Furniture R Us (Furniture) Inc., located in Sudbury, Ontario, sells office furniture to local businesses in Ontario.
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Question:
Furniture "R" Us (Furniture) Inc., located in Sudbury, Ontario, sells office furniture to local businesses in Ontario. Furniture's sales have never been more than $400,000 annually. Furniture has chosen to file its HST returns on a quarterly basis. The following information relates to the first quarter (January to March 2022): | |||||||||||||||||
Excluding HST | |||||||||||||||||
Sales | $77,000 | ||||||||||||||||
Cost of Goods Sold | 27,650 | ||||||||||||||||
Actual Inventory purchases in the quarter | 34,800 | ||||||||||||||||
Salaries | 15,000 | ||||||||||||||||
Interest on loan | 900 | ||||||||||||||||
Capital expenditure | 11,250 | ||||||||||||||||
Required: | |||||||||||||||||
a) Determine the HST owing (or refundable) for the first quarter of 2022, using the QUICK method. As this is an Ontario province the appropriate % is 4.4% (for resale type companies). | |||||||||||||||||
b) Determine the HSTowing (or refundable) for the first quarter of 2022, using the REGULAR method. |
Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
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