Riverbed Ltd. is a merchant and operates in the province of Ontario, where the H

Question

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:

30 Paid the monthly PST remittance to the Treasurer of the province (where applicable).

a) Prepare the journal entries to record these transactions on the books of Riverbed Ltd. (Round answers to 0 decimal places, e.g. 5,275. 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.)

b) Assume instead that Riverbed 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 Riverbed. (Round answers to 0 decimal places, e.g. 5,275. 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.)

c) Assume instead that Riverbed operates in a province where 9% PST is also charged on the 5% GST. Prepare the journal entries to record these transactions on the books of Riverbed. Rental payments and inventory purchased for resale are PST-exempt. (Round answers to 0 decimal places, e.g. 5,275. 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.)

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 point. This merchandise cost Riverbed $14,300. 5 Granted Marcus a sales allowance of $730 (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 $3,300, plus applicable tax. 12 Purchased a desk for the shipping clerk, and paid by cash. The price of the desk was $680 before applicable tax. Apr. 15 Paid the monthly remittance of HST to the Receiver General.

30 Paid the monthly PST remittance to the Treasurer of the province (where applicable).

a) Prepare the journal entries to record these transactions on the books of Riverbed Ltd. (Round answers to 0 decimal places, e.g. 5,275. 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.)

b) Assume instead that Riverbed 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 Riverbed. (Round answers to 0 decimal places, e.g. 5,275. 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.)

c) Assume instead that Riverbed operates in a province where 9% PST is also charged on the 5% GST. Prepare the journal entries to record these transactions on the books of Riverbed. Rental payments and inventory purchased for resale are PST-exempt. (Round answers to 0 decimal places, e.g. 5,275. 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.)

WileyPLUS , e The Following Are Selec G Grouper Ltd. Is A Merch G chegg Study l Guided S Bridgeport Limited Bega x × X > c Secure I https://edugen.wileyplus.com/edugen/student/mainfr.uni WileyPLUS Kie Intermediate Accounting, 11e CON INTRODUCTION TO FINANCIAL ACC THEOR (70-252/70-352) ASSIGNMENT RESOURCES Exercise 13-11 Bridgeport Limited began operations on January 2. 2016. The company employs 15 individuals wwho work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as scon as thay are carnedi unused sick days accumulate. Additional information is as follow Exercise 13.2 Vacation Days Used Sick Days Used by Each Employee Actual Hourly Srercise 13-21 Problem 13-10 Wage Rate by Each Employee 2016 2017 2016 520 22 2017 2016 2017 Bridgeport Limited has chosen to accrue the cost of compensated abeences at rates of pay in effect during the period when they are earned and to accrue sick pay when it is earned. For the purpose of this question, ignore any tax. CPR and El deductions when making payments to the employees. Your answer is correct Prepare the journal entries to record the transactions related to vacation entitlement during 2016 and 2017. (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.) Date Account Titles and Explanation Debit Credit Salaries and Wages Expense Vacation Wages Payable To accrue the vacaton pay antilamant earnad by tha emplayses) 2017 s and Wages Expense Vacation Wags Payable To accrue the vacaton pay entitlement earned by the emplayees) 2017 Salaries and Wages Expense acation Wages Payable To record payment for vacation time) SHOW SOLUION SHOW ANSWER Type here to search 2018-02-01

Explanation / Answer

1-Mar Rent Expense 5,020 HST Recoverable ($5,020 X 13%) 653       Cash 5,673 3 Accounts Receivable—Marcus 19,685       Sales 17,420       HST Payable ($17420 X 13%) 2,265 Cost of Goods Sold 14,300       Merchandise Inventory 14,300 5 Sales Returns and Allowances 730 HST Payable ($730 X 13%) 95       Accounts Receivable—Marcus 825 7 Merchandise Inventory 3,300 HST Recoverable ($3300 X 13%) 429      Accounts Payable—Tinney 3,729 12 Furniture 680 HST Recoverable ($680 X 13%) 88       Cash 768 April 15 HST Payable ($2,265 – $94.9) 2,170 HST Payable 1,000       HST Recoverable 1,170 ($652.6 + $429 + $88.4) (b)  Province of Alberta 1-Mar Rent Expense 5,020 GST Recoverable ($5,020 X 5%) 251   Cash 5,271 3 Accounts Receivable—Marcus 18,291 Sales 17,420 GST Payable ($17420 X 5%) 871 Cost of Goods Sold 14,300 Merchandise Inventory 14,300 5 Sales Returns and Allowances 730 GST Payable ($730 X 5%) 37 Accounts Receivable—Marcus 767 7 Merchandise Inventory 3,300 GST Recoverable ($3300 X 5%) 165 Accounts Payable—Tinney 3,465 12 Furniture 680 GST Recoverable ($680 X 5%) 34 Cash 714 April 15 GST Payable ($871 – $36.5) 835 GST Payable 385 GST Recoverable 450 ($251 + $165 + $34) (c)   1-Mar Rent Expense 5,020 GST Recoverable ($5,020 X 5%) 251   Cash 5,271 3 Accounts Receivable—Marcus 20,120 Sales 17,420 GST Payable ($17420 X 5%) 871 PST Payable 1,829 [($17420 X 1.05) X 10%] Cost of Goods Sold 14,300 Merchandise Inventory 14,300 5 Sales Returns and Allowances 730 GST Payable ($730 X 5%) 37 PST Payable [($730 X 1.05) X 10%] 77 Accounts Receivab.—Marcus 843 7 Merchandise Inventory 3,300 GST Recoverable ($3300 X 5%) 165 Accounts Payable—Tinney 3,465 12 Furniture ($680 + $71.4*) 751 GST Recoverable ($680 X 5%) 34 Cash 717 * ($680 X 1.05) X 10% = $71.4 April 15 GST Payable ($871 – $36.5) 835 GST Recoverable 385 GST Recoverable 450 ($251 + $165 + $34) 30-Jan PST Payable ($1829 – $76.65) 1,752 PST Recoverable 1,752

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