Question

Bridgeport Inc. operates in a province, where it is subject to GST of 5%. In August, Bridgeport purchased $26,900 of merchandise inventory, and had sales of $53,100 on account. Bridgeport uses a periodic inventory system.

1. Prepare the summary entry to record the purchases for August. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2. Prepare the summary entry to record sales for August. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

3. Prepare the subsequent entry to record the payment of any GST owing to the Receiver General for Canada. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

TRANSACTIONS	DEBIT($)	CREDIT($)
1) Purchases Dr.	26900
input GST Dr.	1345
To Cash A/C		28245
2) Cash A/C Dr.	55755
To Sales A/C		53100
To output GST		2655
3) output GST	2655
To input GST		1345
To Receiver general of Canada		1310
4)    Receiver general of Canada	1310
To Cash A/C		1310

NARATIONS

1) Being amount of purchases recorded

2) Being amount of sales recorded

3) Being entry passed to find net GST payable

4) Being amount of GST paid to receiver general of canada .