B Koi Inc., a Manitobabased retail business, began operations on February During February, Koi purchased a company vehicle for $ cash and $ of inventory for resale on account.
In February, Koi also sold ie one third of its inventory for $
As a Manitoba company, all of Kois purchases and sales were subject to GST Koi is required to file a GST return with the Canada Revenue Agency quarterly. Kois first GST return covering the period from February to April will be due on May st
Koi is also registered as a vendor under Manitobas Retail Sales Tax RST which requires Koi to charge on the selling price not including GST of all its sales, and remit the RST collected to the Manitoba government the following month. Koi also must pay Manitoba RST on all its purchases, except those that are exempt from the tax. The inventory purchased for resale was exempt from Manitoba Retail Sales Tax.
Koi uses a perpetual inventory costing system.
Required:
i Prepare the journal entries to record the February transactions.
ii How much GST is owedowing refund for February?
iii. How much Manitoba Retail Sales Tax is owed for February.
