A) revenue account with a credit balance. B) cost of goods sold account with a debit balance. C) contra revenue account with a debit balance. D) liability account. A) revenue account with a credit balance. B) cost of goods sold account with a debit balance. C) contra revenue account with a debit balance. D) liability account.

Exam 11: Special Journals With Taxes

Following is the Schedule of Accounts Payable for London Warehouse. Considering GST of 5% is charged on each invoice, what is a breakdown of Inventory and GST Paid for each creditor? Schedule of Accounts Payable J. Bentley \ 1,575.00 P. Anders 2,429.70 N. Cassels Total \ 9,013.20

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(Essay)

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Question 1

Correct Answer:

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$\begin{array} { l r r } & \text { Inventory } & \text { GST } \\\text { J. Bentley } & \$ 1,500.00 & \$ 75.00 \\\text { P. Anders } & 2,314.00 & 115.70 \\\text { N. Cassels } & \underline { 4,770.00 } & \underline { 238.50 } \\& \$ 8,584.00 & \$ 429.20\end{array}$

Canada's tax legislation allows the use of the quick method of accounting for GST/HST because

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Question 2

Correct Answer:

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B

The ledger containing all the balance sheet and income statement accounts is the

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Question 3

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A

The normal balance of the HST Collected is

(Multiple Choice)

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Question 4

Determine the amount of cash collected at the time of making a sale of $1,200 worth of merchandise subject to a 6% provincial sales tax plus 5% GST.

(Short Answer)

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Question 5

Why isn't there an entry to HST when a vendor gets paid for an outstanding invoice?

(Essay)

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Question 6

Cynthia's Crystals sold $1,000 worth of crystal plus 5% GST and 8% PST to a charge customer with terms 2/10, n/30. The invoice was paid within terms. The entry to record receipt of payment is

(Multiple Choice)

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Question 7

GST Collected is an owner's equity account with a debit balance.

(True/False)

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Question 8

Match the following terms with their definitions or descriptions.

Controlling account - Accounts Receivable

The revenue earned from the sale of merchandise to customers.

Sales Tax Payable

An account that accumulates sales tax owned.

Credit period

A special journal that records all receipts of cash.

Correct Answer:

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Controlling account - Accounts Receivable

Sales Tax Payable

Credit period

Accounts receivable subsidiary ledger

Credit memorandum

Sales Returns and Allowances

Discount period

Cash receipts journal

Crossfooting

Gross sales

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Question 9

Unlimited Materials sold goods for $1,800 plus 5% GST to a charge customer, terms n/30. Which entry is required to record this transaction (exclude the entry to Cost of Goods Sold and Inventory)?

(Multiple Choice)

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Question 10

The collection of an invoice for $5,000 plus HST of 13% within the 2/10 n/30 discount period was recorded using a 3% discount rather than a 2% discount in both the controlling and subsidiary accounts. This error will cause

(Multiple Choice)

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Question 11

When a debit memorandum for returned merchandise for Moore Co. is recorded, the entry is

(Multiple Choice)

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Question 12

Sales discounts are usually allowed only on

(Multiple Choice)

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Question 13

Determine the payment required for a purchase paid for within the discount period with an invoice price of $5,000 plus 13% HST and credit terms of 2/10, n/30 when $1,500 (before HST) has already been returned for credit. The goods were purchased with freight terms of F.O.B shipping point and freight of $80, which was invoiced and paid separately.

(Essay)

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Question 14

HST collected by the seller increases the seller's total revenue.

(True/False)

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Question 15

Trade discounts are not subject to HST.

(True/False)

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Question 16

PST Payable is a

(Multiple Choice)

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Question 17

Chan Company sold $500.00 of goods to Abdel Company on account, terms 2/10, n/30, and 5% PST. What was the amount of the invoice? (Show your computations.)

(Short Answer)

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Question 18

Bruce's Jewelry bought 50 rings for $10 each on account. The invoice included 13% HST and payment terms of 2/10, n/30. In addition, five rings were later returned prior to payment. The entry to record the purchase would include

(Multiple Choice)

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Question 19

Heidi's Accessories bought 40 necklaces for $10 each on account. The invoice included 5% GST and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include

(Multiple Choice)

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Question 20

Following is the Schedule of Accounts Payable for London Warehouse. Considering GST of 5% is charged on each invoice, what is a breakdown of Inventory and GST Paid for each creditor? Schedule of Accounts Payable J. Bentley \ 1,575.00 P. Anders 2,429.70 N. Cassels Total \ 9,013.20

Canada's tax legislation allows the use of the quick method of accounting for GST/HST because

The ledger containing all the balance sheet and income statement accounts is the

The normal balance of the HST Collected is

Determine the amount of cash collected at the time of making a sale of $1,200 worth of merchandise subject to a 6% provincial sales tax plus 5% GST.

Why isn't there an entry to HST when a vendor gets paid for an outstanding invoice?

Cynthia's Crystals sold $1,000 worth of crystal plus 5% GST and 8% PST to a charge customer with terms 2/10, n/30. The invoice was paid within terms. The entry to record receipt of payment is

GST Collected is an owner's equity account with a debit balance.

Unlimited Materials sold goods for $1,800 plus 5% GST to a charge customer, terms n/30. Which entry is required to record this transaction (exclude the entry to Cost of Goods Sold and Inventory)?

The collection of an invoice for $5,000 plus HST of 13% within the 2/10 n/30 discount period was recorded using a 3% discount rather than a 2% discount in both the controlling and subsidiary accounts. This error will cause

When a debit memorandum for returned merchandise for Moore Co. is recorded, the entry is

Sales discounts are usually allowed only on

HST collected by the seller increases the seller's total revenue.

Trade discounts are not subject to HST.

PST Payable is a

Chan Company sold $500.00 of goods to Abdel Company on account, terms 2/10, n/30, and 5% PST. What was the amount of the invoice? (Show your computations.)

Bruce's Jewelry bought 50 rings for $10 each on account. The invoice included 13% HST and payment terms of 2/10, n/30. In addition, five rings were later returned prior to payment. The entry to record the purchase would include

Heidi's Accessories bought 40 necklaces for $10 each on account. The invoice included 5% GST and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

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