ACC 113 Lecture Notes - Lecture 14: Sales Taxes In Canada, Accounts Payable, Qst
19 Dec 2020
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Pre-arranged agreement between a company and a lender to allow the company to borrow up to an agreed-upon amount: to help manage temporary cash shortfalls. Interest is charged using a floating (or variable) interest rate. Security (collateral) may be required by bank. Combined into one harmonized sales tax hst. May or may not be included in sale price. Must be remitted periodically to respective governments: when paid, debit sales tax payable account and credit cash. Businesses that own property pay property taxes for each calendar year to municipal or provincial governments. Property taxes are calculated at a specified rate for every of the assessed value of the property. Upon receipt of the property tax bill an expense is recorded for the months that have passed. When paid, expense is recorded for additional months that have passed, and prepaid is set up for the remaining months. Prepaid is cleared to expense at the end of year.
