Sunnyside Solar Consultants provided $184,000 of consulting services to Delton D

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.

Explanation / Answer

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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General Journal

Debit

Credit

Accounts Receivable

$211,600

Service Revenue

$184,000

HST on Sales (15% of $184,000)

$27,600

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