Muskoka Boys Shaving Co. ("MBSC") is a GST/HST registrant operating an online store in Ontario's cottage country region. The company specializes in selling fine grooming products for men. It is June 1, 2022 and the company is preparing its GST/HST filing for the 2021-01-01 to 2021-12-31 reporting period. During 2021, the company made sales (excluding GST/HST) to the following locations: • Ontario: $75,000 • Alberta: $50,000 Nova Scotia: $14,700 • United States: $22,500 Expenses (excluding any applicable GST/HST and acquired in Ontario) for the same period consisted of: Purchases of inventory: $63,000 • Meals and entertainment: $4,000 • Internet (business portion) and office supplies: $1,500 • "Movember" charitable donations: $2,000 • Rent (the company operates out of the owner's principal residence): $14,000 • Legal and accounting fees: $6,000 HST instalments for the reporting period totalled $0. MBSC has also been approached by an online lifestyle blog to write an article on the benefits of cartridge razors over disposable razors. MBSC will invoice the blog's head office in Manitoba $4,000 for the article when it is completed on July 1, 2022. Required: 1. Determine the GST/HST refund or balance owing for the 2021-01-01 to 2021-12-31 reporting period. Be sure to include total taxable supplies, total GST/HST collected, and total ITCS. (Enter all numbers as positive amounts.) Total taxable supplies Total GST/HST collected Total Input Tax Credits (ITCS) Total GST instalments
Muskoka Boys Shaving Co. ("MBSC") is a GST/HST registrant operating an online store in Ontario's cottage country region. The company specializes in selling fine grooming products for men. It is June 1, 2022 and the company is preparing its GST/HST filing for the 2021-01-01 to 2021-12-31 reporting period. During 2021, the company made sales (excluding GST/HST) to the following locations: • Ontario: $75,000 • Alberta: $50,000 Nova Scotia: $14,700 • United States: $22,500 Expenses (excluding any applicable GST/HST and acquired in Ontario) for the same period consisted of: Purchases of inventory: $63,000 • Meals and entertainment: $4,000 • Internet (business portion) and office supplies: $1,500 • "Movember" charitable donations: $2,000 • Rent (the company operates out of the owner's principal residence): $14,000 • Legal and accounting fees: $6,000 HST instalments for the reporting period totalled $0. MBSC has also been approached by an online lifestyle blog to write an article on the benefits of cartridge razors over disposable razors. MBSC will invoice the blog's head office in Manitoba $4,000 for the article when it is completed on July 1, 2022. Required: 1. Determine the GST/HST refund or balance owing for the 2021-01-01 to 2021-12-31 reporting period. Be sure to include total taxable supplies, total GST/HST collected, and total ITCS. (Enter all numbers as positive amounts.) Total taxable supplies Total GST/HST collected Total Input Tax Credits (ITCS) Total GST instalments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Muskoka Boys Shaving Co. ("MBSC") is a GST/HST registrant operating an online store in Ontario's cottage country region. The
company specializes in selling fine grooming products for men. It is June 1, 2022 and the company is preparing its GST/HST filing for
the 2021-01-01 to 2021-12-31 reporting period.
During 2021, the company made sales (excluding GST/HST) to the following locations:
• Ontario: $75,000
• Alberta: $50,000
Nova Scotia: $14,700
• United States: $22,500
Expenses (excluding any applicable GST/HST and acquired in Ontario) for the same period consisted of:
Purchases of inventory: $63,000
• Meals and entertainment: $4,000
• Internet (business portion) and office supplies: $1,500
• "Movember" charitable donations: $2,000
• Rent (the company operates out of the owner's principal residence): $14,000
• Legal and accounting fees: $6,000
HST instalments for the reporting period totalled $0.
MBSC has also been approached by an online lifestyle blog to write an article on the benefits of cartridge razors over disposable
razors. MBSC will invoice the blog's head office in Manitoba $4,000 for the article when it is completed on July 1, 2022.
Required:
1. Determine the GST/HST refund or balance owing for the 2021-01-01 to 2021-12-31 reporting period. Be sure to include total taxable
supplies, total GST/HST collected, and total ITCS. (Enter all numbers as positive amounts.)
Total taxable supplies
Total GST/HST collected
Total Input Tax Credits (ITCS)
Total GST instalments
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