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Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2017, Modern Electronics purchased from Speedy Supplies $120,000 of inventory on account. On
Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2017, Modern Electronics purchased from Speedy Supplies $120,000 of inventory on account. On May 15, 2017, Modern Electronics sold inventory to a Jones Apartment Complex for $110,000 cash, which included $90,000 COGS for the inventory. On June 15, 2017 Modern Electronics remitted the applicable PST and GST or HST. Use the PST, GST and HST rates in Exhibit 10.6 Required: Journalize Modern Electronics Company transactions on April 1, 2017, May 15, 2017 and June 15, 2017, including applicable PST and GST or HST assuming it is located in: (Round the final answer to 2 decimal places.) a. Ontarid b. British Columbia c. Alberta Part a. Modern Electronics is located in Ontario View transaction list 1 Record the purchase of inventory on credit plus applicable ITC. 2 Record the cash sales plus applicable Sales tax 3 Record the cost of sales. Record the refund of applicable Sales tax from Receiver General for Canada 4 bit Credit Note:-journal entry has been entered Record entry Clear entry View general journal Part b. Modern Electronics is located in British Columbia View transaction list Record the purchase of inventory on credit plus applicable ITC. 1 2 Record the cash sales plus applicable Sales tax Record the cost of sales. Record the refund of applicable Sales tax from Receiver 3 4 General for Canada. bit Credit Record the remittance of PST to provincial authority-BC Ministry of Finance. 5 Note-journal entry has been entered Record entry Clear entry View general journal Part c. Modern Electronics is located in Alberta View transaction list Record the purchase of inventory on credit plus applicable ITC. 1 2 Record the cash sales plus applicable Sales tax 3 Record the cost of sales. Record the refund of applicable Sales tax from Receiver General for Canada 4 bit Credit Note-journal entry has been entered Record entry Clear entry View general journal
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