Prepare general journal entries for the following four transactions for Entity Ltd. In thisquestion GST is applicable; the NZ rate of GST is 15%. Entity Ltd uses the perpetualinventory system. For this question, do not prepare the journal entry to recognise the COGS. GST exclusive = the cost of the inventory purchased or the sale price without GSTINVOICECalculate the GST = $100 x 15%Whatever x 4 items $100GST15GST inclusive = total invoice amountTotal payable$115Prepare general journal entries for the following four transactions for Entity Ltd. In thisquestion GST is applicable; the NZ rate of GST is 15%. Entity Ltd uses the perpetualinventory system. For this question, do not prepare the journal entry to recognise the COGS.TransactionType of transaction:Cost of inventory and sale pricewithout GSTInvoice total= GST inclusive= GST exclusiveCredit purchase of inventory$26 00012Credit sale$26 0003Cash purchase of inventory$26 0004Cash sale$26 000

Journal Entry The purpose of preparing the journal entry to enter the required transaction into…

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, do not prepare the journal entry to recognise the COGS.

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, do not prepare the journal entry to recognise the COGS.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 25E

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Question

100%

GST exclusive = the cost of the inventory purchased or the sale price without GST
INVOICE
Calculate the GST = $100 x 15%
Whatever x 4 items $100
GST
15
GST inclusive = total invoice amount
Total payable
$115
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, do not prepare the journal entry to recognise the COGS.
Transaction
Type of transaction:
Cost of inventory and sale price
without GST
Invoice total
= GST inclusive
= GST exclusive
Credit purchase of inventory
$26 000
1
2
Credit sale
$26 000
3
Cash purchase of inventory
$26 000
4
Cash sale
$26 000

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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