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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.

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Presentation on theme: "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."— Presentation transcript:

1 Journalizing HST – General Journal: Ex. 5 p. 217 (t), p (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.

2 Transactions 4 Sales Invoice No. 571, to R. Chevrier for photo services, $ plus HST of $35.75, total $ 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 Debit accounts Listed First

4 6 Purchase Invoice No. 7943, from Blacks Photo for photo supplies, $ plus HST of 34.45, total $ What accounts will be affected? Photo Supplies will be debited (assets increase) HST Recoverable will be debited (paid HST on asset) A/P- Blacks Photo will be credited (purchased on account)

5 Page

6 9 Purchase Invoice No. 2332, from Jacks 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- Jacks Auto will be credited (paid on account)

7 Page

8 10 Cheque Copy No. 652, issued to the owner for his own use, $ What accounts will be affected? W. Seibert, drawings will be debited (owners equity decreases) Bank will be credited (assets decreases)

9 Page

10 12 Cash Sales Slip No. 214, for photo work performed, $145.00, plus HST of $18.85, total $ 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

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

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

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

18 25 Cheque Copy No. 653, paying for the supplies purchased above on November 6. What accounts will be affected? A/P- Blacks Photo will be debited (liabilities decreases) Bank will be credited (assets decrease)

19 Page

20 28 Purchase Invoice No , received from Oakley Motors for body repairs on the business automobile, $ plus HST of $97.50, total $ 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

22 Remittance Now we must prepare to remit Novembers HST to Canada Revenue Agency (CRA) Calculate Wayne Sieberts total HST Payable & HST Recoverable HST Payable HST Recoverable DR CR DR CR (1) (5) (2 ) (3 ) ( 10)

23 Clearing an account balance This means to bring the account to zero. HST Payable DR CR ( ( HST Recoverable DR CR ( ) ( ) ( ) Bank DR CR

24 A typical HST remittance journal entry

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

27 Start Exercise #6A p (t), p (w)

28 Complete Ex. 6A p (t), p (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


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