Accounting Journalizing Purchases and Cash Payments February 9,2012.
Journalizing HST – General Journal: Ex. 5 p. 217 (t), p. 138-139 (w)
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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 shown below. The rate for HST is 13%. The next page number in the journal is 7.
description
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. Transactions. 4 Sales Invoice - PowerPoint PPT Presentation
Transcript of Journalizing HST – General Journal: Ex. 5 p. 217 (t), p. 138-139 (w)
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.
Transactions
4 Sales Invoice No. 571, to R. Chevrier for photo services, $275.00 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)
Account Title & ExplanationPR
Nov 4 A/R- R. Chevrier 3 1 0 75 Fees Earned 2 7 5 - HST Payable 3 5 75To record sale on account
Date Debit Credit
Page 72012
Debit accounts Listed First
6 Purchase Invoice No. 7943, from Black’s Photo for photo supplies, $265.00 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)
Account Title & ExplanationPR
Nov 4 A/R- R. Chevrier 3 1 0 75 Fees Earned 2 7 5 - HST Payable 3 5 75To record sale on account
6 Photo Supplies 2 6 5 -HST Recoverable 3 4 45 A/P- Black's Photo 2 9 9 45To record purchase of supplies on account
Date Debit Credit
Page 72012
9 Purchase InvoiceNo. 2332, from Jack’s Auto for regular maintenance of the company car, $175.00 plus HST of $22.75, total 197.75
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)
Account Title & ExplanationPR
Nov 4 A/R- R. Chevrier 3 1 0 75 Fees Earned 2 7 5 - HST Payable 3 5 75To record sale on account
6 Photo Supplies 2 6 5 -HST Recoverable 3 4 45 A/P- Black's Photo 2 9 9 45To record purchase of supplies on account
9 Car Expense 1 7 5 -HST Recoverable 2 2 75 A/P- Jack's Auto 1 9 7 75To record car expense on account
Date Debit Credit
Page 72012
10 Cheque CopyNo. 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)
Account Title & ExplanationPR
10 W. Siebert, Drawings 9 2 5 - Bank 9 2 5 -To record owner withdrawal
Date Debit Credit
Page 72012
12 Cash Sales SlipNo. 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)
Account Title & ExplanationPR
10 W. Siebert, Drawings 9 2 5 - Bank 9 2 5 -To record owner withdrawal
12 Bank 1 6 3 85 Fees Earned 1 4 5 - HST Payable 1 8 85To record sale for cash
Date Debit Credit
Page 72012
15 Bank Debit MemoFrom 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)
Account Title & ExplanationPR
10 W. Siebert, Drawings 9 2 5 - Bank 9 2 5 -To record owner withdrawal
12 Bank 1 6 3 85 Fees Earned 1 4 5 - HST Payable 1 8 85To record sale for cash
15 Bank Charges Expense 3 5 50 Bank 3 5 50To record bank service charges
Date Debit Credit
Page 72012
22 Cash ReceiptRemittance Slip No. 312, showing the receipt of $412.00 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)
Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
Date Debit Credit
Page 82012
23 MemorandumFrom 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)
Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
23 W. Siebert, Drawings 7 5 - Photo supplies 7 5 -To record photo supplies taken by owner
Date Debit Credit
Page 82012
25 Cheque CopyNo. 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)
Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
23 W. Siebert, Drawings 7 5 - Photo supplies 7 5 -To record photo supplies taken by owner
25 A/P- Black's Photo 2 9 9 45 Bank 2 9 9 45To record payment to A/P- Black's Photo
Date Debit Credit
Page 82012
28 Purchase InvoiceNo. 55521, received from Oakley Motors for body repairs on the business automobile, $750.00 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)
Account Title & ExplanationPR
Nov 22 Bank 4 1 2 - A/R- H. Walker 4 1 2 -To record payment received from H. Walker
23 W. Siebert, Drawings 7 5 - Photo supplies 7 5 -To record photo supplies taken by owner
25 A/P- Black's Photo 2 9 9 45 Bank 2 9 9 45To record payment to A/P- Black's Photo
28 Car Expense 7 5 0 -HST Recoverable 9 7 50 A/P- Oakley Motors 8 4 7 50
Date Debit Credit
Page 82012
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 Payable HST Recoverable
DR CR DR CR
35.75 (1)18.85 (5)54.60
(2 ) 34.45 (3 ) 22.75 ( 10) 97.50
154.70
Clearing an account balance
• This means to bring the account to zero.
HST PayableDR CR
35.75 (18.85 (54.60
HST Recoverable
DR CR( ) 34.45 ( ) 22.75 ( ) 97.50
154.70
BankDR CR
54.60
0 154.70
0
154.70 54.60
100.10
A typical HST remittance journal entry
Account Title & ExplanationPR
Dec 31 HST Payable 5 4 60Bank 1 0 0 10 HST Recoverable 1 5 4 70To record HST refund
Date Debit Credit
Wayne Siebert PhotographyBalance Sheet
December 31, 2012 (pay the next month)
Liabilities (SECTION ONLY)Bank Loan XXXXXAccounts Payable XXXXXHST Payable $54.60Less: HST Recoverable 154.70Refund 100.10Total Liabilities XXXXX
If HST Payable is greater than HST Recoverable
Wayne Siebert PhotographyBalance Sheet
December 31, 2012 (pay the next month)
Liabilities (SECTION ONLY)Bank Loan XXXXXAccounts Payable XXXXXHST Payable $154.60Less: HST Recoverable 54.50Remittance 100.10Total Liabilities XXXXX
Start Exercise #6A p. 218-219 (t), p. 140-141 (w)
• 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. 228-232 (t) & define the following terms: Posting, Cross-referencing & Forwarding
