Prepare general journal entries for the following four transactions for Entity Ltd. In this question GST is applicable; the NZ rate of GST is 15%. Entity Ltd uses the perpetual inventory system. For this question, you are not provided with enough information to prepare the journal entry to recognise COGS. Description of transaction: Transact ion 1 Invoice total = GST inclusive Cost of inventory = GST exclusive $3 752 Credit purchase of inventory 2 Cash purchase of inventory 3 Credit sales 4 Cash sales Ensure you read how to 'round' before you prepare the general journal entries. $4 315 $6 711 Sales amount = GST exclusive $5 836
Prepare general journal entries for the following four transactions for Entity Ltd. In this question GST is applicable; the NZ rate of GST is 15%. Entity Ltd uses the perpetual inventory system. For this question, you are not provided with enough information to prepare the journal entry to recognise COGS. Description of transaction: Transact ion 1 Invoice total = GST inclusive Cost of inventory = GST exclusive $3 752 Credit purchase of inventory 2 Cash purchase of inventory 3 Credit sales 4 Cash sales Ensure you read how to 'round' before you prepare the general journal entries. $4 315 $6 711 Sales amount = GST exclusive $5 836
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare general journal entries for the following four transactions for Entity Ltd. In this
question GST is applicable; the NZ rate of GST is 15%. Entity Ltd uses the perpetual
inventory system. For this question, you are not provided with enough information to prepare
the journal entry to recognise COGS.
Description of transaction:
Transact
ion
1
Credit purchase of inventory
2
Cash purchase of inventory
3
Credit sales
4
Cash sales
Ensure you read how to 'round" before you prepare the general journal entries.
Invoice total
= GST inclusive
$4 315
$6 711
Cost of inventory
= GST exclusive
$3 752
Sales amount
= GST exclusive
$5 836
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