CONTINUING PROBLEM Tony Freedman was very happy to see the progress made by using the specialized journals. Effective January 1, 2017, the company obtains an HST number and so begins to charge HST at 13% on all sales made. The company also pays HST from January 1 on all purchases. The special journals used in Tony's company have been modified to include columns for HST, and these can be found in the Study Guide with Working Papers, pages 11-78 to 11-91. The partial January transactions are as follows: 2017 Jan. 3 Received cheque from Carson Engineering Corp. for amount outstanding. 3 Wrote cheque No. 280 to Able Holdings for December, January, and February rent, $1,200 (HST exempt). 3 Bought merchandise on account from Computer Connection (purchase order No. 4016), $2,500, plus HST, terms 3/10, n/30. 3 Paid amount due to Staples (cheque No. 281). 3 Sold $900, plus HST, worth of merchandise to Taylor Golf on credit, sales invoice No. 12690; terms are 2/10, n/30. 3 Charged $5,085, including HST, for cash sales for the week of January 3. 6 Bought merchandise on account from Multi Systems (purchase order No. 4017), $300, plus HST; terms are 3/10, n/30. 6 Bought office supplies on account from Staples (purchase order No. 4018), $200, plus HST; terms are n/30. 9 Issued debit memorandum No. 11 to Computer Connection for merchandise returned from purchase order No. 4016, $300 (remember the HST). A Go 8C Light rain