Furniture “R” Us (Furniture) Inc., located in Calgary, Alberta, sells office furniture to local businesses in Alberta. Furniture’
1.
Furniture “R” Us (Furniture) Inc., located in Calgary, Alberta, sells office furniture to local businesses in Alberta. Furniture’s sales have never been more than $400,000 annually. Furniture has chosen to file its GST returns on a quarterly basis. The following information relates to the first quarter (January to March 2022): Excluding GST Sales $65,000 Cost of Goods Sold 29,250 Actual Inventory purchases in the quarter 31,250 Salaries 15,000 Interest on loan 900 Capital expenditure 7,500 Required: a) Determine the GST owing (or refundable) for the first quarter of 2022, using the QUICK method. As this is an Alberta province the appropriate % is 1.8% (for resale type companies). b) Determine the GST owing (or refundable) for the first quarter of 2022, using the REGULAR method.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
