Exercise 13-5 Monty Ltd s a merchant and operates in the province of Ontario, where the HS of March and April are as follows rate is 13 uses a perpetua inventor, s stem Tansactions or he business or, he month Paid March rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $6,760 plus 13% HST Sold merchandise on account and shipped merchandise to Marcus Ltd. for $20,380, terms n/30.0.b. shipping point. This merchandise cost Monty $11,700. Granted Marcus a sales allowance of $710 (exclusive of taxes) for defective merchandise purchased on March 3. No merchandise was returned. Purchased merchandise for resale on account from Tinney Ltd. at a list price of $3,200, plus applicable tax. Purchased a desk for the shipping clerk, and paid by cash. The price of the desk was $540 before applicable tax. Paid the monthly remittance of HST to the Receiver General Paid the monthly PST remittance to the Treasurer of the province (where applicable). Mar. 1 3 5 7 12 Apr. 15 30 $20,3, /.Noise was returned. Prepare the journal entries to record these transactions on the books of Monty Ltd. (Round answers to 0 decimal places, e.g. 5,275. 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) Date Account Titles and Explanation Credit Mar.1 Mar. 3 To record sale of merchandise on account) Mar. 3 (To record cost of merchandise sold) Mar. 5 Mar. 7 Mar. 12 Apr. 15 Assume instead that Monty operates in the province of Alberta, where PST is not applicable, GST is charged at the rate of 5%. Prepare the journal entries to record these transactions on the books of Monty. (Round answers to 0 decimal places, e.g. 5,275. 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1 Mar. 3 (To record sale of merchandise on account) Mar. 3 (To record cost of merchandise sold) Mar. 5 Mar. 7 Mar. 12 Apr. 15 Assume instead that Monty operates in a province where 12% PST is also charged on the 5 GST Prepare the ouma ent es record these transactions on the boos ont Rental payments and inventory purchased for resale are PST-exempt. (Round answers to 0 decimal places, e.g. 5,275. 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 o for the amounts.) Date Account Titles and Explanation Credit Mar. 1 Mar. 3 (To record sale of merchandise on account) Mar. 3 (To record cost of merchandise sold) Mar. 5 Mar. 7 Mar. 12 Apr. 15 Apr. 30
