,Solution manual for Accounting Principles 9e Canadian Volume 2
Weygandt
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,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
APPENDIX B
Sales Taxes
Learning Objectives
1. Explain the different types of sales tax.
2. Record sales taxes collected by businesses on goods and
services.
3. Record sales taxes paid on the purchase of goods and
services.
4. Record the remittance of sales taxes.
Solutions Manual B.1 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
, Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Brief Exercises
1. 1 C 5. 2 AP 9. 3 AP 13. 3 AP 17. 4
2. 2 AP 6. 2 AP 10. 3 AP 14. 3 AP
3. 2 AP 7. 3 AP 11. 3 AP 15. 3 AP
4. 2 AP 8. 3 AP 12. 3 AP 16. 4 AP
Exercises
1. 2,3 AP 3. 2,3 AP 5. 2,3 AP 7. 2,3,4 AP 9. 2,3,4 AP
2. 2,3 AP 4. 2,3 AP 6. 2,3 AP 8. 2,3,4 AP
Problems
1. 2,3 AP 3. 2,3 AP 5. 2,3,4 AP
2. 2,3 AP 4. 2,3 AP 6. 2,3,4 AP
Solutions Manual B.2 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
Legend: The following abbreviations will appear throughout the solutions
manual file.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Solutions Manual B.3 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE B.1
There are two main types of sales taxes in Canada, the federal
Goods and Services Tax (GST) or Harmonized Sales Tax (HST),
and the Provincial Sales Tax (PST), sometimes called the Retail
Sales Tax.
For a business that is a registrant that charges GST/HST to its
customers, all GST/HST paid by the business on all purchases is
recovered and does not represent a cost to the business. On the
other hand, the PST is not recoverable and the amount paid by the
business is included as a cost of purchasing an asset or paying
for a service.
From the perspective of a consumer, the two types of taxes are
viewed as the same because neither tax is fully recoverable.
LO 1 BT: C Difficulty: M Time: 10 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.4 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.2
Accounts Receivable.................................... 1,839.60
Sales........................................................ 1,600.00
GST Payable ($1,600 × 5%).................... 80.00
QST Payable ($1,600 × 9.975%)............. 159.60
To record sales on account.
Cost of Goods Sold....................................... 900.00
Merchandise Inventory .......................... 900.00
To record cost of goods sold.
Solutions Manual B.5 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.3
Sales Returns and Allowances.................... 800.00
GST Payable ($800 × 5%).............................. 40.00
QST Payable ($800 × 9.975%)....................... 79.80
Accounts Receivable ............................. 919.80
To record sales return.
Merchandise Inventory................................. 450.00
Cost of Goods Sold................................ 450.00
To record cost of goods returned.
LO 2 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.4
Accounts Receivable.................................... 1,839.60
Sales........................................................ 1,600.00
GST Payable ($1,600 × 5%).................... 80.00
QST Payable ($1,600 × 9.975%)............. 159.60
To record sales on account.
Sales Returns and Allowances.................... 800.00
GST Payable ($800 × 5%).............................. 40.00
QST Payable ($800 × 9.975%)....................... 79.80
Accounts Receivable ............................. 919.80
To record sales return. 183.96
LO 2 BT: AP Difficulty: M Time: 10 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.6 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.5
Accounts Receivable.................................... 450
Service Revenue..................................... 450
To record revenue for services
performed.
LO 2 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.6
Accounts Receivable.................................... 735
Service Revenue..................................... 700
GST Payable ($700 × 5%)....................... 35
To record revenue for services
performed.
LO 2 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.7
Merchandise Inventory................................. 4,100
GST Recoverable ($4,100 × 5%)................... 205
Accounts Payable .................................. 4,305
Purchase on account.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.8
Accounts Payable ......................................... 525
GST Recoverable ($500 × 5%)............... 25
Merchandise Inventory .......................... 500
To record credit for goods returned.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.7 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
, Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.9
Merchandise Inventory................................. 4,100
HST Recoverable ($4,100 × 15%)................. 615
Accounts Payable .................................. 4,715
To record purchase on account.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.10
Accounts Payable ......................................... 575
HST Recoverable ($500 × 15%)............. 75
Merchandise Inventory .......................... 500
To record credit for goods returned.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.11
Supplies ($600 × 1.06)................................... 636
GST Recoverable ($600 × 5%)...................... 30
Cash......................................................... 666
To record cash purchase of supplies.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.12
Supplies ......................................................... 600
HST Recoverable ($600 × 15%).................... 90
Cash......................................................... 690
To record cash purchase of supplies.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.8 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
Weygandt
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
APPENDIX B
Sales Taxes
Learning Objectives
1. Explain the different types of sales tax.
2. Record sales taxes collected by businesses on goods and
services.
3. Record sales taxes paid on the purchase of goods and
services.
4. Record the remittance of sales taxes.
Solutions Manual B.1 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
, Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Brief Exercises
1. 1 C 5. 2 AP 9. 3 AP 13. 3 AP 17. 4
2. 2 AP 6. 2 AP 10. 3 AP 14. 3 AP
3. 2 AP 7. 3 AP 11. 3 AP 15. 3 AP
4. 2 AP 8. 3 AP 12. 3 AP 16. 4 AP
Exercises
1. 2,3 AP 3. 2,3 AP 5. 2,3 AP 7. 2,3,4 AP 9. 2,3,4 AP
2. 2,3 AP 4. 2,3 AP 6. 2,3 AP 8. 2,3,4 AP
Problems
1. 2,3 AP 3. 2,3 AP 5. 2,3,4 AP
2. 2,3 AP 4. 2,3 AP 6. 2,3,4 AP
Solutions Manual B.2 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
Legend: The following abbreviations will appear throughout the solutions
manual file.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Solutions Manual B.3 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE B.1
There are two main types of sales taxes in Canada, the federal
Goods and Services Tax (GST) or Harmonized Sales Tax (HST),
and the Provincial Sales Tax (PST), sometimes called the Retail
Sales Tax.
For a business that is a registrant that charges GST/HST to its
customers, all GST/HST paid by the business on all purchases is
recovered and does not represent a cost to the business. On the
other hand, the PST is not recoverable and the amount paid by the
business is included as a cost of purchasing an asset or paying
for a service.
From the perspective of a consumer, the two types of taxes are
viewed as the same because neither tax is fully recoverable.
LO 1 BT: C Difficulty: M Time: 10 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.4 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.2
Accounts Receivable.................................... 1,839.60
Sales........................................................ 1,600.00
GST Payable ($1,600 × 5%).................... 80.00
QST Payable ($1,600 × 9.975%)............. 159.60
To record sales on account.
Cost of Goods Sold....................................... 900.00
Merchandise Inventory .......................... 900.00
To record cost of goods sold.
Solutions Manual B.5 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.3
Sales Returns and Allowances.................... 800.00
GST Payable ($800 × 5%).............................. 40.00
QST Payable ($800 × 9.975%)....................... 79.80
Accounts Receivable ............................. 919.80
To record sales return.
Merchandise Inventory................................. 450.00
Cost of Goods Sold................................ 450.00
To record cost of goods returned.
LO 2 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.4
Accounts Receivable.................................... 1,839.60
Sales........................................................ 1,600.00
GST Payable ($1,600 × 5%).................... 80.00
QST Payable ($1,600 × 9.975%)............. 159.60
To record sales on account.
Sales Returns and Allowances.................... 800.00
GST Payable ($800 × 5%).............................. 40.00
QST Payable ($800 × 9.975%)....................... 79.80
Accounts Receivable ............................. 919.80
To record sales return. 183.96
LO 2 BT: AP Difficulty: M Time: 10 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.6 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
,Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.5
Accounts Receivable.................................... 450
Service Revenue..................................... 450
To record revenue for services
performed.
LO 2 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.6
Accounts Receivable.................................... 735
Service Revenue..................................... 700
GST Payable ($700 × 5%)....................... 35
To record revenue for services
performed.
LO 2 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.7
Merchandise Inventory................................. 4,100
GST Recoverable ($4,100 × 5%)................... 205
Accounts Payable .................................. 4,305
Purchase on account.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.8
Accounts Payable ......................................... 525
GST Recoverable ($500 × 5%)............... 25
Merchandise Inventory .......................... 500
To record credit for goods returned.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.7 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
, Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow Accounting Principles, Ninth Canadian Edition
BRIEF EXERCISE B.9
Merchandise Inventory................................. 4,100
HST Recoverable ($4,100 × 15%)................. 615
Accounts Payable .................................. 4,715
To record purchase on account.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.10
Accounts Payable ......................................... 575
HST Recoverable ($500 × 15%)............. 75
Merchandise Inventory .......................... 500
To record credit for goods returned.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.11
Supplies ($600 × 1.06)................................... 636
GST Recoverable ($600 × 5%)...................... 30
Cash......................................................... 666
To record cash purchase of supplies.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
BRIEF EXERCISE B.12
Supplies ......................................................... 600
HST Recoverable ($600 × 15%).................... 90
Cash......................................................... 690
To record cash purchase of supplies.
LO 3 BT: AP Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual B.8 Appendix B
© 2022 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited.
