Gear Out There Inc., located in Prince George, B$.$C$.,$ is a company selling supplies and materials for climbing, hiking, and other outdoor activities to retail supply stores in British Columbia.

Gear Out There Inc. is incorporated under the laws of British Columbia, and is required to remit GST$,$ Goods and Services Tax, at the rate of $5\%$ on all its sales and must remit $($give$)$ taxes collected to the federal government on a quarterly basis. GST amounts charged by its suppliers can be deducted from this remittance $($these deductions$$ called ITC credit by CRA$).$ NO INCOME INCLUSION, only Balance Sheet, under related accounts $($will show in class using template this and salaries calc below; if missed ask for a office meeting$/$call$/$Zoom$).$

This is not the case for PST$.$ Provincial Sales Tax is always expensed. Gear Out There Inc. is required to remit Provincial Sales Tax at the rate of $7\%$ on all sales. GST$,$ PST$,$ and all taxes collected due to business activity occurring within the financial period. All businesses must remit taxes collected on behalf of the government on a regular basis.

All regulatory source deductions should be accounted for; that is both employee and employer portion of wages are recorded by the business. The WorkSafe BC assessment rate is $1\%$ of gross salaries. See next for more details in computation of FS$.$