Question

Show how you arrived at the totals by Line item on the GST/HST return by completing the following

Additional information--$1,400 HST installment was paid to the CRA for this quarter (Hint—line 110)

Date	Invoice #	Customer Name/Description	Amount with tax	HST	101	103
Dec. 4	11100	Stephen Conway - Ski Lessons	$1,130.00	$130.00	$1,000.00	$130.00
Dec. 6	11200	Michigan University Ski Team (USA)	$3,300.00
Dec. 19	11300	Mississauga Community Center - Cloths, net of 10% volume discount	$2,260.00
Jan. 2	11400	High Park Ski Club - skis	$3,390.00
Jan. 8	11500	North Toronto Ski Club-lessons	$2,260.00
Jan. 13	11600	Haliburton tribe (Aboriginal)—snowshoes delivered to reservation	$5,300.00
Jan. 20	11700	University of Ottawa—ski trip	$6,780.00
Jan. 27	-	Recovery of Bad debt--Retail sale to local customer	$791.00
Feb. 2	11800	YWCA in Waterloo—helmes, ski boots	$3,955.00
Feb. 10	11900	Sale to Neiman Markup in New York, USA	$8,900.00
Feb. 15	-	Bad debt—retail customer sale	$452.00
Purchase information
Dec. 10		Advertising	$1,356.00	$156.00
Dec. 19		Courier charge for delivery	$135.60
Jan. 5		Purchase various inventory	$20,340.00
Jan. 21		Purchase of packaging equipment from a local supplier	$6,554.00
Jan. 30		Insurance policy for fire and theft	$1,700.00
Feb. 2		Business Entertainment—client event (not employee reimbursement)	$3,616.00
Feb. 5		Birthday present to senior vice president’s daughter	$840.00
Feb. 8		Reimbursement to employee (using Method 1) for expenses used 100% in the company's commercial activities - inclusive of taxes	$560.00
Feb. 16		Purchase of goods (for re-sale), from Denver Colorada, USA (Assessed Canadian Equivalent is= $1,600)	$1,380.00

Answer 1

Hi,

I have arrived at the conclusion that the tax is 13%, based on the following calculation.

Invoice# 11100

Here we have Total amount without tax($1000), Tax amount($130) & Total amount with tax ($1130)

$1000*X=$130 Here X being tax

Hence by cross multiplying 130/1000=X .i.e. 0.13=Tax which is 13%

1000*13%=130 tax amount, Amount with tax becomes $1130 ($1000+$130)

Similarly we have the next invoice Invoice# 11200, where the total amount with tax is given that is $3,300, we need to find the total amount without tax and the tax amount.

We get $3300 by adding 13% tax, hence the total amount with tax is at 113% .i.e.

$3300 - 113

? - 100 Here ? is original amount .i.e. amount before adding tax

3300*100/113= $2920.35

$2920.35 is the amount without tax

Tax amount is 3300-2920.35=379.65 rounded off to $380

When we come down to purchase information for advertising we have Amount with tax ($1356) and tax amount ($156)

Here tax amount is $1200, 1356-156= $1200

Cross verify: 1200*0.13=$156

Similarly the entire sheet can be completed using the above example

I hope my solution was of use to you, please let me know if you have any further doubts on this.