DeGroot Limited conducts all its business in a province that has an 8% sales tax as well as the 5% GST, and both taxes are applied on the value of the product or service that is sold. Assume that all of DeGroot’s sales attract both types of tax. Prepare the summary journal entry to record the company’s sales for the month of July, during which customers purchased $37,000 of goods on account.
Answer to relevant QuestionsRefer to the data for DeGroot Limited in BE13-7. Assume now that DeGroot purchased $29,400 of merchandise inventory in July on which 5% GST was levied. DeGroot uses the periodic inventory system. Prepare the summary entry to ...The incomplete income statement of Perreault Corp. follows. The employee profit-sharing plan requires that 20% of all profits remaining after the deduction of the bonus and income taxes be distributed to the employees by the ...Three independent situations follow. Situation 1: Marquart Stamp Corporation records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. The stamps can be collected and ...Financial information for Cao Inc. follows. Income Statement For the Year Ended December 31, 2011 Instructions (a) Calculate the following ratios or relationships of Cao Inc. Assume that the ending account balances are ...The Hwang Candy Corporation offers a CD as a premium for every five chocolate bar wrappers that customers send in along with $2.00. The chocolate bars are sold by the company to distributors for $0.30 each. The purchase ...
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