EssayNICE | 24/7 Homework Help

Essaynice Will Help You Write Your Essays and Term Papers

Answered » You can buy a ready-made answer or pick a professional tutor to order an original one.

10.1 Recording sales that include PST, GST, and HST in the sales journal. 1) Provincial Sales Tax…

by | Sep 9, 2023 | accounting

 

10.1   Recording sales that include PST, GST, and HST in the sales journal.

1) Provincial Sales Tax Payable is a

A) liability account with a debit balance.

B) liability account with a credit balance.

C) contra-asset account with a debit balance.

D) contra-asset account with a credit balance.

2) The liability account used to record HST owed is

A) Sales Tax Expense.

B) Prepaid Taxes.

C) HST Payable.

D) Sales.

3) Unlimited Materials sold goods for $1,800 plus 5% GST to a charge customer, terms n/30. Which entry is required to record this transaction?

A) Debit Accounts Receivable for $1,890; credit GST Payable $90 and credit Sales for $1,800

B) Debit Cash for $1,890; credit Sales for $1,890

C) Debit Accounts Receivable for $1,800; credit Sales for $1,800

D) Debit Accounts Receivable $1,890; credit Sales, $1,890

4) The contra-revenue accounts include

A) HST Payable.

B) Sales Returns and Allowances.

C) Sales Discount.

D) Both B and C are correct.

5) Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The invoice included a 6% provincial sales tax, 5% GST, and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the original sale would include

A) a debit to Accounts Receivable for $693.75.

B) a debit to Accounts Receivable for $625.

C) a credit to Sales for $693.75.

D) a debit to Sales for $625.

6) Sold merchandise subject to HST at 13%, accepting cash. This will be recorded with

A) a credit to an asset account.

B) a credit to a liability account.

C) a credit to Capital.

D) None of these are correct.

7) The total of all cash and credit sales, net of HST, equals

A) sales returns and allowances.

B) net sales.

C) input tax credit.

D) gross sales.

8) The normal balance of the HST Collected is

A) a debit.

B) a credit.

C) zero.

D) positive.

9) PST Payable is a

A) revenue account with a credit balance.

B) cost of goods sold account with a debit balance.

C) contra revenue account with a debit balance.

D) liability account.

10) The normal balance of Provincial Sales Tax Payable is a credit.

11) HST collected by the seller increases the seller's total revenue.

12) Provincial Sales Tax Payable represents an asset on the books of the seller.

13) GST Collected is an owner's equity account with a debit balance.

14) PST Payable is a Liability Account.

15) Explain why the account Provincial Sales Tax Payable is credited when a sale is made subject to that tax?

  

HOME TO CERTIFIED WRITERS

Why Place An Order With Us?

  • Certified Editors
  • 24/7 Customer Support
  • Profesional Research
  • Easy to Use System Interface
  • Student Friendly Pricing

Have a similar question?

PLAGIRAISM FREE PAPERS

All papers we provide are well-researched, properly formatted and cited.

TOP QUALITY

All papers we provide are well-researched, properly formatted and cited.

HIGHLY SECURED

All papers we provide are well-researched, properly formatted and cited.

Open chat
1
Powered by essaynice
Hello! Welcome to to our whatapp support.
We offer READY solutions, HIGH QUALITY PLAGIARISM FREE essays and term-papers.

We are online and ready to help