Question $4$: $(20$ marks$)$

Trenton Home Limited $($THL$)$ is a retailer operating in the province of Ontario, where the HST

rate is $13\%.$ Trenton uses a perpetual inventory system. Transactions for the business in the

month of November $2025$ are shown below:

Nov $1$ Paid November store rent to the landlord. Monthly rent payments are $$5,500$ plus

HST$.$

Nov $4$ Purchase merchandise inventory on account from Comet Industries. The

merchandise cost $$8,000$ plus HST$.$

Nov $6$ Returned $$500$ of the merchandise to Comet Industries.

Nov $7$ Sold merchandise on account to Solar Star Company for $$10,000$ plus HST$,$ terms

n$/30,$ FOB shipping point. The merchandise was shipped to Solar Star. The cost

of the merchandise to THL was $$6,000.$

Nov $12$ Purchased a new laptop at Staples for the marketing manager. The price of the

laptop was $$1,200$ plus HST$.$ Paid cash.

Nov $30$ Paid the quarterly remittance of HST to the Receiver General. The balance in the

accounts were as follows: HST Payable, $$2,520$ and HST Recoverable $$985.$

Required:

Prepare the journal entries to record these transactions on the books of Trenton Home Limited.