Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Roof Living sells outdoor furniture and accessories. It operates in a province which has a 6% PST and 5% GST. Roof Living charges PST and
Roof Living sells outdoor furniture and accessories. It operates in a province which has a 6% PST and 5% GST. Roof Living charges PST and GST to customers, and pays PST and GST on most purchases, except for inventory. The company only pays GST on the purchase of inventory. The following transactions occurred during June, 2020 Jun 2 Purchased inventory for $4,000 plus GST on account Jun 5 Sold inventory to a customer for $5,300 plus GST and PST on account. The inventory costs $3.975. Jun 12 Purchased $420 worth of office supplies, plus GST and PST in cash. Jun 25 Sold inventory to a customer for $7,000 plus GST and PST for cash. The inventory costs $3,733. Jun 27 Received the total amount owing from the customer from Jun 5. Jun 28 Paid the supplier from June 2 the amount owing. Jun 30 Prepared the PST remittance to the provincial government Jun 30 Prepared the GST remittance to the federal government Record the transactions for June 2020. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole dollar. For transactions that have more than one debit or more than one credit enter the accounts in alphabetical order. Date Account Title and Explanation Debit Credit Jun 2 . Purchased inventory on account Jun 5 . Sales on account Jun 5 COGS for the above sale Jun 12 Jun 12 Purchased office supplies Jun 25 . . Sales for Cash Jun 25 . COGS for the above sale Jun 27 Received cash from customer Jun 28 e Paid supplier Jun 30 . PST remittance Jun 30 GST remittance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started