Required: Calculate Conan Comic's HST payable or HST refund for the current year using the regular method. AP 21-6 (Quick Method) John, Alice, Alex, and Jerry Rangi are siblings that each carry on their own business as a sole proprietor. All of the businesses are located in Ontario and all of the revenues are earned from doing business in Ontario. All of the businesses are registered for HST The siblings have provided the following annual information for each of their businesses. All amounts shown include HST. None of the sales or purchases are zero-rated or exempt, and none of the businesses made any capital expenditures during the year. Type of Business Sales Purchases John Alice Computer sales, repairs, and tutoring $ 103,960 $26,160 Bicycle sales and service 194,360 159,330 Alex Jerry Menswear sales and custom tailoring Hair styling service and hair product sales 126,560 47,460 84,750 41,810 The HST rate in Ontario is 13%. The quick method remittance rates are 4.4% for resellers and 8.8% for service providers. When calculating the applicable remittance rate, assume the sales and purchases of the previous year were equal to those of the current year. Required: Recommend whether any the businesses should use the quick method to calculate HST remittances. Show all your calculations.
Required: Calculate Conan Comic's HST payable or HST refund for the current year using the regular method. AP 21-6 (Quick Method) John, Alice, Alex, and Jerry Rangi are siblings that each carry on their own business as a sole proprietor. All of the businesses are located in Ontario and all of the revenues are earned from doing business in Ontario. All of the businesses are registered for HST The siblings have provided the following annual information for each of their businesses. All amounts shown include HST. None of the sales or purchases are zero-rated or exempt, and none of the businesses made any capital expenditures during the year. Type of Business Sales Purchases John Alice Computer sales, repairs, and tutoring $ 103,960 $26,160 Bicycle sales and service 194,360 159,330 Alex Jerry Menswear sales and custom tailoring Hair styling service and hair product sales 126,560 47,460 84,750 41,810 The HST rate in Ontario is 13%. The quick method remittance rates are 4.4% for resellers and 8.8% for service providers. When calculating the applicable remittance rate, assume the sales and purchases of the previous year were equal to those of the current year. Required: Recommend whether any the businesses should use the quick method to calculate HST remittances. Show all your calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Required: Calculate Conan Comic's HST payable or HST refund for the current year using the
regular method.
AP 21-6 (Quick Method)
John, Alice, Alex, and Jerry Rangi are siblings that each carry on their own business as a sole proprietor.
All of the businesses are located in Ontario and all of the revenues are earned from doing business
in Ontario. All of the businesses are registered for HST
The siblings have provided the following annual information for each of their businesses. All
amounts shown include HST. None of the sales or purchases are zero-rated or exempt, and none
of the businesses made any capital expenditures during the year.
Type of Business
Sales
Purchases
John
Alice
Computer sales, repairs, and tutoring
$ 103,960
$26,160
Bicycle sales and service
194,360
159,330
Alex
Jerry
Menswear sales and custom tailoring
Hair styling service and hair product sales
126,560
47,460
84,750
41,810
The HST rate in Ontario is 13%. The quick method remittance rates are 4.4% for resellers and
8.8% for service providers. When calculating the applicable remittance rate, assume the sales and
purchases of the previous year were equal to those of the current year.
Required: Recommend whether any the businesses should use the quick method to calculate
HST remittances. Show all your calculations.
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