Life Sport is a HST registrant. The company sells various golf equipment and clothes to consumers, businesses and re-sellers. The business is located at 15 Golden Pond Street, Toronto, Ontario. Their “BN” number is BN#865432183. CRA assigned them a quarterly reporting period. The HST/GST return is due on September 30, 2017 for reporting period Jun. 1, 2017 to Aug. 31, 2017. As their accountant, you are to prepare the required GST/HST return.
Required: Round all answers to the nearest Dollar. –
Prepare the GST/HST Return for the quarter ending Aug.31, 2017.
a. Please provide a detailed back up schedule as reviewed in class. on an EXCEL worksheet
b. Prepare the journal entries to record the payment/refund of GST/HST
c. Prepare journal entries to record January’s Sales transactions plus the Additional information for the month of August 2017.
Purchase information: Invoice amount includes all applicable taxes, unless otherwise stated. Assume customers are in Ontario unless otherwise noted.
Invoice Date Purchase Description Invoice Amount
Jun. 10 Telephone 2,034.00
Jun. 19 Courier charge for delivery to Thornhill Golf Club 135.60
Jul. 5 Purchase various inventory 19,210.00
Jul. 21 Purchase of packaging equipment from a local supplier 6,554.00
Jul. 30 Insurance policy for fire and theft 1,700.00
Aug.2 Business Entertainment—client event 5,424.00
Aug.5 Birthday present to senior vice president’s son 840.00
Aug.8 Reimbursement to employee (No Receipts; Visa card statement only) fo
expenses used for greater than 90% Commercial Activities, including all sales taxes 560.00
Aug.16 Purchase of goods (for re-sale), from Ann Arbor, Michigan
(Assessed Canadian Equivalent is= $1,600) 1,380.00
Additional information for August 2017
1. Life Sport used $1,700 (product value) from inventory to decorate their store. Ignore HST. 2. Life Sport paid a total of $1,350 in installments to CRA for HST in 2017 (Hint Line 110) 3. The owner took $5,000 of inventory cost to his home for personal use.