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Question #1: PST and GST Prepare the journal entries for Marvin Gardens Ltd. for the below transactions (ignore explanations). Assume the business operates in
Question #1: PST and GST Prepare the journal entries for Marvin Gardens Ltd. for the below transactions (ignore explanations). Assume the business operates in a province with a PST rate of 6%. Aug. 3 Purchased equipment for $3,000 net of tax. 20 Performed services on account for $5,000 net of tax. 31 Filed their GST and PST returns and remitted amounts owing. Question #2: GST Boardwalk Enterprises Ltd. is a business located in Alberta. They had the following transactions. July 2 Paid $7,000 (before tax) for advertising for the month. July 8 Collected $3,675 cash for services performed that day (hint: cash amount includes GST) Purchased $11,000 (before tax) of supplies on account. July 10 July 19 July 25 Bought new equipment for $7,875 total (including GST). Performed services on account for $21,000 (before tax). Aug 10 Boardwalk filed their GST return. Assume cash was paid or received (whichever is needed). Required: Prepare the journal entries for Boardwalk Enterprises Ltd. for the above transactions.
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