Sunnyside Solar Consultants provided 184000 of consulting se

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.
PST means The Provincial Sales Tax (PST)
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.

PST Rate GST Rate HST Rate* Regions with GST Only Alberta Northwest Territories Nunavut Yukon 5% 5% 5% 5% Regions with GST and PST British Columbia Manitoba Quebec Saskatchewan 7% 8% q.q75% 5% 5% 5% 5% 5% Regions with HST New Brunswick Newfoundland and Labrador** Nova Scotia Ontario Prince Edward Island 13% 15% 15% 13% 14% A Harmonized Sales Tax (HST) is applied in place of PST and GST. HST is the combination of the PST with the GST for a total sales tax. For example, for both New Brunswick and Ontario the ST rate of 8% is combined with the GST of 5%, resulting in an overall HST of 13% *The Newfoundland 2015 budget announced that the rate increases from 13% to 15%, effective January 1, 2016

Solution

Solution:

Journal Entries - Sunny Side Solar Consultant
S. No.	Particulars	Debit	Credit
1	Delton Development located in Nova Scotia:
	Accounts Receivable (Delton Development) Dr	$211,600.00
	To Revenue from consulting		$184,000.00
	To HST Payable (184000*15%)		$27,600.00
	(Being revenue from consulting recorded)
2	Delton Development located in British Columbia:
	Accounts Receivable (Delton Development) Dr	$206,080.00
	To Revenue from consulting		$184,000.00
	To PST Payable (184000*7%)		$12,880.00
	To GST Payable (184000*5%)		$9,200.00
	(Being revenue from consulting recorded)
3	Delton Development located in Prince Edward Island:
	Accounts Receivable (Delton Development) Dr	$209,760.00
	To Revenue from consulting		$184,000.00
	To HST Payable (184000*14%)		$25,760.00
	(Being revenue from consulting recorded)
4	Delton Development located in Alberta:
	Accounts Receivable (Delton Development) Dr	$193,200.00
	To Revenue from consulting		$184,000.00
	To GST Payable (184000*5%)		$9,200.00
	(Being revenue from consulting recorded)