John's Tees sells only fully taxable t-shirts to customers in Ontario where the HST rate is 13%. In Ontario, the Quick Rate for businesses that purchase goods for resale is 4.4%. During the first quarter of the year, John's Tees has sales of $60000, before HST. Current expenses, all of which were subject to HST, total $41000 (before HST). Due to a major renovation of the store, John's Tees has capital expenditures of $3200 (before HST). Using the Quick Method, determine the HST that is payable for the quarter.
John's Tees sells only fully taxable t-shirts to customers in Ontario where the HST rate is 13%. In Ontario, the Quick Rate for businesses that purchase goods for resale is 4.4%. During the first quarter of the year, John's Tees has sales of $60000, before HST. Current expenses, all of which were subject to HST, total $41000 (before HST). Due to a major renovation of the store, John's Tees has capital expenditures of $3200 (before HST). Using the Quick Method, determine the HST that is payable for the quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
John's Tees sells only fully taxable t-shirts to customers in Ontario where the HST rate is 13%. In Ontario, the Quick Rate for businesses that purchase goods for resale is 4.4%. During the first quarter of the year, John's Tees has sales of $60000, before HST. Current expenses, all of which were subject to HST, total $41000 (before HST). Due to a major renovation of the store, John's Tees has capital expenditures of $3200 (before HST). Using the Quick Method, determine the HST that is payable for the quarter.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education