Skate and Cycle Co had the following transactions for April They charge 5 GST and 8 PST on all sales April 2 Sold a Nitro 325 Speed Bike to a customer for $700 cash plus applicable taxes The original cost of the merchandise to Skate and Cycle Co was $550 4 Sold two KX225 Mountain Bikes to a customer on account for $200 each plus applicable taxes The original cost of the merchandise to Skate and Cycle Co was $135 each 7 The customer from April 4 th returns to the store showing that one of the bikes already has a hole in the seat Instead of wanting to return it, the customer was satisfied to receive a $50 credit on their account 23 Customer came in to pay their bill in full from the April 4 th transaction 30 Wrote cheque for PST owing from April, to Minister of Finance 30 Wrote cheque for GST owing from April, to Receiver General for Canada Prepare journal entries to record each of the preceding transactions Assume a perpetual inventory system Use appropriate account names from the available chart of accounts omit explanations

Question

Skate and Cycle Co  had the following transactions for April  They charge 5  GST and 8  PST on all sales  April 2 Sold a Nitro 325 Speed Bike to a customer for $700 cash plus applicable taxes  The original cost of the merchandise to Skate and Cycle Co  was $550  4 Sold two KX225 Mountain Bikes to a customer on account for $200 each plus applicable taxes  The original cost of the merchandise to Skate and Cycle Co  was $135 each  7 The customer from April 4 th returns to the store showing that one of the bikes already has a hole in the seat  Instead of wanting to return it, the customer was satisfied to receive a $50 credit on their account  23 Customer came in to pay their bill in full from the April 4 th transaction  30 Wrote cheque for PST owing from April, to Minister of Finance  30 Wrote cheque for GST owing from April, to Receiver General for Canada  Prepare journal entries to record each of the preceding transactions  Assume a perpetual inventory system  Use appropriate account names from the available chart of accounts   omit explanations

Accepted Answer

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April 2	Sold a Nitro 325 Speed Bike to a customer for $700 cash plus applicable taxes. The original cost of the merchandise to Skate and Cycle Co. was $550.

4	Sold two KX225 Mountain Bikes to a customer on account for $200 each plus applicable taxes. The original cost of the merchandise to Skate and Cycle Co. was $135 each.

7	The customer from April 4^th returns to the store showing that one of the bikes already has a hole in the seat. Instead of wanting to return it, the customer was satisfied to receive a $50 credit on their account.

23	Customer came in to pay their bill in full from the April 4^th transaction.

30	Wrote cheque for PST owing from April, to Minister of Finance.

30	Wrote cheque for GST owing from April, to Receiver General for Canada.

Question

Skate and Cycle Co. had the following transactions for April. They charge 5% GST and 8% PST on all sales. April 2 Sold a Nitro

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