Bestomers Best Balloons is a proprietorship, operating only in Alberta, that is registered to file GST tax
Question:
Bestomer’s Best Balloons is a proprietorship, operating only in Alberta, that is registered to file GST tax returns on an annual basis. Alberta does not participate in the HST program and does not have a provincial sales tax.
The following is a summary of the financial statement information for the current year. All amounts are presented without the inclusion of applicable GST.
Sales $69,000
Fewer Expenses:
Cost Of Goods Sold ($12,000)
Salaries And Wages ( 19,000)
Operating Costs ( 14,500)
Interest On Demand Loan ( 600)
Interest On Mortgage ( 1,100)
Amortization Expense ( 10,000)
Income Taxes ( 2,000) ( 59,200)
Net Income $ 9,800
GST was paid on purchases of balloons and all operating costs. The inventory of balloons at the end of the year was $4,000. The corresponding figure at the beginning of the year was $3,000.
Required:
Calculate the net GST payable or refund that Bestomer’s Best Balloons will remit or receive for the current year.