Question

Exercise 13-5 Monty Ltd s a merchant and operates in the province of Ontario, where the HS of March and April are as follows rate is 13 Μ。 uses a perpetua inventor, s stem Tansactions or he business or, he month Paid March rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $6,760 plus 13% HST Sold merchandise on account and shipped merchandise to Marcus Ltd. for $20,380, terms n/30.0.b. shipping point. This merchandise cost Monty $11,700. Granted Marcus a sales allowance of $710 (exclusive of taxes) for defective merchandise purchased on March 3. No merchandise was returned. Purchased merchandise for resale on account from Tinney Ltd. at a list price of $3,200, plus applicable tax. Purchased a desk for the shipping clerk, and paid by cash. The price of the desk was $540 before applicable tax. Paid the monthly remittance of HST to the Receiver General Paid the monthly PST remittance to the Treasurer of the province (where applicable). Mar. 1 3 5 7 12 Apr. 15 30 $20,3, /.Noise was returned.

Answer 1

Part 1

Date	Account titles and explanation	Debit	Credit
Mar. 1	Rent Expense	6750
	HST Receivable (6750*13%)	878
	Cash		7628
Mar. 3	Accounts Receivable—Marcus Ltd.	23029
	Sales		20380
	HST Payable (20380*13%)		2649
	(To record sale of merchandise on account
Mar. 3	Cost of Goods Sold	11700
	Merchandise Inventory		11700
	(To record cost of merchandise sold)
Mar. 5	Sales Returns and Allowances	710
	HST Payable ($710 X 13%)	92
	Accounts Receivable—Marcus Ltd.		802
Mar. 7	Merchandise Inventory	3200
	HST Receivable ($3200 X 13%)	416
	Accounts Payable—Tinney Ltd.		3616
Mar. 12	Furniture	540
	HST Receivable ($540 X 13%)	70
	Cash		610
Apr. 15	HST Payable ($2,649 – $92)	2557
	HST Receivable (878+416+70)		1364
	Cash		1193

Part 2

Date	Account titles and explanation	Debit	Credit
Mar. 1	Rent Expense	6750
	GST Receivable (6750*5%)	338
	Cash		7088
Mar. 3	Accounts Receivable—Marcus Ltd.	21399
	Sales		20380
	GST Payable (20380*5%)		1019
	(To record sale of merchandise on account
Mar. 3	Cost of Goods Sold	11700
	Merchandise Inventory		11700
	(To record cost of merchandise sold)
Mar. 5	Sales Returns and Allowances	710
	GST Payable ($710 X 5%)	36
	Accounts Receivable—Marcus Ltd.		746
Mar. 7	Merchandise Inventory	3200
	GST Receivable ($3200 X 5%)	160
	Accounts Payable—Tinney Ltd.		3360
Mar. 12	Furniture	540
	GST Receivable ($540 X 5%)	27
	Cash		567
Apr. 15	GST Payable ($1019-36)	983
	GST Receivable (338+160+27)		525
	Cash		458

Part 3

Date	Account titles and explanation	Debit	Credit
Mar. 1	Rent Expense	6750
	GST Receivable (6750*5%)	338
	Cash		7088
Mar. 3	Accounts Receivable—Marcus Ltd.	23967
	Sales		20380
	GST Payable (20380*5%)		1019
	PST Payable (20380*1.05)*12%		2568
	(To record sale of merchandise on account
Mar. 3	Cost of Goods Sold	11700
	Merchandise Inventory		11700
	(To record cost of merchandise sold)
Mar. 5	Sales Returns and Allowances	710
	GST Payable ($710 X 5%)	36
	PST Payable (710*1.05)*12%	89
	Accounts Receivable—Marcus Ltd.		835
Mar. 7	Merchandise Inventory	3200
	GST Receivable ($3200 X 5%)	160
	Accounts Payable—Tinney Ltd.		3360
Mar. 12	Furniture	540
	GST Receivable ($540 X 5%)	27
	Cash		567
Apr. 15	GST Payable ($1019-36)	983
	GST Receivable (338+160+27)		525
	Cash		458
Apr. 30	PST Payable ($2568-89)	2479
	Cash		2479