Chapter 8: Exercise 4

Using the rates in Figures 8.3 A and 8.3 B, calculate the GST/HST remittance for ach of the following companies:

(a) Singh-Taylor Company is located in Manitoba (a non-participating province) and sells its services only in Manitoba. Using Figure 8.3B, calculate the GST remittance for the first quarter, assuming the total eligible sales (including GST) are $38,000.

(b) Halifax Widgits Company is located in Nova Scotia (a participating province) and sells its goods only in Nova Scotia. Using Figure 8.3A, calculate the HST remittance for the first quarter, assuming the total eligible sales (including HST) are $36,000.

(c) Capital Company is located in Newfoundland and Labrador (a participating province) and sells merchandise in both Newfoundland and Quebec (a non-participating province). During the fourth quarter, the total eligible sales in Newfoundland (including HST) were $16,000 and in Quebec (including GST) were $8,000. (The entire amount of eligible sales subject to the 1% deduction was claimed in the first and second quarters.) Using Figure 8.3A, calculate the GST/HST remittance for the fourth quarter.

(d) Pichit Company is located in New Brunswick (a participating province) and sells its service in both New Brunswick and Nova Scotia (also a participating province) from its New Brunswick store. Using Figure 8.3 B, calculate the HST remittance for the second quarter assuming the total eligible sales (including HST) in New Brunswick were $15,000 and in Nova Scotia were $12,000. (When the remittance was calculated for the first quarter, the 1% deduction was taken on $20,000 of eligible sales.)

Chapter 8: Exercise 4 ( Please update the lines below, PLEASE!!)

Singh-Taylor Company: Manitoba (non-participating)

Eligible sales of service (including GST)________________

x Remittance rate (38,000 x 3.6%)_______________

1% deduction (30,000 x 1%)_______________

Remittance for first quarter_______________________

Capital Company: Newfoundland (participating)

Eligible sales of goods (including GST)_________

Eligible sales of goods (including HST)_______

x Remittance rate (8,000 x 0%)___________

x Remittance rate (16,000 x 5%)___________

Deduction for sales to QC (8,000 x 2.8%)______

1% deduction (30,000 x 1%)___________

Remittance for fourth quarter___________

Pichit Company: New Brunswick (participating)

Eligible sales of goods (including HST)__________

x Remittance rate (27,000 x 10.0%)___________

1% deduction (10,000 x 1%)________________

Remittance for second quarter____________