journalizing hst – general journal: ex. 5 p. 201 (t), p. 103 (w)
DESCRIPTION
Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w). Journalize these transactions in a two-column general journal, using the accounts shown below. The rate for HST is 13%. The next page number in the journal is 7. Transactions. 4 Sales Invoice - PowerPoint PPT PresentationTRANSCRIPT
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Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)
Journalize these transactions in a two-column general journal, using the accounts shown below. The rate for HST is 13%. The
next page number in the journal is 7.
![Page 2: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/2.jpg)
Transactions
4 Sales Invoice No. 571, to R. Chevrier for photo services, $275.00 plus HST of $35.75, total $310.75
What accounts are affected?• A/R- R. Chevrier will be debit (asset increase)• Fees Earned will be credit (Revenue increase)• HST Payable will be credit (collected from
customer)
![Page 3: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/3.jpg)
Account Title & ExplanationPR
Nov 4 A/R- R. Chevrier 3 1 0 75 Fees Earned 2 7 5 - HST Payable 3 5 75To record sale on account
Date Debit Credit
Page 72012
Debit accounts Listed First
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6 Purchase Invoice No. 7943, from Black’s Photo for photo supplies, $265.00 plus HST of 34.45, total $299.45
What accounts will be affected?• Photo Supplies will be debited (assets increase)• HST Recoverable will be debited (paid HST on asset)• A/P- Black’s Photo will be credited (purchased on
account)
![Page 5: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/5.jpg)
Account Title & ExplanationPR
Nov 4 A/R- R. Chevrier 3 1 0 75 Fees Earned 2 7 5 - HST Payable 3 5 75To record sale on account
6 Photo Supplies 2 6 5 -HST Recoverable 3 4 45 A/P- Black's Photo 2 9 9 45To record purchase of supplies on account
Date Debit Credit
Page 72012
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9 Purchase InvoiceNo. 2332, from Jack’s Auto for regular maintenance of the company car, $175.00 plus HST of $22.75, total 197.75
What accounts will be affected?• Car Expense will be debited (expense increases)• HST recoverable will be debited (recover tax for
business)• A/P- Jack’s Auto will be credited (paid on account)
![Page 7: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/7.jpg)
Account Title & ExplanationPR
Nov 4 A/R- R. Chevrier 3 1 0 75 Fees Earned 2 7 5 - HST Payable 3 5 75To record sale on account
6 Photo Supplies 2 6 5 -HST Recoverable 3 4 45 A/P- Black's Photo 2 9 9 45To record purchase of supplies on account
9 Car Expense 1 7 5 -HST Recoverable 2 2 75 A/P- Jack's Auto 1 9 7 75To record car expense on account
Date Debit Credit
Page 72012
![Page 8: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/8.jpg)
10 Cheque CopyNo. 652, issued to the owner for his own use, $925.00
What accounts will be affected?• W. Seibert, drawings will be debited (owner’s
equity decreases)• Bank will be credited (assets decreases)
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Account Title & ExplanationPR
10 W. Siebert, Drawings 9 2 5 - Bank 9 2 5 -To record owner withdrawal
Date Debit Credit
Page 72012
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12 Cash Sales SlipNo. 214, for photo work performed, $145.00, plus HST of $18.85, total $163.85
What accounts will be affected?• Bank will be debit (asset increases)• Fees earned will be credited (Revenue increases)• HST Payable will be credited (Collected from
customer)
![Page 11: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/11.jpg)
Account Title & ExplanationPR
10 W. Siebert, Drawings 9 2 5 - Bank 9 2 5 -To record owner withdrawal
12 Bank 1 6 3 85 Fees Earned 1 4 5 - HST Payable 1 8 85To record sale for cash
Date Debit Credit
Page 72012
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15 Bank Debit MemoFrom Commercial Bank for bank service charges, $35.50, which are HST exempt
What accounts will be affected?• Bank Charges Expense (expense increases)• Bank will be credited (asset decreases)
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Account Title & ExplanationPR
10 W. Siebert, Drawings 9 2 5 - Bank 9 2 5 -To record owner withdrawal
12 Bank 1 6 3 85 Fees Earned 1 4 5 - HST Payable 1 8 85To record sale for cash
15 Bank Charges Expense 3 5 50 Bank 3 5 50To record bank service charges
Date Debit Credit
Page 72012
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22 Cash ReceiptRemittance Slip No. 312, showing the receipt of $412.00 from H Walker on account.
What accounts will be affected?• Bank will be debited (asset increases)• A/R- H. Walker will be credit (asset decreases)
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Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
Date Debit Credit
Page 82012
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23 MemorandumFrom the owner stating that he had taken $75.00 of photo supplies for his personal work at home
What accounts will be affected?• W. Siebert, Drawings will be debited (Drawings
increases)• Photo Supplies will be credited (assets decrease)
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Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
23 W. Siebert, Drawings 7 5 - Photo supplies 7 5 -To record photo supplies taken by owner
Date Debit Credit
Page 82012
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25 Cheque CopyNo. 653, paying for the supplies purchased above on November 6.
What accounts will be affected?• A/P- Black’s Photo will be debited (liabilities
decreases)• Bank will be credited (assets decrease)
![Page 19: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/19.jpg)
Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
23 W. Siebert, Drawings 7 5 - Photo supplies 7 5 -To record photo supplies taken by owner
25 A/P- Black's Photo 2 9 9 45 Bank 2 9 9 45To record payment to A/P- Black's Photo
Date Debit Credit
Page 82012
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28 Purchase InvoiceNo. 55521, received from Oakley Motors for body repairs on the business automobile, $750.00 plus HST of $97.50, total $847.50
What accounts will be affected?• Car expense will be debited (expenses increase)• HST Recoverable will be debited (pay HST)• A/P- Oakley Motors will be credited (liabilities increase)
![Page 21: Journalizing HST – General Journal: Ex. 5 p. 201 (t), p. 103 (w)](https://reader033.vdocuments.mx/reader033/viewer/2022051218/56815ebe550346895dcd42de/html5/thumbnails/21.jpg)
Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
23 W. Siebert, Drawings 7 5 - Photo supplies 7 5 -To record photo supplies taken by owner
25 A/P- Black's Photo 2 9 9 45 Bank 2 9 9 45To record payment to A/P- Black's Photo
28 Car Expense 7 5 0 -HST Recoverable 9 7 50 A/P- Oakley Motors 8 4 7 50
Date Debit Credit
Page 82012
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Remittance
• Now we must prepare to remit November’s HST to Canada Revenue Agency (CRA)
• Calculate Wayne Siebert’s total HST Payable & HST Recoverable
HST Payable HST Recoverable
DR CR DR CR
35.75 (1)18.85 (5)54.60
(2 ) 34.45 (3 ) 22.75 ( 10) 97.50
154.70
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Clearing an account balance
• This means to bring the account to zero.
HST PayableDR CR
35.75 (18.85 (54.60
HST Recoverable
DR CR( ) 34.45 ( ) 22.75 ( ) 97.50
154.70
BankDR CR
54.60
0 154.70
0
154.70 54.60
100.10
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A typical HST remittance journal entry
Account Title & ExplanationPR
Dec 31 HST Payable 5 4 60Bank 1 0 0 10 HST Recoverable 1 5 4 70To record HST refund
Date Debit Credit
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Wayne Siebert PhotographyBalance Sheet
December 31, 2012 (pay the next month)
Liabilities (SECTION ONLY)Bank Loan XXXXXAccounts Payable XXXXXHST Payable $54.60Less: HST Recoverable 154.70Refund 100.10Total Liabilities XXXXX
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If HST Payable is greater than HST Recoverable
Wayne Siebert PhotographyBalance Sheet
December 31, 2012 (pay the next month)
Liabilities (SECTION ONLY)Bank Loan XXXXXAccounts Payable XXXXXHST Payable $154.60Less: HST Recoverable 54.50Remittance 100.10Total Liabilities XXXXX
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Now be sure to complete transaction October 29 for exercise
#6 & hand in when done