Question
Mr. E. Terry, an engineer, begins a small consulting business. The accounts for the firm are as follows: Bank Automobile HST Payable Bank Charges Expense
Mr. E. Terry, an engineer, begins a small consulting business. The accounts for the firm are
as follows:
Bank
Automobile
HST Payable
Bank Charges Expense
A/R-various
Equipment
E. Terry, Capital
Miscellaneous Expense
Office Supplies
A/P-various
E. Terry, Drawings
Rent Expense
Office Furniture
HST Recoverable
Fees Earned
Telephone Expense
Journalize the transactions shown below in the two-column general journal on the following page. Calculate and add the GST and PST on all sales transactions. The rate for HST is 13% for this assignment. Please provide explanations. The next page number of the journal is 27.
July 3 Cheque Copy
No. 105, Chambers Bros., payment for monthly rent $450 plus HST.
5 Purchase Invoice
From Glen Printing, $86.50 for office supplies plus HST.
8 Sales Invoice
No. 50 to J. Greenley, $250 for services performed, plus HST.
10 Cash Receipt
From R. Grieve, $200 payment on account.
18 Cash Sales Slip
No. 100 to E. Webb, $85.50 plus HST.
20 Cheque Copy
No. 106 to E. Terry, $490 for personal use.
24 Bank Debit Memo
$25.60 for bank service charge.
29 Cheque Copy
No. 107 to Star Blueprinting, $500 on account.
29 Cheque Copy
No. 108 to Municipal Telephone for payment of telephone bill, $200 plus HST.
31 Cheque Copy
The balances in the HST accounts for the previous period were: HST Recoverable $890 and HST Payable $1 410. Cheque 109 was written to the Receiver General for $520 to clear the accounts for that period.
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