Journalizing HST – General Journal:
Ex. 5 p. 217 (t), p. 138-139 (w)
Journalize these transactions in a twocolumn 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)
Page 7
2012
Date Account Title & Explanation
Nov
4 A/R- R. Chevrier
Fees Earned
P
R
Debit
3 1 0 75
Credit
2 7 5-
HST Payable
To record sale on account
3 5 75
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)
Page 7
2012
Date Account Title & Explanation
Nov
4 A/R- R. Chevrier
Fees Earned
P
R
Debit
3 1 0 75
2 7 5-
HST Payable
To record sale on account
6 Photo Supplies
HST Recoverable
A/P- Black's Photo
To record purchase of supplies on account
Credit
3 5 75
2653 4 45
2 9 9 45
9 Purchase Invoice
No. 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)
Page 7
2012
Date Account Title & Explanation
Nov
4 A/R- R. Chevrier
Fees Earned
P
R
Debit
3 1 0 75
Credit
2 7 5-
HST Payable
To record sale on account
3 5 75
6 Photo Supplies
HST Recoverable
A/P- Black's Photo
To record purchase of supplies on account
2653 4 45
9 Car Expense
HST Recoverable
A/P- Jack's Auto
To record car expense on account
1752 2 75
2 9 9 45
1 9 7 75
10 Cheque Copy
No. 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)
Page 7
2012
Date Account Title & Explanation
10 W. Siebert, Drawings
Bank
To record owner withdrawal
P
R
Debit
9 2 5-
Credit
9 2 5-
12 Cash Sales Slip
No. 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)
Page 7
2012
Date Account Title & Explanation
10 W. Siebert, Drawings
Bank
P
R
Debit
9 2 5-
Credit
9 2 5-
To record owner withdrawal
12 Bank
Fees Earned
HST Payable
To record sale for cash
1 6 3 85
1 4 51 8 85
15 Bank Debit Memo
From 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)
Page 7
2012
Date Account Title & Explanation
10 W. Siebert, Drawings
Bank
P
R
Debit
9 2 5-
Credit
9 2 5-
To record owner withdrawal
12 Bank
Fees Earned
HST Payable
To record sale for cash
15 Bank Charges Expense
Bank
To record bank service charges
1 6 3 85
1 4 51 8 85
3 5 50
3 5 50
22 Cash Receipt
Remittance 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)
Page 8
2012
Date Account Title & Explanation
Nov 22 Bank
A/R- H. Walker
P
R
To record payment received from H. Walker
Debit
4 1 2-
Credit
4 1 2-
23 Memorandum
From 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)
Page 8
2012
Date Account Title & Explanation
Nov 22 Bank
A/R- H. Walker
P
R
Debit
4 1 2-
Credit
4 1 2-
To record payment received from H. Walker
23 W. Siebert, Drawings
Photo supplies
To record photo supplies taken by owner
757 5-
25 Cheque Copy
No. 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)
Page 8
2012
Date Account Title & Explanation
Nov 22 Bank
A/R- H. Walker
P
R
Debit
4 1 2-
Credit
4 1 2-
To record payment received from H. Walker
23 W. Siebert, Drawings
Photo supplies
To record photo supplies taken by owner
75-
25 A/P- Black's Photo
Bank
To record payment to A/P- Black's Photo
2 9 9 45
7 5-
2 9 9 45
28 Purchase Invoice
No. 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)
Page 8
2012
Date Account Title & Explanation
Nov 22 Bank
A/R- H. Walker
P
R
Debit
4 1 2-
Credit
4 1 2-
To record payment received from H. Walker
23 W. Siebert, Drawings
Photo supplies
To record photo supplies taken by owner
75-
25 A/P- Black's Photo
Bank
To record payment to A/P- Black's Photo
2 9 9 45
28 Car Expense
HST Recoverable
A/P- Oakley Motors
7509 7 50
7 5-
2 9 9 45
8 4 7 50
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
DR
CR
35.75 (1)
18.85 (5)
54.60
HST Recoverable
DR
(2 ) 34.45
(3 ) 22.75
( 10) 97.50
154.70
CR
Clearing an account balance
• This means to bring the account to zero.
HST Payable
DR
54.60
CR
35.75 (
18.85 (
54.60
0
Bank
HST Recoverable
DR
( ) 34.45
( ) 22.75
( ) 97.50
CR
154.70 154.70
0
DR
154.70
100.10
CR
54.60
A typical HST remittance journal entry
Date Account Title & Explanation
Dec 31 HST Payable
Bank
HST Recoverable
To record HST refund
P
R
Debit
5 4 60
1 0 0 10
Credit
1 5 4 70
Wayne Siebert Photography
Balance Sheet
December 31, 2012 (pay the next month)
Liabilities (SECTION ONLY)
Bank Loan
Accounts Payable
HST Payable
$54.60
Less: HST Recoverable 154.70
Refund
Total Liabilities
XXXXX
XXXXX
100.10
XXXXX
If HST Payable is greater than HST
Recoverable
Wayne Siebert Photography
Balance Sheet
December 31, 2012 (pay the next month)
Liabilities (SECTION ONLY)
Bank Loan
Accounts Payable
HST Payable
$154.60
Less: HST Recoverable
54.50
Remittance
Total Liabilities
XXXXX
XXXXX
100.10
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, Crossreferencing & Forwarding