Question 1

Common subsidiary ledgers include accounts payable, accounts receivable, and inventory.

Accepted Answer

A) True 
 B)False  True

Question 2

Value in use of an asset involves a single step calculating the asset's future cash flows.

Accepted Answer

A) True 
 B)False  False

Question 3

At the end of the reporting period for GST, the amount of GST payable is added to any amount of GST recoverable.

Accepted Answer

A) True 
 B)False  False

Question 4

Great Green Landscaping sells lawn maintenance equipment. They use a perpetual inventory system and their operations are located in Manitoba. The Manitoba PST rate is 8%. The following transactions took place in May:
May 6 Purchased 350 trimmers for resale at $ 100 each before taxes from Trim It with terms 2/10, net 30, FOB shipping point.
16 Returned two of the trimmers as they were defective.
22 Picked up $ 250 worth of supplies to be used in the sales office and paid with cash.
31 Purchased two desks to be used in the sales office for $ 450 plus applicable taxes on account.
Instructions
Prepare the journal entries to record these transactions. Do not round amounts.

Accepted Answer

The answer of Great Green Landscaping sells lawn maintenance equipment....

Question 5

When remitting GST, it is appropriate to net the GST Payable and GST Recoverable accounts.

Accepted Answer

A) True 
 B)False

Question 6

Hockey Hus is located in Ontario with an HST rate of 13%. At the end of the quarter, Hockey Hus had the following balances in their HST accounts: $$\begin{array} { l l } 
\text { HST Recoverable } & \$ 24,000 \
\text { HST Payable } & \$ 40,000
\end{array}$$ Instructions
Prepare the journal entry or entries related to their HST filing.

Accepted Answer

HST Payable.............................

Question 7

Golf Green sells golfing equipment. The have a perpetual inventory system and their store is located in Ontario with an HST rate of 13%. The following transactions took place in May:
May 6 With terms 2/10, net 30, FOB shipping point Golf Green purchased 350 putters for resale at $ 100 each before taxes from Ting Inc.
16 As part of their spring-cleaning efforts, Sam picked up $ 300 worth of cleaning supplies and paid using cash.
22 Due to defects Gold returned two of the putters.
31 Purchased one new display unit for $ 600 plus applicable taxes on account.
Instructions
Prepare the journal entries to record these transactions.

Accepted Answer

The answer of Golf Green sells golfing equipment. The have...

Question 8

A phone bill that totals $ 113 is received in Manitoba, a province that has both GST and PST. The amount that would appear as the expense would be

Accepted Answer

A)  $ 113. 
B)  $ 100. 
C)  $ 108. 
D)  $ 105. 
A)  $ 113. 
B)  $ 100. 
C)  $ 108. 
D)  $ 105.

Question 9

Ashwin has just invested $ 10,000 in a compound interest three-year certificate with a rate of 6%.
Instructions
Calculate the total amount of interest in total Ashwin will receive.

Accepted Answer

The answer of Ashwin has just invested $ 10,000 in...

Question 10

Key West Surfboards is issuing $ 260,000 worth of their bonds today. The bonds have a 5-year term and
an interest rate of 4% equal to that of the market.
Instructions
Calculate the sales price of these bonds.

Accepted Answer

As the market and bond rate ar

Question 11

Terry's Trucks sells $ 250 worth of oil to a home-based mechanic. Both businesses are located in Manitoba where the PST is 8% and GST 5%. Terry's uses a perpetual inventory system and the cost of the oil sold was $ 125 before tax. What would be the entry to cost of goods sold for the sale?

Accepted Answer

A)  $ 135.00 
B)  $ 141.25 
C)  $ 250.00 
D)  $ 125.00 
A)  $ 135.00 
B)  $ 141.25 
C)  $ 250.00 
D)  $ 125.00

Question 12

Each general ledger control account must equal the total balance of the individual accounts in the related subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 13

Claudex Camping Store uses a periodic inventory system and is located in Winnipeg, Manitoba where the PST rate is 8%. Claudex uses the earnings approach for revenue recognition. The following transactions took place in March:   Instructions
Prepare the journal entries for the month of July. Do not round amounts.

Accepted Answer

The answer of Claudex Camping Store uses a periodic inventory...

Question 14

If Company A has not received payment from a customer purchasing on account, the tax is not due to the government until that payment is received.

Accepted Answer

A) True 
 B)False

Question 15

Daily postings are made from the sales journal to the individual accounts receivable in the subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 16

For the following provinces: New Brunswick, Newfoundland, Alberta, British Columbia, Yukon, identify which sales tax or taxes they charge.

Accepted Answer

The answer of For the following provinces: New Brunswick, Newfoundland,...

Question 17

Maine Event is a new salon located in Saint John, New Brunswick. The following information relates to transactions that took place in June. Maine Event uses a perpetual inventory system and uses the earnings approach for revenue recognition.   Instructions
Prepare the journal entries to record these transactions. Do not round amounts.

Accepted Answer

The answer of Maine Event is a new salon located...

Question 18

Simple interest is used in most business transactions.

Accepted Answer

A) True 
 B)False

Question 19

GST paid on merchandise for resale is debited to

Accepted Answer

A)  GST Recoverable. 
B)  GST Payable. 
C)  Merchandise Inventory. 
D)  Cash. 
A)  GST Recoverable. 
B)  GST Payable. 
C)  Merchandise Inventory. 
D)  Cash.

Question 20

A new lease contract has just been signed for a digital engraving machine. It has been determined that this lease is a capital lease containing the following terms:
Term - 5 years
Payments - $ 5,000 due at the end of each contract year
Discount Rate - 6%
Instructions
Calculate the amount used to capitalize the engraving machine. Round your answer to the nearest dollar.

Accepted Answer

$ 5,000 x

Common subsidiary ledgers include accounts payable, accounts receivable, and inventory.

Value in use of an asset involves a single step calculating the asset's future cash flows.

At the end of the reporting period for GST, the amount of GST payable is added to any amount of GST recoverable.

When remitting GST, it is appropriate to net the GST Payable and GST Recoverable accounts.

Hockey Hus is located in Ontario with an HST rate of 13%. At the end of the quarter, Hockey Hus had the following balances in their HST accounts: HST Recoverable \ 24,000 HST Payable \ 40,000 Instructions Prepare the journal entry or entries related to their HST filing.

A phone bill that totals $ 113 is received in Manitoba, a province that has both GST and PST. The amount that would appear as the expense would be

Ashwin has just invested $ 10,000 in a compound interest three-year certificate with a rate of 6%. Instructions Calculate the total amount of interest in total Ashwin will receive.

Key West Surfboards is issuing $ 260,000 worth of their bonds today. The bonds have a 5-year term and an interest rate of 4% equal to that of the market. Instructions Calculate the sales price of these bonds.

Terry's Trucks sells $ 250 worth of oil to a home-based mechanic. Both businesses are located in Manitoba where the PST is 8% and GST 5%. Terry's uses a perpetual inventory system and the cost of the oil sold was $ 125 before tax. What would be the entry to cost of goods sold for the sale?

Each general ledger control account must equal the total balance of the individual accounts in the related subsidiary ledger.

If Company A has not received payment from a customer purchasing on account, the tax is not due to the government until that payment is received.

Daily postings are made from the sales journal to the individual accounts receivable in the subsidiary ledger.

For the following provinces: New Brunswick, Newfoundland, Alberta, British Columbia, Yukon, identify which sales tax or taxes they charge.

Simple interest is used in most business transactions.

GST paid on merchandise for resale is debited to

Long-Lived Assets

Current Liabilities and Payroll

Financial Reporting Concepts

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and IFRS

Non-Current Liabilities

Investments

The Cash Flow Statement

Financial Statement Analysis

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Exam 11: Understanding Interest, Annuities, and Bond Valuation

Common subsidiary ledgers include accounts payable, accounts receivable, and inventory.

Value in use of an asset involves a single step calculating the asset's future cash flows.

At the end of the reporting period for GST, the amount of GST payable is added to any amount of GST recoverable.

When remitting GST, it is appropriate to net the GST Payable and GST Recoverable accounts.

Hockey Hus is located in Ontario with an HST rate of 13%. At the end of the quarter, Hockey Hus had the following balances in their HST accounts: HST Recoverable \ 24,000 HST Payable \ 40,000 Instructions Prepare the journal entry or entries related to their HST filing.

A phone bill that totals $ 113 is received in Manitoba, a province that has both GST and PST. The amount that would appear as the expense would be

Ashwin has just invested $ 10,000 in a compound interest three-year certificate with a rate of 6%. Instructions Calculate the total amount of interest in total Ashwin will receive.

Key West Surfboards is issuing $ 260,000 worth of their bonds today. The bonds have a 5-year term and an interest rate of 4% equal to that of the market. Instructions Calculate the sales price of these bonds.

Terry's Trucks sells $ 250 worth of oil to a home-based mechanic. Both businesses are located in Manitoba where the PST is 8% and GST 5%. Terry's uses a perpetual inventory system and the cost of the oil sold was $ 125 before tax. What would be the entry to cost of goods sold for the sale?

Each general ledger control account must equal the total balance of the individual accounts in the related subsidiary ledger.

If Company A has not received payment from a customer purchasing on account, the tax is not due to the government until that payment is received.

Daily postings are made from the sales journal to the individual accounts receivable in the subsidiary ledger.

For the following provinces: New Brunswick, Newfoundland, Alberta, British Columbia, Yukon, identify which sales tax or taxes they charge.

Simple interest is used in most business transactions.

GST paid on merchandise for resale is debited to

Long-Lived Assets

Current Liabilities and Payroll

Financial Reporting Concepts

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and IFRS

Non-Current Liabilities

Investments

The Cash Flow Statement

Financial Statement Analysis

Filters