Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2020, Modern Electronics purchased from
Question:
Modern Electronics Company purchases merchandise inventory from several suppliers. On April 1, 2020, Modern Electronics purchased from Speedy Supplies $100,000 of inventory on account. On May 15, 2020, Modern Electronics sold inventory to a Jones Apartment Complex for $90,000 cash, which included $70,000 COGS for the inventory. On June 15, 2020 Modern Electronics remitted the applicable PST and GST or HST.
Required
Journalize Modern Electronics Company transactions on April 1, 2020, May 15, 2020 and June 15, 2020, including applicable PST and GST or HST assuming it is located in:
a. Ontario
b. British Columbia
c. Alberta
Use the PST, GST, and HST rates in Exhibit 10.6.
Exhibit 10.6
Step by Step Answer:
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann