Question
In: Accounting
Flint Ltd., a private company following ASPE, is a merchant and operates in the province of...
Flint Ltd., a private company following ASPE, is a merchant and operates in the province of Ontario, where the HST rate is 13%. Flint uses a perpetual inventory system. Transactions for the business for the month of March and April are as follows:
| Mar. | 1 | Paid March rent to the landlord for the rental of a warehouse. The lease calls for monthly payments of $5,100 plus 13% HST. | |
| 3 | Sold merchandise on account and shipped merchandise to Marcus Ltd. for $19,200, terms n/30, f.o.b. shipping point. This merchandise cost Flint $13,600. | ||
| 5 | Granted Marcus a sales allowance of $800 (exclusive of taxes) for defective merchandise purchased on March 3. No merchandise was returned. | ||
| 7 | Purchased merchandise for resale on account from Tinney Ltd. at a list price of $4,100, plus applicable tax. | ||
| 12 | Purchased a desk for the shipping clerk, and paid by cash. The price of the desk was $800 before applicable tax. | ||
| Apr. | 15 | Paid the monthly remittance of HST to the Receiver General for Canada. | |
| 30 | Paid the monthly PST remittance to the Treasurer of the province (where applicable). |
QUESTIONS:
A) Prepare the journal entries to record these transactions on the books of Flint Ltd
| Mar.1 | Debit | Credit |
| Mar.3 | Debit | Credit |
(To record sales on account)
| Mar.3 | Debit | Credit |
(To record cost of goods sold)
| Mar.5 | Debit | Credit |
| Mar.7 | Debit | Credit |
| Mar.12 | Debit | Credit |
| Apr.15 | Debit | Credit |
B) Assume instead that Flint operates in the province of Alberta, where PST is not applicable. GST is charged at the rate of 5%. Prepare the journal entries to record these transactions on the books of Flint.
| Mar.1 | Debit | Credit |
| Mar.3 | Debit | Credit |
(To record sales on account)
| Mar.3 | Debit | Credit |
(To record cost of goods sold)
| Mar.5 | Debit | Credit |
| Mar.7 | Debit | Credit |
| Mar.12 | Debit | Credit |
| Apr.15 | Debit | Credit |
C) Assume instead that Flint operates in a province where 10% PST is also charged on the 5% GST. Prepare the journal entries to record these transactions on the books of Flint. Rental payments and inventory purchased for resale are PST-exempt.
| Mar.1 | Debit | Credit |
| Mar.3 | Debit | Credit |
(To record sales on account)
| Mar.3 | Debit | Credit |
(To record cost of goods sold)
| Mar.5 | Debit | Credit |
| Mar.7 | Debit | Credit |
| Mar.12 | Debit | Credit |
| Apr.15 | Debit | Credit |
| Apr. 30 | Debit | Credit |
Here is a list of accounts that you can use to create the journal entries:
Accounts Payable
Accounts Receivable
Accretion Expense
Accumulated Depletion - Mineral Resources
Accumulated Depreciation - Drilling Platform
Accumulated Depreciation - Oil Tanker Depot
Asset Retirement Obligation
Bonus Expense
Bonus Payable
Cash
Container Sales Revenue
Cost of Goods Sold
CPP Contributions Payable
Current Tax Expense
Depreciation Expense
Dividends Payable
Drilling Platform
EI Premiums Payable
Employee Benefit Expense
Employee Income Tax Deductions Payable
Estimated Inventory Returns
Estimated Liability for Premiums
Equipment
Freight in
Furniture
Gain on Settlement of ARO
GST Payable
GST Receivable
HST Payable
HST Receivable
Income Tax Expense
Income Tax Payable
Income Tax Receivable
Interest Expense
Interest Payable
Inventory
Inventory of Premiums
Land Improvements
Liability for Guarantee
Litigation Expense
Litigation Liability
Loss Due to Environmental Clean-up
Loss on Expropriation
Loss on Guarantee
Loss on Settlement of ARO
Materials, Cash, Payables
Mineral Resources
No Entry
Notes Payable
Notes Receivable
Oil Tanker Depot
Parental Leave Benefits Payable
Payroll Tax Expense
Premium Expense
Premium Liability
Property Tax Expense
Property Tax Payable
PST Payable
Purchase Discounts
Purchase Discounts Lost
Purchase Returns and Allowances
Purchases
Refund Liability
Rent Expense
Rent Payable
Rent Revenue
Retained Earnings
Returned Inventory
Salaries and Wages Expense
Salaries and Wages Payable
Sales Returns and Allowances
Sales Revenue
Sales Tax Payable
Service Revenue
Sick Pay Wages Payable
Trucks
Unearned Revenue
Union Dues Payable
Vacation Wages Payable
Warranty Expense
Warranty Liability
Warranty Revenue
Solutions
Expert Solution
Answer to Part a
| Date | Account Title and Explanation | Debit | Credit |
| Mar 1 | Rent Expense | $ 5,100 | |
| HST Receivable (5,100 X 13%) | $ 663 | ||
| Cash | $ 5,763 | ||
| Mar 3 | Accounts Receivable - Marcus Ltd. | $ 21,696 | |
| Sales Revenue | $ 19,200 | ||
| HST Payable (19,200 X 13%) | $ 2,496 | ||
| Mar 3 | Cost of Goods Sold | $ 13,600 | |
| Merchandise Inventory | $ 13,600 | ||
| (To record | |||
| Mar 5 | Sales Return and Allowances | $ 800 | |
| HST Payable | $ 104 | ||
| Accounts Receivable - Marcus Ltd. | $ 904 | ||
| Mar 7 | Merchandise Inventory | $ 4,100 | |
| HST Receivable | $ 533 | ||
| Accounts Payable - Tinney Ltd | $ 4,633 | ||
| Mar 12 | Furniture | $ 800 | |
| HST Receivable | $ 104 | ||
| Cash | $ 904 | ||
| Apr 15 | HST Payable | $ 2,392 | |
| HST Receivable | $ 1,300 | ||
| Cash | $ 1,092 | ||
Part b
| Date | Account Title and Explanation | Debit | Credit |
| Mar 1 | Rent Expense | $ 5,100 | |
| GST Receivable | $ 255 | ||
| Cash | $ 5,355 | ||
| Mar 3 | Accounts Receivable - Marcus Ltd. | $ 20,160 | |
| Sales Revenue | $ 19,200 | ||
| GST Payable | $ 960 | ||
| Mar 3 | Cost of Goods Sold | $ 13,600 | |
| Merchandise Inventory | $ 13,600 | ||
| (To record | |||
| Mar 5 | Sales Return and Allowances | $ 800 | |
| GST Payable | $ 40 | ||
| Accounts Receivable - Marcus Ltd. | $ 840 | ||
| Mar 7 | Merchandise Inventory | $ 4,100 | |
| GST Receivable | $ 205 | ||
| Accounts Payable - Tinney Ltd | $ 4,305 | ||
| Mar 12 | Furniture | $ 800 | |
| GST Receivable | $ 40 | ||
| Cash | $ 840 | ||
| Apr 15 | GST Payable | $ 920 | |
| GST Receivable | $ 500 | ||
| Cash | $ 420 | ||
Part c
| Date | Account Title and Explanation | Debit | Credit |
| Mar 1 | Rent Expense | $ 5,100 | |
| GST Receivable | $ 255 | ||
| Cash | $ 5,355 | ||
| Mar 3 | Accounts Receivable - Marcus Ltd. | $ 22,176 | |
| Sales Revenue | $ 19,200 | ||
| GST Payable | $ 960 | ||
| PST Payable | $ 2,016 | ||
| Mar 3 | Cost of Goods Sold | $ 13,600 | |
| Merchandise Inventory | $ 13,600 | ||
 ekkarill92 answered 1 year agoRelated SolutionsGrouper Ltd. is a merchant and operates in the province of Ontario, where the HST rate...Grouper Ltd. is a merchant and operates in the province of
Ontario, where the HST rate is 13%. Grouper uses a perpetual
inventory system. Transactions for the business for the month of
March and April are as follows:
Mar.
1
Paid March rent to the landlord for the rental of a warehouse.
The lease calls for monthly payments of $5,490 plus 13% HST.
3
Sold merchandise on account and shipped merchandise to Marcus
Ltd. for $16,000, terms n/30, f.o.b. shipping...
Riverbed Ltd. is a merchant and operates in the province of Ontario, where the HST rate...Riverbed Ltd. is a
merchant and operates in the province of Ontario, where the HST
rate is 13%. Riverbed uses a perpetual inventory system.
Transactions for the business for the month of March and April are
as follows:
Mar.
1
Paid March rent to the
landlord for the rental of a warehouse. The lease calls for monthly
payments of $5,020 plus 13% HST.
3
Sold merchandise on account
and shipped merchandise to Marcus Ltd. for $17,420, terms n/30,
f.o.b. shipping...
Pharoah Homes Ltd., a private company reporting under ASPE, reported the following for the year ended...Pharoah Homes Ltd., a private company reporting under ASPE,
reported the following for the year ended September 30, 2021:
2021
2020
Land
$198,000
$132,000
Building
231,000
231,000
Equipment
91,740
82,500
Accumulated depreciation
42,900
36,300
Dividends payable
6,600
13,200
Mortgage note payable
72,600
33,000
Common shares
158,500
102,400
Retained earnings
145,200
52,800
Depreciation expense
9,900
Gain on equipment sold
1,320
Profit
138,600
Additional information:
1.
Equipment was purchased for $13,200.
2.
Land was purchased for $23,100 cash and a mortgage note...
Type or paste question hereiole Ltd., a private company reporting under ASPE, reported the following for...Type or paste question hereiole Ltd., a private company
reporting under ASPE, reported the following for the years ended
May 31, 2021, and 2020.
ORIOLE LTD.
Balance Sheet
May 31
Assets
2021
2020
Cash
$20,600
$43,000
Accounts receivable
83,400
75,000
Inventory
169,000
156,000
Prepaid expenses
4,400
5,900
Land
117,000
72,000
Equipment
304,000
184,000
Accumulated depreciation
(62,200
)
(36,000
)
Total assets
$636,200
$499,900
Liabilities and Shareholders’
Equity
Accounts payable
$40,600
$36,000
Dividends payable
5,900
4,400
Income taxes payable
1,600
5,400...
Coyote Ltd, a private company reporting under ASPE, reported the following for the years ended May...Coyote Ltd, a private company reporting under ASPE, reported the
following for the years ended May 31, 2017, and 2016
Coyote Ltd.
Balance sheet May 31
Assets
2017
2016
Cash
$12,600
$43,000
Accounts recievable
$85,000
$76,000
Inventory
$172,000
$160,000
Prepaid expenses
$5,000
$7,500
Land
$125,000
$75,000
Equipment
$325,000
$190,000
Accumulated depreciation
($68250)
($40,000
Total assets
$656,350
$511,500
Liability and Shareholder's equity
Accounts payable
$43,000
$38,000
Dividends payable
$7,500
$5,000
Income taxes payable
$2,500
$6,000
Mortgage payable
$125,000
$80,000
Common shares...
Pharoah Ltd., a private company reporting under ASPE, reported the following for the years ended May...Pharoah Ltd., a private company reporting under ASPE, reported
the following for the years ended May 31, 2021, and 2020.
PHAROAH LTD.
Balance Sheet
May 31
Assets
2021
2020
Cash
$20,900
$43,250
Accounts receivable
83,750
75,250
Inventory
170,000
156,250
Prepaid expenses
4,500
6,000
Land
118,250
72,500
Equipment
305,000
185,000
Accumulated depreciation
(63,200
)
(36,250
)
Total assets
$639,200
$502,000
Liabilities and Shareholders’
Equity
Accounts payable
$40,750
$36,250
Dividends payable
6,000
4,500
Income taxes payable
1,700
5,500
Mortgage payable
117,000
76,250...
Pharoah Ltd., a private company reporting under ASPE, reported the following for the years ended May...Pharoah Ltd., a private company reporting under ASPE, reported
the following for the years ended May 31, 2021, and 2020.
PHAROAH LTD.
Balance Sheet
May 31
Assets
2021
2020
Cash
$24,200
$46,000
Accounts receivable
87,600
78,000
Inventory
181,000
159,000
Prepaid expenses
5,600
7,100
Land
132,000
78,000
Equipment
316,000
196,000
Accumulated depreciation
(74,200
)
(39,000
)
Total assets
$672,200
$525,100
Liabilities and Shareholders’
Equity
Accounts payable
$42,400
$39,000
Dividends payable
7,100
5,600
Income taxes payable
2,800
6,600
Mortgage payable
128,000
79,000...
The unadjusted trial balance of Imagine Ltd., a private company following ASPE, at December 31, 2020...The unadjusted trial balance of Imagine Ltd., a private company
following ASPE, at December 31, 2020 is as follows:
Debit
Credit
Cash
$10,850
Accounts receivable
56,500
Allowance for doubtful accounts
$750
FV-NI investments
8,600
Inventory
58,000
Prepaid insurance
2,940
Prepaid rent
13,200
FV-OCI investments
14,000
Bond investment at amortized cost
18,000
Land
10,000
Equipment
104,000
Accumulated depreciation—equipment
18,000
Accounts payable
9,310
Bonds payable
50,000
Common shares
100,000
Retained earnings
103,260
Sales revenue
223,310
Rent revenue
10,200
Purchases
170,000
Purchase discounts...
Question 3 Sunland Ltd., a private company reporting under ASPE, reported the following for the years...Question 3
Sunland Ltd., a private company reporting under ASPE, reported
the following for the years ended May 31, 2017 and 2016.
SUNLAND LTD.
Balance Sheet
May 31
Assets
2017
2016
Cash
$24,800
$46,500
Accounts receivable
88,300
78,500
Inventory
183,000
159,500
Prepaid expenses
5,800
7,300
Land
134,500
79,000
Equipment
318,000
198,000
Accumulated depreciation
(76,200
)
(39,500
)
Total assets
$678,200
$529,300
Liabilities and Shareholders’
Equity
Accounts payable
$42,700
$39,500
Dividends payable
7,300
5,800
Income taxes payable
3,000
6,800
Mortgage payable...
Carla Vista Ltd., a private company reporting under ASPE, reported the following for the years ended...Carla Vista Ltd., a private company reporting under ASPE,
reported the following for the years ended May 31, 2021, and
2020.
CARLA VISTA LTD.
Balance Sheet
May 31
Assets
2021
2020
Cash
$25,100
$46,750
Accounts receivable
88,650
78,750
Inventory
184,000
159,750
Prepaid expenses
5,900
7,400
Land
135,750
79,500
Equipment
319,000
199,000
Accumulated depreciation
(77,200
)
(39,750
)
Total assets
$681,200
$531,400
Liabilities and Shareholders’
Equity
Accounts payable
$42,850
$39,750
Dividends payable
7,400
5,900
Income taxes payable
3,100
6,900
Mortgage payable...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|