Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

f) Wellington Co., an Ontario-based company has sales of taxable supplies and is registered for HST. It has provided the following information for the

image text in transcribed

f) Wellington Co., an Ontario-based company has sales of taxable supplies and is registered for HST. It has provided the following information for the year (all amounts are shown before HST). Note Revenue 600,000 Operating expenses Advertising and promotion 50,000 1 Bank charges and interest 1,000 Depreciation 38,000 2 Interest on long-term debt 14,000 Office 113,000 3 Salaries and benefits 201,000 417,000 Operating income 183,000 Notes 1) Advertising and promotion includes $6,000 of golf memberships. 2) Depreciation is being calculated on the following assets: Building: annual depreciation = $20,000 Equipment (including $10,000 purchased this year): annual depreciation = $18,000 3) The office expense includes $40,000 of purchases that are either HST exempt or zero-rated. Calculate Wellington Co's HST payable based on the above activity. (5 marks) (~10 minutes)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

10th Edition

1305793196, 978-1305793194

More Books

Students also viewed these Accounting questions

Question

9. What lawmaking body provided this law for Pennsylvania

Answered: 1 week ago