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New Growth Greenhouse Purchases 500 Watering Cans for $1,500 Plus

Question 36

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New Growth greenhouse purchases 500 watering cans for $1,500 plus 13% HST for a total of $1,695.
In the spring New Growth sells these watering cans for $3,000 plus HST for a total of $3,390.
Prepare the following journal entries for:
a the purchase of the watering cans by New Growth
b the sale of the watering cans
c the remittance of the HST

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