Using the information for the transactions of Wu Limited in EB-1, assume now that Wu uses a

Question:

Using the information for the transactions of Wu Limited in EB-1, assume now that Wu uses a periodic inventory system and operates in the province of Ontario, where HST is 13%.
Data in EB-1
Wu Limited is a merchant operating in the province of Manitoba, where the PST rate is 7%. Wu uses a perpetual inventory system. Transactions for the business are shown below:
May 1 Paid May rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $7,300 plus 5% GST.
3 Sold merchandise on account and shipped merchandise to Marvin Ltd. for $25,000, plus applicable sales taxes, terms n/30, FOB shipping point. This merchandise cost Wu $18,600.
5 Granted Marvin Ltd. a sales allowance of $800 for defective merchandise purchased on May 3. No merchandise was returned.
7 Purchased on account from Macphee Ltd. merchandise for resale for $11,000, plus applicable tax.
12 Made a cash purchase at Home Depot of a desk for the shipping clerk. The price of the desk was $600 before applicable taxes.
31 Paid the quarterly remittance of GST to the Receiver General. The balances in the accounts were as follows: GST Payable $7,480 and GST Recoverable $1,917.
Instructions
Prepare the journal entries to record these transactions on the books of Wu. Assume that the GST balances on May 31 provided in EB-1 are the balances in the HST accounts?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

Question Posted: