For this assignment, you will journalize several transactions in the general journal for a brand new business, Goldkind Legal Services, a sole proprietorship owned by Barry Goldkind.
To be more precise, you will journalize the below transactions for the new firm using the account names most often associated with each particular transaction. Each transaction is represented by a particular source document. Sales taxes (HST of 13%) must be included with respect to specified sales and purchases. And don't forget to add the line of explanation using the name and i.d. number of the source document indicated. Furthermore, please include the name of the debtor customer or creditor/creditor supplier after A/R or A/P, respectively, where appropriate.
The transactions of the firm for the month of June, 2020, in chronological order, are as follows:
JUNE 2020 TRANSACTIONS
1 Written memo #101, opening entry representing starting bank balance of $6,000, supplies worth $4,000, furniture worth $12,000 and a starting bank loan of $10,000.
4 Sales invoice #101, $800 plus HST, client L. Skywalker for services provided
5 Purchase invoice #101, $300 plus HST, office furniture from The Brick
9 Bank debit memo, $24 (tax exempt), monthly bank service charges
11 Bank credit memo, $450, investment interest earned
14 Cash sales slip #101, $3,000 plus HST for services provided
16 Debit card receipt #101, $50 plus HST, cash purchase of supplies
19 Cheque copy #101, $339, payment of outstanding account to The Brick re: purchase invoice #101
21 VISA credit card receipt #101, $900 plus HST, purchase of office supplies from Staples
22 Cheque copy #102, $5,000, owner withdrawal
25 Cash receipt daily summary, $904 from client L. Skywalker re: sales invoice #101
28 Purchase invoice #102, $30 plus HST, monthly phone bill from Bell Canada
29 Point of sale summary, $2400 plus HST, daily currency, credit card and debit card sales for services provided
30 Interac Online receipt #345, $24,000 to Canada Revenue Agency, quarterly remittance of net HST payable ($44,000 HST Payable, $20,000 HST Recoverable)
.
And please follow proper formatting rules for Grade 11, Chapter 6 general journals.
.
HST REMITTANCE OR REFUND EXERCISE
At the end of June, 2019 the following amounts were sitting in the HST Payable and HST Recoverable accounts for the above business.
Calculate the amount of the remittance owing to the government or the amount of the refund owing to the business at the end of the tax reporting period in each of the following five unique scenarios: