WK Ltd. is located in Halifax, Nova Scotia, which has an HST rate of 15%. WK...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
WK Ltd. is located in Halifax, Nova Scotia, which has an HST rate of 15%. WK has two businesses - they own a large superstore, and they have a rental property that is rented out to individuals for residential purposes. The superstore sells a variety of food products, which also includes basic groceries. WK's income statement for the month of December 2022 is below. Note that HST is not included in any of the amounts listed below. Revenue: Expenses: Net Income Sales Revenue - Groceries Sales Revenue - Other Foods Rental Revenue $2,000,000 $5,200,000 $900,000 Cost of Goods Sold - Groceries Cost of Goods Sold - Other Foods Maintenance Costs - Rental Property $1,400,000 $3,280,000 $585,000 Depreciation Expense $675,000 Salaries & Wages $1,200,000 Interest Costs (Before HST & Income Tax) $75,000 $510,000 Additional Information: (1) During December 2022, the company purchased an office building for $250,000 and office equipment for $50,000. 75% of the building and equipment will be used to manage the superstore, and the remaining 25% is used to manage the rental property. (2) Additional purchases made in the month of December, not included in COGS, were $250,000. (3) Assume WK Ltd. paid HST on all inventory purchases, including groceries. REQUIRED Based on the information above, determine the HST payable or receivable for the month of December. (Assume the company will not self-assess HST on any purchases) WK Ltd. is located in Halifax, Nova Scotia, which has an HST rate of 15%. WK has two businesses - they own a large superstore, and they have a rental property that is rented out to individuals for residential purposes. The superstore sells a variety of food products, which also includes basic groceries. WK's income statement for the month of December 2022 is below. Note that HST is not included in any of the amounts listed below. Revenue: Expenses: Net Income Sales Revenue - Groceries Sales Revenue - Other Foods Rental Revenue $2,000,000 $5,200,000 $900,000 Cost of Goods Sold - Groceries Cost of Goods Sold - Other Foods Maintenance Costs - Rental Property $1,400,000 $3,280,000 $585,000 Depreciation Expense $675,000 Salaries & Wages $1,200,000 Interest Costs (Before HST & Income Tax) $75,000 $510,000 Additional Information: (1) During December 2022, the company purchased an office building for $250,000 and office equipment for $50,000. 75% of the building and equipment will be used to manage the superstore, and the remaining 25% is used to manage the rental property. (2) Additional purchases made in the month of December, not included in COGS, were $250,000. (3) Assume WK Ltd. paid HST on all inventory purchases, including groceries. REQUIRED Based on the information above, determine the HST payable or receivable for the month of December. (Assume the company will not self-assess HST on any purchases)
Expert Answer:
Answer rating: 100% (QA)
To determine the HST payable or receivable for the month of December we need to calculate the HST co... View the full answer
Related Book For
Analyzing Data And Making Decisions Statistics For Business Microsoft Excel 2010 Updated
ISBN: 9780132924962
2nd Edition
Authors: Judith Skuce
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
For each polynomial function, complete the following in order. (a) Use Descartes rule of signs to determine the different possibilities for the numbers of positive, negative, and nonreal complex...
-
1. Describe the functions that communication provides within a group or organization. 2. Do you think there is such a thing as a "team player"? What are the behaviors of such a person? 3. Under what...
-
Heat always flows spontaneously from an object with a higher temperature to an object with a lower temperature. Is this the same as saying that heat always flows from an object with greater internal...
-
One critical-thinking skill is a heightened awareness of the danger of reaching a conclusion prior to acquiring missing information that were it known would have a reasonable probability of altering...
-
Ashley Williams opened Ashleys Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. July 1 Invested $14,000 cash in the business. 1 Purchased a used...
-
A co-worker makes a joke with you about a client, saying they 'dress up' on the days you are on shift. The next week you receive a friend request on a social networking site from that client - do you...
-
Letp be a fixed prime number and x = P, X = p+x, for all n = N the sequence (x) is unbounded decreasing converges to - (1 + 1+4p) converges to (P + 1+4p)
-
Describe the legal, social, and psychological employment contracts in organisations. Citing examples, explain why it is important for HRM to manage each of these three contracts at the workplace....
-
What special compensation and benefits issues arise in international HRM ?
-
Questions should be a minimum of 10 lines of information per question and must be written in "essay" format, and in your 0wn w0rds .This means that information must not be used directly from the...
-
Which of these sales messages has the MOST effective focus on benefits, using a mix of logical and emotional appeals? The Avonics cross-training shoe has a flexible sole, arch support, and padded...
-
Please use the link below for the following three questions. Look up the term "Heckler's Veto." What does this proposed legislation have to do with Heckler's Vetos? What should be the line between...
-
Calculate the pH and concentration of all species in a 0.27 M [math]Na_2so_3[/math] (sodium sulfite) solution? The ionization constants for sulfurous acid are (math]K_{al} = 1.4 x 10^{-2}{/math] and...
-
For a Poisson process of rate , the Bernoulli arrival approximation assumes that in any very small interval of length , there is either 0 arrivals with probability 1- or 1 arrival with probability ....
-
Create an appropriate graph to summarize the "speed of service "rating data for the survey of drugstore customers. Comment on the data.
-
An insurance company with a number of branch offices across the country has designed a diary system for salespeople, which is designed to increase their pro ductivity. The diary system is...
-
Suppose you have a sample of 50 measurements of matched-pairs data, and the histogram of differences is fairly, but not perfectly, normal. The t-test of D leads to a rejection of the null hypothesis,...
-
Prove the second part of Theorem 3.8. That is let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables, \(X\) be a random variable, and \(g\) be a Borel function on \(\mathbb{R}\)....
-
Prove the first part of Theorem 3.7. That is let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables, \(c\) be a real constant, and \(g\) be a Borel function on \(\mathbb{R}\)...
-
Let \(\left\{X_{n}ight\}_{n=1}^{\infty},\left\{Y_{n}ight\}_{n=1}^{\infty}\), and \(\left\{Z_{n}ight\}_{n=1}^{\infty}\) be independent sequences of random variables that converge in probability to the...
Study smarter with the SolutionInn App