Decorative Limited sells all kinds of Christmas decorations. The entity's accountant, John Smith, was preparing the...
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Decorative Limited sells all kinds of Christmas decorations. The entity's accountant, John Smith, was preparing the information needed to account for the GST and report to the taxation authority for the quarter ending 31 December 2022, when he had to suddenly take annual leave for family reasons. You have been hired to take over John's role until he returns. Before John left, he prepared the following information for the quarter: Total sales (including GST) Total sales returns (including GST) Total purchases (including GST) Purchase returns (including GST) Required: $141,400 2,800 57,120 6,720 (a) Journalise the sales and purchases transactions, as well as payment of GST to the taxation authority, using the GST paid and GST collected accounts (assume GST rate of 10%). (b) Assuming the total net sales for the quarter were $57,120 (including GST) and the total net purchases were $141,400 (including GST), journalise the sales and purchases transactions, as well as the refund from the taxation authority, using the GST paid and GST collected accounts (Note: Purchase and Sales Returns are not applicable). Decorative Limited sells all kinds of Christmas decorations. The entity's accountant, John Smith, was preparing the information needed to account for the GST and report to the taxation authority for the quarter ending 31 December 2022, when he had to suddenly take annual leave for family reasons. You have been hired to take over John's role until he returns. Before John left, he prepared the following information for the quarter: Total sales (including GST) Total sales returns (including GST) Total purchases (including GST) Purchase returns (including GST) Required: $141,400 2,800 57,120 6,720 (a) Journalise the sales and purchases transactions, as well as payment of GST to the taxation authority, using the GST paid and GST collected accounts (assume GST rate of 10%). (b) Assuming the total net sales for the quarter were $57,120 (including GST) and the total net purchases were $141,400 (including GST), journalise the sales and purchases transactions, as well as the refund from the taxation authority, using the GST paid and GST collected accounts (Note: Purchase and Sales Returns are not applicable).
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a Journalizing the sales and purchases transactions and payment of GST to the taxation authority 1 S... View the full answer
Related Book For
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
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