General Journal

Date Details/Particulars Account # Debit Credit

1-May Bank Account (Cash) 110 $ 60,000.00
Capital 300 $ 60,000.00
Owner invests $60,000 into the startup of the business

1-May Expense (Rent) 610 $ 1,800.00

Bank Account 110 $ 1,800.00
Rent of $1,800 is paid in cash.

4-May Renovation Supplies 130 $ 1,500.00

HST Paid 280 $ 195.00
A/P - Mitchells 210 $ 1,695.00
$1,500 (plus tax) of renovation supplies are purchased from
Mitchell’s Suppliers on account (A/P.)

4-May Equipment 150 $ 3,500.00

HST Paid 280 $ 455.00
Bank Account (Cash) 110 $ 3,955.00
$3,500 (plus tax) of computer equipment is purchased in cash.

5-May Petty Cash 115 $ 500.00

Bank Account 110 $ 500.00

6-May Office Supplies 140 $ 350.00

HST Paid 280 $ 45.50
Accounts Payable A/P - Staples 210 $ 395.50

8-May Expense 610 $ 700.00

HST Paid 280 $ 91.00
Bank Account 110 $ 791.00

11-May Accounts Receivable 120 $ 8,362.00

HST Received 290 $ 962.00
Revenue 410 $ 7,400.00

12-May Bank Account 110 $ 4,746.00

HST Received 290 $ 546.00
Revenue 410 $ 4,200.00

15-May Wages Expense 620 $ 10,250.00

Bank Account 110 $ 10,250.00

19-May Bank Account 110 $ 621.50

HST Received 290 $ 71.50
Revenue 410 $ 550.00

19-May Bank Account 110 $ 8,362.00

Accounts Receivable 120 $ 8,362.00

22-May Expenses 610 $ 235.00

HST Paid 280 $ 30.55
Bank Account 110 $ 265.55

25-May Accounts Receivable 120 $ 2,141.35

 HST Received 290 $ 246.35
Revenue 410 $ 1,895.00

25-May Accounts Payable 210 $ 395.50

Bank Account 110 $ 395.50

26-May Bank Account 110 $ 20,000.00

Loans Payable 230 $ 20,000.00

29-May Wages Expense 620 $ 10,250.00

Bank Account 110 $ 10,250.00

29-May Bank Account 110 $ 300.00

Accounts Receivable 120 $ 300.00

29-May Expense 610 $ 82.50

Bank Account 110 $ 82.50

134,912.90 $ 134,912.90
 T-Accounts

110 - Bank Account 115 - Petty Cash 120 - A/R 130 - Reno Supplies 140 - Office Supplies 150 - Equipment 160 - Buildings
$ 60,000.00 Capital $ 500.00 $ 8,362.00 $ 1,500.00 $ 350.00 $ 3,500.00
$ 1,800.00 Rent $ 8,362.00
$ 3,955.00 Comp. Equip. $ 2,141.35
$ 500.00 Petty Cash $ 395.00
$ 791.00 Insurance $ 300.00
$ 4,746.00 Invoice
$ 10,250.00 Wages
$ 621.50 Cash Sale
$ 8,362.00 Inv. Paid
Assets

$ 265.55 Phone
$ 395.50 Staples
$ 20,000.00 Loan
$ 10,250.00 Wages
$ 300.00 Partial Pay
$ 82.50 Mileage

210 - A/P 220 - Notes Payable 230 - Loans Payable 280 - HST Paid 290 - HST Received
$ 1,695.00 $ 20,000.00 $ 195.00 $ 962.00
$ 395.50 $ 455.00 $ 546.00
Liabilities

$ 395.50 $ 45.50 $ 71.50

$ 91.00 $ 246.35
$ 30.55

300 - Capital 310 - Draws 320 - Dividends

$ 60,000.00
Capital

410 - Revenue
$ 7,400.00
$ 4,200.00
Revenue

$ 550.00
$ 1,895.00

610 - Expenses 620 - Wages Expense

$ 1,800.00 $ 10,250.00
$ 700.00 $ 10,250.00
Expenses

$ 235.00
$ 82.50
 General Ledger
110 Bank Account
2023 Debit Credit Balance
May 1 Initial investment $ 60,000.00 $ 60,000.00
12 Received payment for work completed $ 4,746.00 $ 64,746.00
19 Customer paid cash for supplies $ 621.50 $ 65,367.50
19 Received payment for work completed $ 8,362.00 $ 73,729.50
25 Received bank loan $ 20,000.00 $ 93,729.50
29 Received partial payment $ 300.00 $ 94,029.50
1 Rent $ 1,800.00 $ 92,229.50
4 Computer equipment $ 3,955.00 $ 88,274.50
5 Established petty cash $ 500.00 $ 87,774.50
8 Paid insurance fee $ 791.00 $ 86,983.50
15 Paid staff wages $ 10,250.00 $ 76,733.50
22 Paid Bell Canada bill $ 265.55 $ 76,467.95
26 Paid Staples bill $ 395.50 $ 76,072.45
29 Paid staff wages $ 10,250.00 $ 65,822.45
29 Paid mileage $ 82.50 $ 65,739.95

115 Petty Cash

2023 Debit Credit Balance
May 5 Established petty cash $ 500.00 $ 500.00

120 Accounts Receivable

2023 Debit Credit Balance
May 11 Customer billed for reno work $ 8,362.00 $ 8,362.00
25 Customer billed for reno work $ 2,141.35 $ 10,503.35
19 Paid bill in full $ 8,362.00 $ 2,141.35
29 Partial payment received $ 300.00 $ 1,841.35

130 Renovation Supplies

2023 Debit Credit Balance
May 4 Purchased reno supplies $ 1,500.00 $ 1,500.00

140 Office Supplies

2023 Debit Credit Balance
May 6 Purchased office supplies $ 350.00 $ 350.00
 150 Equipment
2023 Debit Credit Balance
May 4 Purchased computer equipment $ 3,500.00 $ 3,500.00

160 Buildings
2023 Debit Credit Balance
May

210 Accounts Payable

2023 Debit Credit Balance
May 4 Purchased reno supplies $ 1,695.00 -$ 1,695.00
6 Purchased office supplies $ 395.50 -$ 2,090.50
26 Paid off office supplies in full $ 395.50 -$ 1,695.00

220 Notes Payable

2023 Debit Credit Balance
May

230 Loans Payable

2023 Debit Credit Balance
May 25 Received bank loan $ 20,000.00 -$ 20,000.00

280 HST Paid

2023 Debit Credit Balance
May 4 $ 195.00 $ 195.00
4 $ 455.00 $ 650.00
6 $ 45.50 $ 695.50
8 $ 91.00 $ 786.50
 22 $ 30.55 $ 817.05

290 HST Received

2023 Debit Credit Balance
May 11 $ 962.00 -$ 962.00
12 $ 546.00 -$ 1,508.00
19 $ 71.50 -$ 1,579.50
25 $ 246.35 -$ 1,825.85

300 Capital
2023 Debit Credit Balance
May 1 Initial investment $ 60,000.00 -$ 60,000.00

310 Draws
2023 Debit Credit Balance
May

320 Dividends
2023 Debit Credit Balance
May

410 Revenue
2023 Debit Credit Balance
May 11 Customer billed for reno work $ 7,400.00 -$ 7,400.00
12 Customer paid cash for reno work $ 4,200.00 -$ 11,600.00
19 Customer bought reno supplies $ 550.00 -$ 12,150.00
25 Customer billed for reno work $ 1,895.00 -$ 14,045.00

610 Expenses
2023 Debit Credit Balance
May 1 Rent $ 1,800.00 $ 1,800.00
8 Insurance $ 700.00 $ 2,500.00
22 Bell Canada $ 235.00 $ 2,735.00
29 Mileage $ 82.50 $ 2,817.50

620 Wages Expense

2023 Debit Credit Balance
May 15 Paid staff wages $ 10,250.00 $ 10,250.00
29 Paid staff wages $ 10,250.00 $ 20,500.00
 Trial Balance
Description Account Debit Credit
Bank Account 110 $ 65,739.95
Petty Cash 115 $ 500.00
Accounts Receivable (A/R) 120 $ 1,841.35
Renovation Supplies 130 $ 1,500.00
Office Supplies 140 $ 350.00
Equipment 150 $ 3,500.00
Buildings 160
Accounts Payable (A/P) 210 -$ 1,695.00
Notes Payable 220
Loans Payable 230 -$ 20,000.00
HST Paid 280 $ 817.05
HST Received 290 -$ 1,825.85
Capital 300 -$ 60,000.00
Draws 310
Dividends 320
Revenue 410 -$ 14,045.00
Expenses 610 $ 2,817.50
Wages Expense 620 $ 20,500.00

Totals: $ 97,565.85 -$ 97,565.85 <- must balance!

CHART OF ACCOUNTS
COA
Assets debit accounts
110 Bank Account
115 Petty Cash
120 Accounts Receivable (A/R) payments collected from customers
130 Renovation Supplies (Inventory)
140 Office Supplies
150 Equipment
160 Buildings
Liabilities credit accounts
210 Accounts Payable (A/P) payments due to suppliers
220 Notes Payable
230 Loans Payable
280 HST Paid (Expenses - DR) Refund from CRA (Receivable)
290 HST Received (Sales - CR) Owed to CRA (Payable)
Capital credit accounts
300 Capital
310 Draws
320 Dividends
Revenue credit accounts
410 Revenue
Expenses debit accounts
610 Expenses
620 Wages Expense
 Sales Tax Example

300 - HST Paid Expenses 310 - HST Received Revenues

Dr 156 Cr Dr 39 Cr

HST Received - HST Paid = Difference is paid to CRA, or refunded by CRA

Therefore, $39 - $156 = $117 Debit Balance indicates a refund by CRA

4-Nov Cash 339.00

HST Received 39.00
Revenue - business sign 300.00
Three Ladies revenue

30-Nov Telephone Expense 1,200.00

HST Paid 156.00
Cash 1,356.00
Paid telephone costs for month of November