Question 1 Sales Tax (GST)

Donald S. Business, CPA, offers accounting services in Alberta. To reduce his personal liability, he incorporated under the company name DBs Accounting Services Ltd. When he incorporated he was assigned the Business Number (BN): 789151234 RT 0001. Donald set the corporation up to file GST monthly. Transactions for the business are shown below for the month of January 2021.

January 1 Paid January 2021 rent on a new office space. Monthly rent is $1,500 plus GST.

Jan 4 Purchased and picked up new office furniture to go in his new office, on account, from Leons at a total cost of $2,499 (GST included).

Jan 5 Returned one damaged chair to Leons for a full refund. The cost of the chair before GST was $200.

Jan 6 Stocked up on paper and ink for his printer from Staples, paying $400 plus GST.

Jan 10 Invoiced a client $1,800 plus GST for providing bookkeeping services and preparing her quarterly GST return. The client was very pleased with Donald's work and paid cash immediately.

Jan 13 Invoiced Joes Consulting Ltd. for preparing his corporate tax return. Donalds fee was $2,940 (GST included).

Jan 18 Paid Leons for the furniture purchase of Jan 4, net of returned items.

Jan 25 Collected full payment from Joes Consulting Ltd. for the Jan 13 invoice.

Required:

1) Record the journal entries for the above transactions for DBs Accounting Services Ltd. (22 marks)

2) Post the Service Revenue and GST amounts to the appropriate GST T-Accounts and calculate the ending balances. (You do not need to do all the T-Accounts, just the GST accounts and Service Revenue account). (6 marks)

3) Prepare the GST return for the month of January 2021 and include it with your submission. A blank GST return is also attached in the assignment link, or available on the following page. (9 marks)

(HINT: You will need to fill in the company information at the top of the return as well as lines 101, 103, 105, 106, 108, 109, 113A, 113C, and 114 OR 115.)

4) Prepare the appropriate journal entry to record the GST remittance or refund (whichever is applicable), assuming the cash is paid or received on February 15, 2021.

NOTE: ALREADY POSTED BY SOMEONE PLEASE DO NOT COPY PASTE and i need this before 4:45 please