Question

Sunnyside Solar Consultants provided $184,000 of consulting services to Delton Developments on April 14, 2017, on account. Use the PST rates in Exhibit 10.6.

Required:
Journalize Sunnyside’s April 14 transaction including applicable PST and GST or HST assuming it is located in:
a. Nova Scotia.
b. British Columbia.
c. Prince Edward Island.
d. Alberta

1

Record the consulting fees earned assuming that Delton Developments is located in Nova Scotia.

2

Record the consulting fees earned assuming that Delton Developments is located in British Columbia.

3

Record the consulting fees earned assuming that Delton Developments is located in Prince Edward Island.

4

Record the consulting fees earned assuming that Delton Developments is located in Alberta.

Answer 1

Solution:

1) Record the consulting fees earned assuming that Delton Developments is located in Nova Scotia

Nova Scotia – HST 15%

General Journal	Debit	Credit
Accounts Receivable	$211,600
Service Revenue		$184,000
HST on Sales (15% of $184,000)		$27,600

2) Record the consulting fees earned assuming that Delton Developments is located in British Columbia.

British Columbia – GST 5% and PST 7%

General Journal	Debit	Credit
Accounts Receivable	$206,080
Service Revenue		$184,000
GST on Sales (5% of $184,000)		$9,200
PST on Sales (7% of $184,000)		$12,880

3) Record the consulting fees earned assuming that Delton Developments is located in Prince Edward Island.

Prince Edward Island = HST 15%

General Journal	Debit	Credit
Accounts Receivable	$211,600
Service Revenue		$184,000
HST on Sales (15% of $184,000)		$27,600

4) Record the consulting fees earned assuming that Delton Developments is located in Alberta

Alberta = GST 5%

General Journal	Debit	Credit
Accounts Receivable	$193,200
Service Revenue		$184,000
GST on Sales (5% of $184,000)		$9,200

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