Fine Equipment uses a perpetual inventory system and is located in Vancouver, British Columbia, where the PST rate is $7\%.$ Fine Equipment uses the earnings approach for revenue recognition. The following transactions took place in March:

Mar. $1$ Paid rent of $$1,250$ plus PST and GST for March to the landlord.

$5$ Purchased $$17,875($plus applicable taxes$)$ worth of camping goods on account from Keyboard Central.

$9$ A new laptop was purchased for the office to update their equipment. The price of the laptop was $$1,500,$ plus taxes.

$12$ Returned $$3,500$ of camping goods to Keyboard Central.

$18$ Sold $$5,300$ of camping gear, plus applicable taxes, to Outdoor Adventures.

The cost of the camping gear to Fine Equipment was $$2,200.$

$30$ Received an invoice of $$120$ plus PST and GST from TELUS for telephone services for March.

$30$ Issued a cheque to the Receiver General for Canada for the quarterly remittance of GST$.$ The GST Payable was $$6,800$ and the GST Recoverable was $$6,200$ at the end of the quarter.

Instructions

Prepare the journal entries for the month of March.

Answer rating: 100% (QA)

Here are the journal entries for Fine Equipment for the month of March 1 March 1 ... View the full answer