The following are selected trankactions of Pendlebury Department Store Ltd.(PDSL) for the current year ended December 31. PDSL is a private company operating in the province of Manitoba, where PST is 7\% and GST is 5\%. PDSL follows ASPE and has a periodic inventory system. 1. On February 2. POSL placed an order to buy goods for resale from Hashmani Limited for $46,000 plus GST. Terms of purchase aref,o.b. destination, net 15. The goods arrived February 6 and the invoice was paid on February 20 , (Hint: Inventory for resale is purchased PST-exempt.) 2. On April 1. PDSL purchased a truck for $50,000 from Schuler Motors Limited, psying $11.000 cash and signing a one-year. 8% note for the balance of the purchase price. Provincial sales tax of 8% and GST of 5% were charged by the supplier on the purchase price. 3. On May 1, PDSL borrowed $83,000 from First Provincial Bank by signing a $92,000 non-interest-bearing note due one year from May 1 4. On June 30 and December 31. PDSL remitted cheques for $19,000 each as instalments on its current year tax liability, 5. On August 14, PDSE's board of directors declared a $13,000 cash dividend that was payable on September 10 to shareholders of record on August 31 6. On December 5. PDSL received $750 from Jefferson Ltd, as a deposit on a trailer that Jefferson is using for an office move: The deposit is to be returned to Jefferson after it returns the trailer in good condition on January 15 . (Hint: Use the account Refund Liability) 7. On December 10,PDSL purchased new furniture and fixtures for $8,000 on account. Provincial sales tax of 7% and GST of 5% were charged by the supplier on the purchase price. 8. During December, cash sales of $79.000 were recorded, plus 7% provincial sales tax and 5% GST that must be remitted by the 15 th day of the following month. Both taxes are levied on the sale amount to the customerilgnore any cost of goods sold. 9. PDSts lease for its store premises calls for a $2.500 monthly rental payment plus 3% of net sales. The payment is due one week after monthend. 10. PDSL was advised during the month of December that it is legally required to restore the area (considered a land improvement) surrounding one of its new store parking lots, when the store is closed in 12 years. PDSL estimates that the fair value of this obligation at December 31 is $46,000. 10. P0SL was advised during the month of December that it is legals required to restore the area considered a tand improvement) surrounding one of its new store parking lots, when the store is closed in 12 year . PDSL estimates that the fair value of this obligation at December 31 is $46,000. 11. The corporate taxretum indicated tamble income of $205000. PDSi'sineome tax rate is 20% (a) Prepare all the journal entries necessary to record the above tramsactions when they occurred and amy adjisting journalentries (enceot for depreciation expense) refative to the transactions that would be required to present financial statements at December 31 in accordaoce with GAAP. (Gedit occount tities are automaticolly indented when the amount is entered: Do not indent manually. List all debit entries belore arefit entries. If no entry is required, select "No Entry' for the occount tities and enter Of for the aimounts. Record jounol entries in the onder presented in the
