ACC402 Lecture 2: C
Document Summary
Gst/hst and accounting: no matching, no allocation (amortization, etc. , some deductions don"t influence gst (e. g. , wages, interest) Example alberta business: gaap income statement. Capital expenditures: ,000,000 for a building (40% commercial, ,000,000 for equipment (70% commercial) Purchases of goods for resale were ,500,000. Other expenses of ,000, related to fully taxable supplies. ,000,000 of sales were fully taxable, the remainder were. No provincial sales taxes in alberta exempt. Gst payable (refund) ($ 75,000) ( 10,000) ( 40,000) ( 50,000) Don"t track itcs, except for capital expenditures. Apply given % to gst inclusive sales. 1% credit on first ,000 (varies by province, see figure 21-4 in text) Example: annual filing retail store in alberta has annual sales of ,000, resulting in gst included sales of ,250. Input tax credits when invoice is issued. Usually the same as income tax fiscal year: if non-calendar income tax year - can use calendar year for.
