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Jacks sales sells photocopiers and provides parts and services to its customers. The company has 30 employees and provide employees with a benefit plan. You
Jacks sales sells photocopiers and provides parts and services to its customers. The company has 30 employees and provide employees with a benefit plan. You are the controller and are looking at the liability section of the balance sheet and have identified several areas for consideration.
- The company remits HST quarterly. The company had sales of $2,400,000 (before HST) and made purchases of $1,300,000 (before HST) during the quarter. The HST rate is 15%. A customer retuned a sale in the amount of $3,500 plus HST.
- Record the journal entries for the sales, purchases and remittance of HST for the quarter. Assume the company uses a periodic inventory system.
- The payroll for December was as follows: Total payroll $170,000 all of which is considered pensionable and insurable, income taxes in the amount of $44,800 were withheld as well as $1,600 in union dues. CPP rate for employees and employers is 4.95%. EI rate for employees is 1.66% and employers must pay 1.4 times the employees rate.
- Prepare the December journal entries including the remittance.
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