connect A12-5 Common Financial Liabilities and Foreign Currency: ata regarding P

Question

connect A12-5 Common Financial Liabilities and Foreign Currency: ata regarding Petrilla Corp. in March 20X9: Selected opening balances: GST payable CPP payable El payable Income tax deductions payable $62,800 (cr.) ,900 (cr.) 5,200 (cr.) 16,320 (cr.) a. Cash sales for the period, $980,000 plus 5% GST. b. Monthly payroll, $117,000; less El, $3,800; CPP, $2,200; income tax, $12,200. The employer portion of payroll taxes was also recorded. C. Inventory purchases on account, $1,520,000 plus 5% GST. d. Cash sales, $3,140,000, plus 5% GST e. Sales to U.S. customer on account, US$176,000. There was no GST on the sale. The U.s dollar was worth Cdn$1.03 on this date. f. The U.S. customer paid US$140,000 on account, when the U.S. dollar was worth $1.07. The remaining amount will be paid in June. g. GST owing was remitted. h. Sixty percent of the amount owing to suppliers in (c) was paid. i. At the end of the month, the U.S. exchange rate was Cdn$1.06. Required: 1. Journalize all transactions listed above. 2. List the accounts and amounts that would appear on the 31 March statement of financial position. Exclude cash and inventory A12-6 Provisions:

Explanation / Answer

JOUNRAL ENTRIES S.NO PARTICULARS DEBIT CREDIT 1 BANK A/C DR 1029000    TO SALES 980000    TO GST PAYABLE 49000 2 GROSS WAGES 117000     TO EI 3800     TO CPP 2200     TO IT DEDUCTIONS PAYABLE 12200     TO NET WAGES PAYABLE 98800 3 PURCHASES 1520000 GST ON PURCHASES 76000      TO CREDITORS 1596000 4 BANK A/C DR 3297000    TO SALES 3140000    TO GST PAYABLE 157000 5 DEBTORS 181280    TO SALES 172648    TO GST PAYABLE 8632 6 BANK A/C 149800     TO DEBTORS 144200     TO PROFIT ON FOREIGN CURRENCY 5600 7 GST PAYABLE A/C DR 201432     TO BANK 201432 8 CREDITORS A/C DR 957600     TO BANK 957600 9 EI PAYABLE A/C DR 9000     TO BANK 9000 10 CPP PAYABLE A/C DR 6100      TO BANK 6100 11 IT DEDUCTIONS PAYABLE A/C DR 28520     TO BANK 28520 12 PROFIT ON FOREIGN CURRENCY A/C DR 5600     TO P&L A/C 5600

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