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 $225 plus GST and PST.
	5		Paid $670 cash plus GST and PST to have the office painted. Use the Repairs Expense account.
	10		Purchased photocopy paper for $230 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 $5,600 and the appropriate sales taxes were added to the fee billed.
	15		Collected $952 on account. This included accounting services of $850, GST of $43, and PST of $60.
	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 TELUS for telephone service for the month of June. The invoice is for $185 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 $1,980.50 and GST Recoverable $749.60.
	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 $2,670.

Answer 1

month June PAGEN DATE Dode Entry Ol-Ant Cr- Amt I Corunes charges Alcod. $225.00 ) PSTALO Dr Recoverable $15.75 - GST AL Dri - $11.25 nail $252.0 1o To CashAkh grovha Being paid Courier charges and accorinted Gst & PST in Cash but Office Repairs A/c Dr. $670 Aron ss PSTAICC Recoverable) Dr $46.goolitat GST AIC - Dr. $3350 A Lo To Cash Me A r $750.40 (Being pagd office repairs picavating work charges) 10 Prating&stationery Al Dr. $205.37 PST AC Recoverable Dr $14.36 Tu GST AL 11 ) Dr.$10.2014 1 I Tosundry Grediton Ak " AT $230.01 Is-FOS Vendon All -rol ), shrust Sundry Debtors Alam Dy$5600.00 (Client Alc) To Professional fee -sale Ale w $500w.a TOPSTAL (Pagable) and 121) J$ 350.00 P TO GST Act 1 & 250. (Being rendered professional services and raised bill to client (Name)

month June Date Cash/Bank Al - Dr.$952.o na To Debtors Ale-on Account $850. client als TOPSTON Advencer Alc Recoverthels 6o.a To GST ontdronees Ale €1-) s 42.00 Being collected advances from client . Travel Air Alat Dr. $720.00 PST A Recoverellor SOL A T GST Alel o r. 36.00 Le To Cash Ale s! 1 $501.40 Being paid airline ticket charges to Air! Canada O To Telephone Charges Ale Dr. $185.00 PSTALO Recoverable) Dr. $12.95 GST A C1-) Dr. & 9.25 I To Sundry Grediton TELUSAC $207.20 Being booked telephone charges payable to GUBLEUS for the mont of June) ble the able the Galer GST Payable Ale Dy $1980.50 200 or TO GST Recoverable the oth $149.80 to Cash (Bank-Receive Gener $1230 go Being paid net gst payable to Receiver General for quertev ended Tune) of lidt PST Pruable Al Dr. $2670.00 dos 1. To Cashl Park Al hold $267o.co Being paid PST payable to Revenue ministry for the province of British Columbia.). 30.