1. Journalizing HST – General Journal: Ex. 5 p. 217 (t), p. 138-139 (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.
New textbook page 217 ex.#5

2. Transactions 4 Sales Invoice
No. 571, to R. Chevrier for photo services, $ 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)

3. Page 7
2012
Debit accounts Listed First

4. 6 Purchase Invoice
No. 7943, from Black’s Photo for photo supplies, $ 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)

5. Page 7
2012

6. 9 Purchase Invoice
No. 2332, from Jack’s Auto for regular maintenance of the company car, $ plus HST of $22.75, total
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)

7. Page 7
2012

8. 10 Cheque Copy
No. 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)

9. Page 7
2012

10. 12 Cash Sales Slip
No. 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)

11. Page 7
2012

12. 15 Bank Debit Memo
From 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)

13. Page 7
2012

14. 22 Cash Receipt
Remittance Slip No. 312, showing the receipt of $ 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)

15. Page 8
2012

16. 23 Memorandum
From 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)

17. Page 8
2012

18. 25 Cheque Copy
No. 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)

19. Page 8
2012

20. 28 Purchase Invoice
No , received from Oakley Motors for body repairs on the business automobile, $ 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)

21. Page 8
2012

22. 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 Recoverable
HST Payable DR CR DR CR
(2 ) 34.45
35.75 (1)
(3 ) 22.75
18.85 (5)
( 10) 97.50
54.60
154.70

23. Clearing an account balance
This means to bring the account to zero.
Bank
HST Payable
HST Recoverable DR CR DR CR DR CR
( ) 34.45
35.75 (
154.70
54.60
( ) 22.75
18.85 (
( ) 97.50
54.60
54.60
100.10
154.70
154.70

24. A typical HST remittance journal entry

25. Wayne Siebert Photography Balance Sheet December 31, 2012 (pay the next month) Liabilities (SECTION ONLY) Bank Loan XXXXX Accounts Payable XXXXX HST Payable $54.60 Less: HST Recoverable Refund Total Liabilities XXXXX

26. If HST Payable is greater than HST Recoverable
Wayne Siebert Photography Balance Sheet December 31, 2012 (pay the next month) Liabilities (SECTION ONLY) Bank Loan XXXXX Accounts Payable XXXXX HST Payable $ Less: HST Recoverable Remittance Total Liabilities XXXXX

27. Start Exercise #6A p. 218-219 (t), p. 140-141 (w)

28. Complete Ex. 6A p. 218-219 (t), p. 140-141 (w)
Switch with a classmate when done & correct
Use a pen for errors
Put both names on it (identify who did what)
Give a mark out of 10 & hand in
Read 7.1 – Posting p (t) & define the following terms: Posting, Cross-referencing & Forwarding