The following selected transactions occurred at Home Staging by Clarissa during the year; sales taxes apply:
Jan. 20. Purchased three living room sofas on account from Sofas R Us, $7,500, terms n/30, for use by Home Staging in show homes.
Feb. 1. Purchased silk plants with a value of $1,500 from Your Green Thumb, for resale to clients.
5. Paid Sofas R Us the amount owed.
Jun. 1. Sued Sofas R Us because a sofa leg collapsed, injuring a real estate agent. The lawyer says Home Staging by Clarissa will likely win the cost of the real estate agent’s time off and compensation for her mental distress, a total of $40,000.
Jul. 1. Issued a deal to customers: if their house does not receive an offer to purchase within 21 days of being staged, Home Staging by Clarissa will reimburse the customer for the staging cost.
31. Total reimbursed to customers for lack of offers to purchase is $1,000 (use Miscellaneous Expense).
31. Home Staging by Clarissa accrued another $5,000 for anticipated reimbursements for sales to July 31 (use Reimbursement Liability).
Aug. 31. Total reimbursed to customers during the month is $2,800.
Journalize the transactions with the following taxes.
a. GST of 5%
b. GST of 5% and PST of 6%
c. HST of 13%
d. GST of 5% and QST of 9.5%