Leon Cheng is a sole proprietor providing accounting services in the province of British Columbia, where PST is charged at the rate of 7% and GST is at the rate of 5%. Transactions for the business are shown below: June 1 Paid cash to a local courier for the delivery of documents to several clients. The invoice was for $200

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Leon Cheng is a sole proprietor providing accounting services in the province of British Columbia, where PST is charged at the rate of 7% and GST is at the rate of 5%. Transactions for the business are shown below:

June 1 Paid cash to a local courier for the delivery of documents to several clients. The invoice was for $200 plus GST and PST.

5 Paid $800 cash plus GST and PST to have the office painted. Use Repairs Expense.

10 Purchased photocopy paper for $250 from a local stationery store, on account. The store added the appropriate sales taxes to the purchase price.

13 Billed a client for accounting services provided. The fee charged was $4,700 and the appropriate sales taxes were added to the fee billed.

15 Collected $896 on account. This included accounting services of $800, GST of $40, and PST of $56.

22 Paid $720 cash plus applicable taxes to Air Canada for an airline ticket to Ottawa to meet with a client. Airfare is subject to both PST and GST.

30 Received invoice from BC Tel. for telephone service for the month of June. The invoice is for $150 plus GST and PST.

30 Paid the quarterly remittance of GST to the Receiver General. The balances in the accounts were as follows: GST Payable $1,890.50 and GST Recoverable $741.60.

30 Paid the quarterly remittance of PST to the Minister of Revenue for the province of British Columbia. The balance in the PST Payable account was $2,640.00.

Instructions

Prepare the journal entries to record these transactions on the books of Leon Cheng's accounting business?

Related Book For answer-question

Accounting Principles Part 1

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

ISBN: 978-1118306789