Use General Journal

PRACTICE EXERCISE J Record the following transactions in the General Journal, accounting for GST as explained in this chapter. Use GST Payable for the tax on goods sold, and use GST-ITC for the tax on items purchased. Provide suitable explanations. 20- Apr. 2 Bought merchandise worth $7,500 plus 5% GST. Issued cheque. 8 Bought merchandise on account from Lipton Suppliers Co., $2,300 plus 5% GST. Invoice #234, terms net 30 days. 11 Cash sales for the week, $12,500 plus GST. 12 Sale on account to C. Sakrapee, $540 plus GST. Invoice #14, terms net 10 days. 16 Sold merchandise on account to R.J. Lupin, $262.50 (includes $12.50 GST). Invoice #15, terms net 10 days. 21 Bought office supplies, $315, which includes $15 GST. Paid cash. 22 Paid water bill, $78.75, which includes $3.75 GST. 25 Sold merchandise to Franco Moret on account, $210, which includes $10 GST. Invoice #16, terms net 10 days. 26 Bought a new cash register, $420 plus GST. Paid cash