ACCTG311 Lecture Notes - Lecture 9: Financial Planner, Lump Sum, Time Deposit
25 Nov 2014
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Mike"s mechanical services inc. provides various repair services to individuals and businesses. Mms is 100% owned by mike lantaine who also manages the company. Once a job is complete, mike prepares an invoice for parts and labour and presents it to the customer on site. The year end for the company is december 31: the government requires mms to remit all gst collected, net of gst paid on expenses. Every month mms pays in installments (paid all 12 months). Using the following information, prepare journal entries for 2014 to record the transactions and determine how much gst mms owes at the end of 2014: Gst paid relating to 2013 in 2014 (due to a clerical error, more was paid than needed. The extra was to be applied to 2014) To record sales with 5% gst on them. Final gst owing: (credits will be negatives; debits positives.
