gst is 15%

Problem Three (10 points): Weez Ltd is a GST registered retailer of widgets with monthly accounting periods. The following is the unadjusted trial balance at 28 February 2018, the end of the financial year. Important: the balances in the temporary accounts reflect February events only.No other account names are available in the Genera Ledg Additional information follows the trial balance. Weez Ltd Unadjusted Trial Balance 28 February 2018 Account Name DR Balance Account Name CR Balance $37,000 Acc. Depreciation, Cash $1,200 20,000 Accounts Payable 500 Warranty Payable 1,000 GST Clearing 12,400 28,000 2,000 Allowance for Doubtful Accts Interest Receivable Prepaid Rent 20,250 Salaries Payable 50,000 PAYE Payable 100,000Income Tax Payable 12,000 Retained Earnings 5,000 Foreign Currency Inventonynt in Debentures Computer Equipment 8,650 12,000 Dividends Declared Salaries Expense Cost of Goods Sold 28,800 Share Capital 90,000 16,000 120,000 0 Gain on Sale of Building Sales Returns & Allowances 200 Sales Revenue Sales Discounts Bad Debt Expense 800 Interest Revenue Other Operating Expenses 4,200 Interest Expense Warranty Expense 500 Rent Expense Depreciation Expense, Equipment Income Tax Expense OCI Loss on Foreign Currency 10.000 Total $290.250 Total i. The recoverable amount of the $20,000 of accounts receivable shown on the unadjusted trial balance is $18,000 i. The investment in debentures pay interest quarterly at a 6% annual rate. The next interest payment date is 1 March 2018 ii In October 2017, Weez Ltd prepaid its store rent for the entire year, effective the beginning of November 2017. The yearly rent is $31,050, including GST The computer equipment has a useful life of five years, a residual value of $1,000, and is being depreciated using the declining balance method at 2x the straight-line rate Accumulated Depreciation represents three months of depreciation. (Weez Ltd calculates a 12 month block of depreciation and then apportions the expense monthly.) The balance in . Dividends of $5,000 were declared and paid to Weez Ltd shareholders in February vi. The February payroll totals $32,000 for 20 days of work for that month. The 20 days include two days worked the end of February that will be paid in March. Included in the $32,000 is $8,000 of PAYE and other withholdings vii. Weez Ltd uses the periodic inventory system and debits Inventory for all of its merchandise purchases. It then counts the inventory remaining at the end of each month and applies FIFO in order to calculate Cost of Goods Sold for the month. The $50,000 balance of Inventory on the trial balance (shown net of GST) consists of the following: .Beginning inventory (as at 1 February 2018) of 2,000 widgets at $2 each; 6,000 units purchased at $3 each on 10 February; .10,000 units purchased at $2.50 each on 16 February 1,000 units purchased at $3 each on 25 February An inventory count on 28 February showed that 1,500 widgets remained on hand vii The inventory count did not include the items shipped as the result of a 27 February sale of 500 wid et at 1 150 each includinn GST terms 2/In Previ Neyt nLiS of depreciation. (Weez Ltd calculates a 12 month block of depreciation and then apportions the expense monthly.) Dividends of $5,000 were declared and paid to Weez Ltd shareholders in February vi. The February payroll totals $32,000 for 20 days of work for that month. The 20 days include two days worked the end of February that will be paid in March. Included in the $32,000 is $8,000 of PAYE and other withholdings vi Weez Ltd uses the periodic inventory system and debits Inventory for all of its merchandise purchases It then counts the inventory remaining at the end of each month and applies FIFO in order to calculate Cost of Goods Sold for the month. The $50,000 balance of Inventory on the trial balance (shown net of GST) consists of the following: Beginning inventory (as at 1 February 2018) of 2,000 widgets at $2 each; 6,000 units purchased at $3 each on 10 February .10,000 units purchased at $2.50 each on 16 February 1,000 units purchased at $3 each on 25 February An inventory count on 28 February showed that 1,500 widgets remained on hand vii. The inventory count did not include the items shipped as the result of a 27 February sale of 500 widgets at $11.50 each, including GST, terms 2/10 net 30. Weez Ltd shipped the widgets on 28 February, FOB shipping point, to arrive at the buyer's place of business in early March. Weez Ltd has not yet recorded the sale x Weez Ltd offers a one year warranty and estimates that as at 28 February, the amount owing for the next 12 months is $30,000. GST does not apply to warranty work . Income tax payable is estimated at 30% of pre-tax profit Required: Prepare a Statement of Comprehensive Income for Weez Ltd for the month ending 28 February 2018, in the form and format prescribed in ACCTG 102 Weez Ltd Problem Three (10 points): Weez Ltd is a GST registered retailer of widgets with monthly accounting periods. The following is the unadjusted trial balance at 28 February 2018, the end of the financial year. Important: the balances in the temporary accounts reflect February events only.No other account names are available in the Genera Ledg Additional information follows the trial balance. Weez Ltd Unadjusted Trial Balance 28 February 2018 Account Name DR Balance Account Name CR Balance $37,000 Acc. Depreciation, Cash $1,200 20,000 Accounts Payable 500 Warranty Payable 1,000 GST Clearing 12,400 28,000 2,000 Allowance for Doubtful Accts Interest Receivable Prepaid Rent 20,250 Salaries Payable 50,000 PAYE Payable 100,000Income Tax Payable 12,000 Retained Earnings 5,000 Foreign Currency Inventonynt in Debentures Computer Equipment 8,650 12,000 Dividends Declared Salaries Expense Cost of Goods Sold 28,800 Share Capital 90,000 16,000 120,000 0 Gain on Sale of Building Sales Returns & Allowances 200 Sales Revenue Sales Discounts Bad Debt Expense 800 Interest Revenue Other Operating Expenses 4,200 Interest Expense Warranty Expense 500 Rent Expense Depreciation Expense, Equipment Income Tax Expense OCI Loss on Foreign Currency 10.000 Total $290.250 Total i. The recoverable amount of the $20,000 of accounts receivable shown on the unadjusted trial balance is $18,000 i. The investment in debentures pay interest quarterly at a 6% annual rate. The next interest payment date is 1 March 2018 ii In October 2017, Weez Ltd prepaid its store rent for the entire year, effective the beginning of November 2017. The yearly rent is $31,050, including GST The computer equipment has a useful life of five years, a residual value of $1,000, and is being depreciated using the declining balance method at 2x the straight-line rate Accumulated Depreciation represents three months of depreciation. (Weez Ltd calculates a 12 month block of depreciation and then apportions the expense monthly.) The balance in . Dividends of $5,000 were declared and paid to Weez Ltd shareholders in February vi. The February payroll totals $32,000 for 20 days of work for that month. The 20 days include two days worked the end of February that will be paid in March. Included in the $32,000 is $8,000 of PAYE and other withholdings vii. Weez Ltd uses the periodic inventory system and debits Inventory for all of its merchandise purchases. It then counts the inventory remaining at the end of each month and applies FIFO in order to calculate Cost of Goods Sold for the month. The $50,000 balance of Inventory on the trial balance (shown net of GST) consists of the following: .Beginning inventory (as at 1 February 2018) of 2,000 widgets at $2 each; 6,000 units purchased at $3 each on 10 February; .10,000 units purchased at $2.50 each on 16 February 1,000 units purchased at $3 each on 25 February An inventory count on 28 February showed that 1,500 widgets remained on hand vii The inventory count did not include the items shipped as the result of a 27 February sale of 500 wid et at 1 150 each includinn GST terms 2/In Previ Neyt nLiS of depreciation. (Weez Ltd calculates a 12 month block of depreciation and then apportions the expense monthly.) Dividends of $5,000 were declared and paid to Weez Ltd shareholders in February vi. The February payroll totals $32,000 for 20 days of work for that month. The 20 days include two days worked the end of February that will be paid in March. Included in the $32,000 is $8,000 of PAYE and other withholdings vi Weez Ltd uses the periodic inventory system and debits Inventory for all of its merchandise purchases It then counts the inventory remaining at the end of each month and applies FIFO in order to calculate Cost of Goods Sold for the month. The $50,000 balance of Inventory on the trial balance (shown net of GST) consists of the following: Beginning inventory (as at 1 February 2018) of 2,000 widgets at $2 each; 6,000 units purchased at $3 each on 10 February .10,000 units purchased at $2.50 each on 16 February 1,000 units purchased at $3 each on 25 February An inventory count on 28 February showed that 1,500 widgets remained on hand vii. The inventory count did not include the items shipped as the result of a 27 February sale of 500 widgets at $11.50 each, including GST, terms 2/10 net 30. Weez Ltd shipped the widgets on 28 February, FOB shipping point, to arrive at the buyer's place of business in early March. Weez Ltd has not yet recorded the sale x Weez Ltd offers a one year warranty and estimates that as at 28 February, the amount owing for the next 12 months is $30,000. GST does not apply to warranty work . Income tax payable is estimated at 30% of pre-tax profit Required: Prepare a Statement of Comprehensive Income for Weez Ltd for the month ending 28 February 2018, in the form and format prescribed in ACCTG 102 Weez Ltd