Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2023, Modern Electronics purchased from
Question:
Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2023, Modern Electronics purchased from Speedy Supplies $120,000 of inventory on account. On May 15, 2023, Modern Electronics sold inventory to a Jones Apartment Complex for $110,000 cash, which included $90,000 COGS for the inventory. On June 15, 2023 Modern Electronics remitted the applicable PST and GST or HST. Use the PST, GST, and HST rates in Exhibit 10.6.
Required:
Journalize Modern Electronics Company transactions on April 1, 2023, May 15, 2023, and June 15, 2023, including applicable PST and GST or HST assuming it is located in:
- Ontario
- British Columbia
- Alberta
Part a. Modern Electronics is located in Ontario
1 Record the purchase of inventory on credit plus applicable ITC.
2
Record the cash sales plus applicable Sales tax.
3
Record the cost of sales.
4
Record the refund of applicable Sales tax from Receiver General for Canada.
Part b. Modern Electronics is located in British Columbia
1 Record the purchase of inventory on credit plus applicable ITC.
2
Record the cash sales plus applicable Sales tax.
3
Record the cost of sales.
4
Record the refund of applicable Sales tax from Receiver General for Canada.
5
Record the remittance of PST to provincial authority—BC Ministry of Finance.
Part c. Modern Electronics is located in Alberta
1 Record the purchase of inventory on credit plus applicable ITC.
2
Record the cash sales plus applicable Sales tax.
3
Record the cost of sales.
4
Record the refund of applicable Sales tax from Receiver General for Canada.
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris