4. Province of Ontario - HST 13%. Walmart purchased 3 chairs from Chair Company on account for $300. Walmart intends to use this chair in its offices. 5. Province of Ontario - HST 13%. Walmart sells 600 chairs to consumers for $120,000 (cost $60,000). Customers paid cash. 6. Province of Manitoba - PST 7%, GST 5% Walmart purchases 200 chairs from Chair Company on account for $20,000. Walmart intends to resell these chairs to consumers and provided a PST tax exemption number to the supplier at the time of purchase (so no PST).

4. Province of Ontario - HST 13%. Walmart purchased 3 chairs from Chair Company on account for $300. Walmart intends to use this chair in its offices. 5. Province of Ontario - HST 13%. Walmart sells 600 chairs to consumers for $120,000 (cost $60,000). Customers paid cash. 6. Province of Manitoba - PST 7%, GST 5% Walmart purchases 200 chairs from Chair Company on account for $20,000. Walmart intends to resell these chairs to consumers and provided a PST tax exemption number to the supplier at the time of purchase (so no PST).

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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Labrador Inc. sold 350 oil drums to Tesla Manufacturing for $75 each. In addition to the $75 sale price per drum, there is a $1 per drum federal tax and a 7% provincial sales tax. What journal entry should be made to record this sale? a. Debit Accounts Receivable 28,438; credit Sales Revenue 28,438. b. Debit Accounts Receivable 26,250; credit Sales Revenue 26,250. c. Debit Accounts Receivable 28,438; credit Federal Sales Taxes Payable 350; credit Provincial Sales Taxes Payable 1,838; credit Sales Revenue 26,250. d. Debit Accounts Receivable 26,250; debit Taxes Expense 2,188; credit Federal Sales Taxes Payable 350; credit Provincial Sales Taxes Payable 1,838; credit Sales Revenue 26,250.
b. Al Huda enterprises supplies small water coolants to various government and private sector entities. The price for each coolant is 75 OMR and the cost is 55 OMR. On 01/01/2015, AI Huda signed a contract with SQU to supply 350 water coolants. Al Huda offers a 5% volume discount if an entity purchases 300 or more units. On 20/05/2015, Al Huda delivered 270 coolants to SQU. From past experience, Al Huda believes that SQU will meet the discount volume threshold. Required For Al Huda Enterprises: DISTR a. Prepare the journal entry, if any, on 01/01/2015 b. Prepare the journal entry on 20/05/2015
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Sky Probe sells state-of-the-art telescopes to individuals and organizations interested in studying the solar system. At December 31 last year, the company’s inventory amounted to $250,000. Dur-ing the first week of January this year, the company made only one purchase and one sale. These transactions were as follows:Jan. 2 Sold one telescope costing $90,000 to Central State University for cash, $117,000.Jan. 5 Purchased merchandise on account from Lunar Optics, $50,000. Terms, net 30 days.a. Prepare journal entries to record these transactions assuming that Sky Probe uses the perpetualinventory system. Use separate entries to record the sales revenue and the cost of goods soldfor the sale on January 2.b. Compute the balance of the Inventory account on January 7. c. Prepare journal entries to record the two transactions, assuming that Sky Probe uses the peri-odic inventory system. d. Compute the cost of goods sold for the first week of January assuming use of a periodic inven-tory…
Case No. 1: Hi-Mart Hi-Mart, a grocery retailer situated in Manila, operates a customer loyalty program. The entity grants program members with loyalty points every time they spend a specific amount on groceries. Program members can redeem the points for further purchases. The points have no expiry date. In 2X18, the sales amounted to P7,000,000 based on stand-alone selling price. During the same year, the entity granted 10,000 points, but the management expected that only 80% or 8,000 points would be redeemed. The stand-alone selling price of each loyalty point is estimated at P100. On December 31, 2X18, 4 800 points have been redeemed. In 2X19, the management revised its expectations and now expected that 90% or 9,000 points would be redeemed altogether. During 2x19, the entity redeemed 2.400 points 1. What amount should be reported as sales revenue, including the revenue earned from points for 2X18? 2. What is the revenue earned from loyalty points for 2X19?
Isabel Company is a manufacturer of deodorant and sells its product through local retailers. The deodorant costs P64 to the retailer. Retailers sell the product to its customers and for each product purchased by the customer, a coupon of P20 discount is given and may be used on future purchase of the same product. Retailers are reimbursed for the discount by the manufacturer when customers redeem their coupons. During the current year, the entity sold 10,000 deodorants to local retailers at P64, each or P640,000. The entity expected. that 80% of the coupons issued will be redeemed. At year end, the entity paid the retailers P50,000 as reimbursement. Required: 1. Compute the stand-alone selling price of the rebate coupons. 2. Allocate the transaction price between the products sold and the rebate coupons. 3. Prepare journal entries for the current year.
Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED:Compute for the premiums expense for the year ended December 31, 2019 and 2020.
Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED: Compute for the premium liability for the year ended December 31, 2019 and 2020.
Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED: How much net cash did the entity receive (give) with regards to the premium transactions for the year 2019 and 2020?