on all its sales and pays GST on all its purchases. The following are transactions for the month of January. Jan 3 Purchased inventory from Cannery Wholesale for $3,255, including GST. 10 Sold merchandise to Gord's Corner Store on account for $6,000 plus GST. Cost of the merchandise sold was $4,150. 18 Purchased office supplies on account from Staples for $400 plus GST. 30 Collected balance on account from Gord's Corner Store. Required: a) Prepare the journal entries for Elmstreet Merchandising for these transactions for the month of January assuming they use a perpetual inventory system (explanations on entries are not required). b) Prepare the journal entry on February 3 when Elmstreet Merchandising files their GST return and makes their remittance payment or receives their refund (explanation on entry not required). (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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