ACC400 Assignment 1
cybacatxQuestion 1
As the chief accountant of The Furniture Shop, manufacturers of custom-made furniture for businesses, individuals and property developers of commercial and residential buildings, you are to complete the GST/HST return for the quarter-ended January 31, 2013. The business began November 1, 2008 and is located in North York at 920 Caledonia Road, M6L 2W5. The “BN” number is 763159255. The HST/GST return is due February 28, 2013 for reporting period November 1, 2012 to January 31, 2013.
Required: a) Complete the required GST return.
b) Prepare a computer spreadsheet showing how the balance in each line of the
GST return was calculated. Round all answers to the nearest cent.
c) Prepare Journal entries to record each sales information transaction and the additional information items.
d) Prepare the journal entry to record the payment (refund) of HST/GST due for the year.
Sales information: Invoice amount includes taxes. Assume customers are in Ontario unless otherwise noted.
Invoice Date Invoice # Customer Name Invoice Amount
Nov. 01, 2012 98 Coppi Restaurant – tables / chairs $29,500
Nov. 3, 2012 99 Jonathan Blackwell, consumer sale 1,958
Nov. 9, 2012 100 Cadillac Fairview – Office furniture 13,280
Nov. 15, 2012 101 Metis Indian Reserve – Cupboards 9,760
Dec. 1, 2012 102 Mary Smith, consumer sale (Halifax) 8,415
Dec. 4, 2012 103 Sale of used manufacturing equipment to consumer 989
Dec. 16, 2012 104 Product sale to consumer, Washington Learning Centre 1,805
Dec. 19, 2012 Other Bad debt, Mary Smith (product value) 1,400
Dec. 20, 2012 105 Edmonton Oilers Management, office desks (product value) 2,870
Jan. 07, 2013 CN Returned goods (#98), (product value only) 1,680
Jan. 10, 2013 106 Marmor Property Management – Gift Certificate 1,200
Jan. 12, 2013 107 Canadian Auto Showroom – Wall units subject to 15% 7,200
Volume discount (product value)
Jan. 22, 2013 108 Anna Li, re-sanding & re-finishing of consumer’s kitchen 1,930
Jan. 28, 2013 Other Recovery of a Prior bad debt 615
Purchase information: Invoice amount excludes taxes if applicable.
Invoice Date Purchase Description Invoice Amount
Nov. 01, 2012 Accounting fees $795
Nov. 07, 2012 Rent for business location (Nov – Jan) 3,900
Nov. 08, 2012 Computer purchased for office, 30% personal use 1,500
Nov. 09, 2012 Parking expenses paid while visiting clients 30
Nov. 11, 2012 Business Entertainment expenses (taxes included) 428
Nov. 19, 2012 Loan interest expense 1,250
Purchase information: Invoice amount excludes taxes if applicable. (continued)
Invoice Date Purchase Description Invoice Amount (All applicable taxes excluded)
Dec. 01, 2012 Purchase of goods for re-sale while on a business trip
in Quebec; goods brought back to Ontario 2,500
Dec. 05, 2012 Coupon reimbursement to a Retailer 3,100
Dec. 10, 2012 Bell internet service bill 421
Dec. 15, 2012 Wallanesa Insurance Brokers (Prepaid insurance for factory for year) 10,000
Dec. 16, 2012 Free cupboard samples for customers 1,685
Dec. 19, 2012 Paid retailers for coupon reimbursement 925
Jan. 02, 2013 Purchase of goods for re-sale from New York, USA
(Purchase price in Can. $2,900, Assessed Cdn. Equivalent $2,850)
Jan. 03, 2013 Courier services paid to send products to Ontario customer 419
Jan. 04, 2013 Maintenance expenses – factory equipment 2,500
Jan. 15, 2013 Cleaning services for factory and office 850
Jan. 21, 2013 Purchase of Machinery, 55% business use 6,100
Additional information:
- In January 2013, the CEO took a display cabinet to his home for personal use – product value was $1,800
- Installments of $1,100 were made to the CRA in November for HST.
- In January 2013, the CEO transferred a computer received as a gift from family to the business. The original value of the computer was $1,300. Current FMV is $1,200 (including taxes).
Question 2 Fed. & Prov.
Annual Salary Claim Code
Employee, Jane Bowens $35,250.00 to be determined
Employee, Marco Scuttaro $68,140.00 to be determined
Required—using the 2013 Payroll Deduction Guides that have been provided to you & the TD1 tax credit forms posted on blackboard:
1. Calculate the Federal & Provincial tax credits based on the following information and determine the claim code
for income tax deduction purposes: Show your calculations.
Jane Bowens Marco Scuttaro
a) Married; spouse has net income of $15,600 Single, Age 39; supports 1 child age 9
b) Jane’s age – 65, Spouse’s Age – 67 Part time student, Seneca College, 6 months
c) Non-government Pension income - $3,200 Tuition fees $2,900
- Calculate gross pay, CPP deduction, EI deduction, Federal Taxes, Ontario Taxes for Jane & Marco for January 31, 2013.
- Pay Period type: Bi-weekly
4. Prepare the payroll Journals by Employee & Total Company for the month of January.
5. Calculate the Payroll tax deductions (business & employee) that will be payable to CRA on
February 15, 2013.
6. Prepare the Journal Entries to record the payroll and the payroll withholdings tax payment to CRA.
11 years ago
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