Prepare all the necessary journal entries for the above transactions. Assume that Diya Automotive Company uses a perpetual inventory system and an HST rate of 13%.
Below are selected transactions of Diya Automotive Company during 2022.
Aug. 1 Diya Automotive Company bought $9,200 of merchandise inventory, a new factory machine for $2,600 and office supplies for $800 from a supplier. (All plus HST of 13% on account).
Aug. 15 Diya returned $1,000 of the merchandise inventory to the supplier.
Sept. 1 Diya sold merchandise inventory costing $750 for $1,300 (plus HST of 13%) to Lily Peng on account.
Sept. 15 Lily Peng returned $300 from the Sept.1 sale. The cost of the returned items was $150 and they were returned to inventory.
Oct. 1 Diya purchased $1,200 of office equipment (plus HST of 13%) from Staples on account.
Prepare all the necessary
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