Question 1

Flat Tire Company sold tires to a charge customer, including PST and GST. What entry is required to record this transaction?

Accepted Answer

A)  Debit Cash, credit Sales, Debit Cost of Goods Sold, Credit Inventory 
B)  Debit Cash, credit Sales, credit GST Payable, credit PST Payable, Debit Cost of Goods Sold, Credit Inventory 
C)  Debit Accounts Receivable, credit Sales, Debit Cost of Goods Sold, Credit Inventory 
D)  Debit Accounts Receivable, credit Sales, credit GST Payable, credit PST Payable, Debit Cost of Goods Sold, Credit Inventory 
A)  Debit Cash, credit Sales, Debit Cost of Goods Sold, Credit Inventory 
B)  Debit Cash, credit Sales, credit GST Payable, credit PST Payable, Debit Cost of Goods Sold, Credit Inventory 
C)  Debit Accounts Receivable, credit Sales, Debit Cost of Goods Sold, Credit Inventory 
D)  Debit Accounts Receivable, credit Sales, credit GST Payable, credit PST Payable, Debit Cost of Goods Sold, Credit Inventory

Question 2

A characteristic of a schedule of accounts receivable is that

Accepted Answer

A)  it contains a list of vendor names with balances. 
B)  the total is equal to the accounts receivable control account at the end of the month. 
C)  it is prepared at the end of the month. 
D)  Both B and C are correct. 
A)  it contains a list of vendor names with balances. 
B)  the total is equal to the accounts receivable control account at the end of the month. 
C)  it is prepared at the end of the month. 
D)  Both B and C are correct.

Question 3

Determine the amount of cash collected:
Gross sales = $250,000
HST collected = $27,300
Sales Discounts = $6,000
Sales Returns and Allowances = $40,000

Accepted Answer

$231,300 (

Question 4

All controlling accounts must have a

Accepted Answer

A)  revenue ledger. 
B)  general ledger. 
C)  subsidiary ledger. 
D)  journal. 
A)  revenue ledger. 
B)  general ledger. 
C)  subsidiary ledger. 
D)  journal.

Question 5

Explain why the account Provincial Sales Tax Payable is credited when a sale is made subject to that tax?

Accepted Answer

Provincial Sales Tax Payable i

Question 6

Determine the amount of cash collected at the time of making a cash sale of $7,450 worth of merchandise subject to 13% HST.

Accepted Answer

$8,418.50

Question 7

The basic concept of the quick method of accounting for GST/HST is best described as follows:

Accepted Answer

A)  The quick method allows a small company to pay as little tax as possible. 
B)  Only small companies with total sales of less then $150,000 can use the quick method. 
C)  A smaller company will remit about as much tax as they would if detailed records were maintained. 
D)  A small company with large capital purchases should always avoid using the quick method. 
A)  The quick method allows a small company to pay as little tax as possible. 
B)  Only small companies with total sales of less then $150,000 can use the quick method. 
C)  A smaller company will remit about as much tax as they would if detailed records were maintained. 
D)  A small company with large capital purchases should always avoid using the quick method.

Question 8

December 4 Sold merchandise priced at $105 to a cash customer. The cost of goods was $79.
________      ________      ________
________      ________      ________
________      ________      ________

Accepted Answer

Cash 118.65
Sales 10

Question 9

The purpose of the quick method of accounting for GST/HST is to save money.

Accepted Answer

A) True 
 B)False

Question 10

Jackson purchased $400 plus 13% HST of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?

Accepted Answer

A)  $452 
B)  $392 
C)  $400 
D)  $444 
A)  $452 
B)  $392 
C)  $400 
D)  $444

Question 11

Why isn't it a normal practice to give discounts on taxes?

Accepted Answer

The company is just collecting the money

Question 12

On March 30, Francine's Bakery purchased $1,000, plus 13% HST, of merchandise on account from Smithers Company. The goods were shipped F.O.B. shipping point. The freight charge of $80 (includes HST) was paid by Williams Company and added to the invoice. The amount to record in the Inventory account is

Accepted Answer

A)  $1,000. 
B)  $1,130. 
C)  $1,080. 
D)  $1,210. 
A)  $1,000. 
B)  $1,130. 
C)  $1,080. 
D)  $1,210.

Question 13

The credit that a company receives for the GST/HST it pays is called

Accepted Answer

A)  Output Tax Credit. 
B)  Input Tax Credit. 
C)  Business Tax Credit. 
D)  Payroll Tax Credit. 
A)  Output Tax Credit. 
B)  Input Tax Credit. 
C)  Business Tax Credit. 
D)  Payroll Tax Credit.

Question 14

December 16 cash customer returned $35 worth of merchandise. The cost of goods was $27.
________      ________      ________
________      ________      ________
________      ________      ________
________      ________      ________
________      ________      ________

Accepted Answer

Sales Returns and Allowances 3

Question 15

Individual invoice amounts, including HST, are recorded during the month to the accounts payable ledger.

Accepted Answer

A) True 
 B)False

Question 16

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 13% HST. The invoice included HST at 13% and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include

Accepted Answer

A)  a debit to Sales Returns and Allowances for $141.25. 
B)  a debit to Sales Returns and Allowances for $125.00. 
C)  a credit to Sales Tax Payable for $16.25. 
D)  a debit to Accounts Receivable for $141.25. 
A)  a debit to Sales Returns and Allowances for $141.25. 
B)  a debit to Sales Returns and Allowances for $125.00. 
C)  a credit to Sales Tax Payable for $16.25. 
D)  a debit to Accounts Receivable for $141.25.

Question 17

The normal balance for Inventory is

Accepted Answer

A)  a debit. 
B)  a credit. 
C)  zero. 
D)  It does not have a normal balance. 
A)  a debit. 
B)  a credit. 
C)  zero. 
D)  It does not have a normal balance.

Question 18

Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction?

Accepted Answer

A)  Debit Accounts Receivable $420, credit Sales, $420 
B)  Debit Cash, $452, credit Sales, $452 
C)  Debit Cash, $400, credit Accounts Receivable, $400 
D)  Debit Cash, $452, credit Accounts Receivable, $452 
A)  Debit Accounts Receivable $420, credit Sales, $420 
B)  Debit Cash, $452, credit Sales, $452 
C)  Debit Cash, $400, credit Accounts Receivable, $400 
D)  Debit Cash, $452, credit Accounts Receivable, $452

Question 19

Provincial Sales Tax Payable is a

Accepted Answer

A)  liability account with a debit balance. 
B)  liability account with a credit balance. 
C)  contra-asset account with a debit balance. 
D)  contra-asset account with a credit balance. 
A)  liability account with a debit balance. 
B)  liability account with a credit balance. 
C)  contra-asset account with a debit balance. 
D)  contra-asset account with a credit balance.

Question 20

On May 6, R. Rosen purchased merchandise for his camping store. The invoice was for $100,000 plus HST at 13%, terms 2/10, n/30. On May 10, R. Rosen returned merchandise costing $15,000 for credit. On May 15, R. Rosen paid the amount owed, taking all available discounts. Answer the following:
a) The credit to Accounts Payable on May 6 is ________.
b) The debit to HST Paid on May 6 is ________.
c) The debit to Accounts Payable on May 10 is ________.
d) The credit to Inventory on May 15 is ________.
e) The credit to Cash on May 15 is ________.

Accepted Answer

a) $100,000
b) $13,0

Flat Tire Company sold tires to a charge customer, including PST and GST. What entry is required to record this transaction?

A characteristic of a schedule of accounts receivable is that

Determine the amount of cash collected: Gross sales = $250,000 HST collected = $27,300 Sales Discounts = $6,000 Sales Returns and Allowances = $40,000

All controlling accounts must have a

Explain why the account Provincial Sales Tax Payable is credited when a sale is made subject to that tax?

Determine the amount of cash collected at the time of making a cash sale of $7,450 worth of merchandise subject to 13% HST.

The basic concept of the quick method of accounting for GST/HST is best described as follows:

December 4 Sold merchandise priced at $105 to a cash customer. The cost of goods was $79.

The purpose of the quick method of accounting for GST/HST is to save money.

Jackson purchased $400 plus 13% HST of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?

Why isn't it a normal practice to give discounts on taxes?

The credit that a company receives for the GST/HST it pays is called

December 16 cash customer returned $35 worth of merchandise. The cost of goods was $27.

Individual invoice amounts, including HST, are recorded during the month to the accounts payable ledger.

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 13% HST. The invoice included HST at 13% and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include

The normal balance for Inventory is

Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction?

Provincial Sales Tax Payable is a

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

Filters

Exam 11: Special Journals With Taxes

Flat Tire Company sold tires to a charge customer, including PST and GST. What entry is required to record this transaction?

A characteristic of a schedule of accounts receivable is that

Determine the amount of cash collected: Gross sales = $250,000 HST collected = $27,300 Sales Discounts = $6,000 Sales Returns and Allowances = $40,000

All controlling accounts must have a

Explain why the account Provincial Sales Tax Payable is credited when a sale is made subject to that tax?

Determine the amount of cash collected at the time of making a cash sale of $7,450 worth of merchandise subject to 13% HST.

The basic concept of the quick method of accounting for GST/HST is best described as follows:

December 4 Sold merchandise priced at $105 to a cash customer. The cost of goods was $79. ________ ________ ________ ________ ________ ________ ________ ________ ________

The purpose of the quick method of accounting for GST/HST is to save money.

Jackson purchased $400 plus 13% HST of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?

Why isn't it a normal practice to give discounts on taxes?

The credit that a company receives for the GST/HST it pays is called

December 16 cash customer returned $35 worth of merchandise. The cost of goods was $27. ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________

Individual invoice amounts, including HST, are recorded during the month to the accounts payable ledger.

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 13% HST. The invoice included HST at 13% and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include

The normal balance for Inventory is

Singh Company received payment in full within the credit period for goods sold for $400 plus 13% HST. Terms of the sale were n/30. Which entry records this transaction?

Provincial Sales Tax Payable is a

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

Filters

December 4 Sold merchandise priced at $105 to a cash customer. The cost of goods was $79.

December 16 cash customer returned $35 worth of merchandise. The cost of goods was $27.