1. On 1 June year 2019, Harper paid an insurance invoice of $2,400 for the year to 31 May year 2020. What is the charge to the income statement and the entry in the financial statement for the year ended 31 December year 1?

$1,000 income statement and prepayment of $1,400.

$1,400 income statement and accrual of $1,000.

$1,400 income statement and prepayment of $1,000.

$2,400 income statement and no entry in the statement of financial position.

2. In July year 2019, SYSCO company sold goods at GST/HST rate with a net value of $200,000, goods exempt from GST/HST with a value of $50,000 and goods at zero GST/HST rate with a net value of $25,000. The purchases in July year 2019, which were all subject to GST/HST, were $161,000, including GST/HST. Assume that the rate of GST/HST is 15%. The difference between GST/HST input tax and GST/HST output tax is.

A. Dr 9,000

B. Cr 5,850

C. Cr 9,000

D. None of these

3. On 1 March, Bob owed a supplier $1,200. During the month of March, Bob: Purchased goods for $1,700 and the supplier offered a 5% discount for payment within the month. Returned goods valued at $100 which had been purchased in February. Sent a cheque to the supplier for payment of the goods delivered in March. What is the balance on the suppliers account at the end of March?

A. $1,015

B. $1,100

C. $1,185

D. $1,300

4. On 1 May, A pays a rent bill of $1,800 for the twelve months to 30 April. What is the charge/credit to the income statement for the year ended 30 November?

Explain with a general journal entry.

5. Asset total is $40,000 and the equity is 40% of asset. What is the liability amount?

6. Jim purchased a TV for $1,000 + HST (13%) from Egbert Ltd. On June 1 2018 and Payable in 30 days. He paid the full amount on June 20 2018. Please use the T account and show the entries of purchase and the payment.

7. Mr. Brown has a grocery shop. He has file his HST return before for period from Jan to Dec 2018. During this period his sales and expenses are as follows. The amounts are including tax where it applicable. Tax is 13% HST

Sales fully taxable	95,000
Sales no tax	10,000
Purchases
Vegetable items	15,000
Cosmetic items	7,000
Stationary items	5,000
Lotto tickets	10,000
Ice cream	5,000
Dollar products	9,000
Bought Cosmetic for personal use	5,000
Chicken	9,000

Calculate the HST payable by Brown to Revenue Canada

8. John work for Toronto Star on an hourly paid employee. His rate of pay is

$20.00 per hr. he is paid every 2 weeks and he worked 70 hrs in the 2 weeks period. His deductions for this 2 weeks period is as follows

Tax 175 CPP 95 EI 54, CPP and EI are employee deduction

Vacation is paid to John with his pay cheque. Using the information calculate the payroll and use the T account to show the entries. And find the

Net pay payable to John

Amount payable to Revenue Canada

Amount charged to Salaries expense account.

9. Dickson & Co sells products to their customers on credit. The following customers purchased goods from Dickson & Co and paid as per below

Date	Customer	Invoice #	Amount
1/1/19	Brown	01	1,000
1/1/19	John	02	2,000
1/5/19	Christy	03	5,000
1/15/19	Brown	04	3,000
2/3/19	Christy	05	2,000
2/10/19	John	06	5,000
2/15/19	Brown	07	6,000
3/10/19	Christy	08	3,000
3/15/19	John	09	7,000
3/22/19	Brown	10	3,000
Payments
1/29/19	John	02	1,000
1/31/19	Brown	01	1,000

2/5/19	John	02	1,000
2/15/19	Brown	04	2,000
2/22/19	John	06	6,000
3/10/19	Christy	05	2,000
3/22/19	Brown	07	3,000

Prepare the aging report as of March 31, 2019.

Calculate the sales made on credit for the above said customers.

Calculate total A/R balance as of March 31,2019

If Dickson & Co.s policy to write off 2% of the balance over 30 days as bad debts what amount will be written off as of March 31, 2019.

Show the double entry in the T account for the write off amount.

10. Chris bought a hockey stick that regularly sold for $175. He received a 20 percent discount. How much did the stick cost before tax?

$205

$140

$35

$125