Purpose: To gain an understanding of how to prepare both a Quick Method and Basic Method...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Purpose: To gain an understanding of how to prepare both a Quick Method and Basic Method HST return which could be required in a small business scenario. Objective: To complete a Quick Method and Basic Method HST return. This assignment relates to the following Course Learning Requirements: • CLR 1-Complete a GST/HST (QST) return and apply basic rules of the applicable tax. Instructions: Respond to the questions below. 1. XYZ Clothing store has registered and filed for the Quick Method of reporting their GST/HST return. They are a quarterly filer and are registered in Ontario. 2020 sales including HST per quarter were $79,000 for Q1, $119,000 for Q2, $129,000 for Q3 and $71,000 for Q4. Their supplies were made in a participating province with the rate of 4.4%. In Q1 of 2021 their sales were $64,000 including GST/HST and they paid $8,800.00 in GST/HST on goods. Does XYZ Clothing store still qualify to use the quick method given the new information regarding sales of $64,000 in Q1 of 2021? Prepare a Quick Return for Q1 of 2021 based on the above information. An excel spreadsheet has been provided for you in Lesson 9 to fill in. Please provide the values for lines: 101, 105, 108, 109 and either 114 or 115 depending on your answer. 2. A lawyer by the name of Peter Smith started his own law practice, a sole practitioner in Ottawa. His first three months were very good because he worked on a very high profile case. He is sure that his next year will have significantly less revenue. His quarterly sales and ITCs included: SALES 01/01/20 to 03/31/20: $113,000 04/01/20 to 06/30/20: $102,000 07/01/20 to 09/30/20: $113,000 10/01/20 to 12/31/20: $26,000 GST/HST COLLECTED $14,690 $13,260 $14,690 $3,380 ITC'S $12,535.10 $8,875.22 $4,522.80 $8,239.45 Mr. Smith decided to register his business for GST/HST on February 1, 2020. Included in his ITCs were meal costs (GST/HST paid on meals) for $300.00 for the first quarter, 399.00 for the second quarter, $84.00 for the third quarter and $465.00 for the fourth quarter. When he realized revenue would be less in his second year, he applied for the quick method on October 1, 2020 but has not received confirmation that he can submit using this method. He is required to file quarterly returns and you are required to prepare his third quarterly return. Prepare a QST or General GST/HST Return based on the above information. An excel spreadsheet has been provided for you in Lesson 9 to fill in. Please provide the values for lines: 101, 105, 108, 109 and either 114 or 115 depending on your answer. Part marks will be considered therefore it's important to show all work and explain your decisions. Purpose: To gain an understanding of how to prepare both a Quick Method and Basic Method HST return which could be required in a small business scenario. Objective: To complete a Quick Method and Basic Method HST return. This assignment relates to the following Course Learning Requirements: • CLR 1-Complete a GST/HST (QST) return and apply basic rules of the applicable tax. Instructions: Respond to the questions below. 1. XYZ Clothing store has registered and filed for the Quick Method of reporting their GST/HST return. They are a quarterly filer and are registered in Ontario. 2020 sales including HST per quarter were $79,000 for Q1, $119,000 for Q2, $129,000 for Q3 and $71,000 for Q4. Their supplies were made in a participating province with the rate of 4.4%. In Q1 of 2021 their sales were $64,000 including GST/HST and they paid $8,800.00 in GST/HST on goods. Does XYZ Clothing store still qualify to use the quick method given the new information regarding sales of $64,000 in Q1 of 2021? Prepare a Quick Return for Q1 of 2021 based on the above information. An excel spreadsheet has been provided for you in Lesson 9 to fill in. Please provide the values for lines: 101, 105, 108, 109 and either 114 or 115 depending on your answer. 2. A lawyer by the name of Peter Smith started his own law practice, a sole practitioner in Ottawa. His first three months were very good because he worked on a very high profile case. He is sure that his next year will have significantly less revenue. His quarterly sales and ITCs included: SALES 01/01/20 to 03/31/20: $113,000 04/01/20 to 06/30/20: $102,000 07/01/20 to 09/30/20: $113,000 10/01/20 to 12/31/20: $26,000 GST/HST COLLECTED $14,690 $13,260 $14,690 $3,380 ITC'S $12,535.10 $8,875.22 $4,522.80 $8,239.45 Mr. Smith decided to register his business for GST/HST on February 1, 2020. Included in his ITCs were meal costs (GST/HST paid on meals) for $300.00 for the first quarter, 399.00 for the second quarter, $84.00 for the third quarter and $465.00 for the fourth quarter. When he realized revenue would be less in his second year, he applied for the quick method on October 1, 2020 but has not received confirmation that he can submit using this method. He is required to file quarterly returns and you are required to prepare his third quarterly return. Prepare a QST or General GST/HST Return based on the above information. An excel spreadsheet has been provided for you in Lesson 9 to fill in. Please provide the values for lines: 101, 105, 108, 109 and either 114 or 115 depending on your answer. Part marks will be considered therefore it's important to show all work and explain your decisions.
Expert Answer:
Answer rating: 100% (QA)
To determine if XYZ Clothing store still qualifies to use the quick method they would need to calculate their annual sales and compare them to the thr... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Which of the following is an understanding of how a company impacts the people and the environment in which it operates and consciously applies sustainable practices through every element of its...
-
How does the auditor gain an understanding of the audit client and its environment?
-
Do some research to gain an understanding of why BYOD policies are necessary for organizations that must abide by HIPAA regulations. Do you believe that employees of a large healthcare provider...
-
A firm pays a $1.50 dividend at the end of year one (0). has a stock price of $141 (Pa), and a constant growth rate (g) of 9 percent. a. Compute the required rate of return (ke). (Do not round...
-
For what sorts of jobs do you think computerized interviews are most appropriate? Why?
-
Determine the distance h to which a hole must be bored into the cylinder so that the center of mass of the assembly is located at x = 64 mm. The material has a density of 8Mg/m3. 120 mm- 40 mm 20 mm
-
What is information asymmetry? What are the problems that it highlights in planning?
-
Patrick Kellogg has prepared the following list of statements about the accounting cycle. 1. "Journalize the transactions" is the first step in the accounting cycle. 2. Reversing entries are a...
-
You borrow $1,000.00 for 16 months at 2% (SA). [A] What do you owe on the due date, if interest is charged for part of a period? [B] How much interest in TOTAL did you pay? Round ALL answers to the...
-
Where are the current career opportunities for the IT auditor? Search the Internet and identify at least one job profile/description for each career opportunity identified above. For each job profile...
-
A MOA can sign a pathology report. Question 11 options: True False
-
Identify the two major errors or frauds that could result from weaknesses in shipping controls.
-
Why does an auditor typically examine market quotations for a client's investments?
-
What procedure does an auditor use to determine whether recorded inventory exists?
-
You are considering the controls over a client's personnel and payroll activities. System documentation was accomplished with a questionnaire and a narrative memorandum and, in conjunction with a...
-
What is the primary focus of the tests of controls performed on an entity's selling and cash receipts activities?
-
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow...
-
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
-
You have been asked to draft a corporate usage policy regarding the use of instant messaging. The policy should encourage the use of IM and chat while also providing useful guidance to avoid...
-
What would it imply if, while performing a SWOT analysis, an organization could not identify any opportunities? What if it could not identify any threats?
-
How and why do brick-and-mortar retailers need to modify their in-store operations and procedures to meet new expectations of shoppers?
-
Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/) from December 10, 2010, to answer the following questions: a. What is the mid-rate for each...
-
Swissie Triangular Arbitrage. The following exchange rates are available to you. (You can buy or sell at the stated rates.) Assume you have an initial SF12,000,000. Can you make a profit via...
-
Aussie Dollar Forward. Use the following spot and forward bid-ask rates for the U.S. dollar/Australian dollar (US$ = A$1.00) exchange rate from December 10, 2010, to answer the following questions:...
Study smarter with the SolutionInn App