If in BC then your client will pay GST/PST upon registration for insurance and will need to disclose the value paid at that time.

Otherwise since the seller is not GST registered than I would suspect there will be no GST to break out - best to check your provincial and insurance requirement to see if similar to BC.

Thanks for replying.  I'm in Alberta. I'm still not sure how to post this entry to show the asset acquired.  A bill was not provided to the seller for the work the corporation did for him so there is no A/R to apply this towards.  If I do a G/L, I would debit the asset account, but what account is credited?

You said it was a trade between trailer and work done for seller of trailer.

You would still record an invoice to the seller along with the GST if your client is a registrant - it doesn't matter if the customer (seller of trailer) is registered or not since your client have to charge it anyway on sales invoice. Post it so that the total of invoice including GST is 7000.00.

The registration document will have the seller's name and address on it so make a copy of it and use that as an invoice from the seller. Enter as a purchase order without GST since the seller is not a registrant.

If you have a clearing account set up as a bank then use that to pay the sales invoice (receipt nbr could be something like A/PContra-Seller's name) and also use the same clearing account to pay the purchase invoice with cheq nbr being something like A/RContra-Seller's name.

If you don't have a clearing account then create one as an asset called Suspense account - this is where in and out entries can be made such as above and also for any transactions that you need to post but not sure yet where to post other side of entry. Set the suspense account to not show on balance sheet if nil balance (I have it set as the first account nbr on Trail balance - that way when I pull up the balance sheet I can see right away if there are items in there that needs to be reconciled)

I am not familiar with Alberta's ruling regarding GST collection when it comes to insuring the trailer. If you have to pay GST then you would declare value of 7000.00 not including GST and claim the GST as an input tax credit.

Hope this helps!