P13-2C. Royce's Communication Sales Co. began operating in August. Royce's does notoffer discounts (all terms are net 30 days), and 8% PST and 5% GST are chargedon all sales. Cost of inventory is calculated at 70% of sales. The following transactions occurred in August:2023Aug,1 Royce Lamoureux invested $32,000 in Royce's CommunicationSales Co. from his personal account.2From the cash register tapes, cellular cash sales were $5,400 plus taxes67From the cash register tapes, radio cash sales were $8,150 plus taxes.Sold cellular equipment on account to Kelly's Real Estate Co.,$4,260, sales invoice No. 1201, plus taxes.9Sold radio equipment on account to Well's Hotshot Service Co,$3,100, sales invoice No. 1202, plus taxes.13Issued credit memorandum No. 1 to Kelly's Real Estate Co forcellular equipment returned, $800. (Be sure to reduce taxes payable.)Merchandise was damaged and was not returned to inventory.Well's Hotshot Service Co. paid half the amount owed from salesinvoice No. 1202, dated August 9,1620 Sold cellular equipment on account to Mountain ExplorationsCo., $5,770, sales invoice No. 1203, plus taxes.20Received proceeds of loan from the Business Development Bankof Canada, $50,000.22 Sold radio equipment on account to Walkin's Safety Supply Co.,$5,820. Sales invoice No. 1204, plus taxes.Aug 23Issued credit memorandum No. 2 to Mountain Explorations Co.for $1,420 for equipment returned from sales invoice No. 1203,dated August 20. (Remember to include taxes!) This was defectivemerchandise and was not returned to inventory.26Received payment of net amount due from Kelly's Real Estate Co.on sales invoice No. 1201, less the credit allowed.27Cash sales taken from the cash register tape showed:1. Cellular-$8,400 + taxes2. Radio-$7,600 + taxes30Sold cellular equipment on account to Well's Hotshot Service Co,$5,150 sales invoice, No. 1205, plus taxes.31Received balance from Well's Hotshot Service Co, for sales invoiceNo. 1202, dated August 9,Requireda. Journalize, record, and post as appropriate.b. Prepare a schedule of accounts receivable for the end of August 2023,compreensive probleusing sales taxes in recordingtransactions into sales, cashreceipts, and general journals;recording in the accountsreceivable subledger and postingto the general ledger, andpreparing a schedule of accountsreceivable0000 (90 min)Clock FigSchedule of Accounts Receivable$17,311.60SPECIAL JOURNALS WITH TAXES 647

Journal Entry The basic activity of the accounting process is to make the required journal entries…

Answered: 26 Received payment of net amount due…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is information from Larkspur Computers Incorporated. July 1 Sold $19,200 of computers to Robertson Company with terms 3/15, n/60. Larkspur uses the gross method to record cash discounts. Larkspur estimates allowances of $1,248 will be honored on these sales. 10 Larkspur received payment from Robertson for the full amount owed from the July transactions. 17 Sold $192,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Larkspur for its purchase of July 17. Prepare the necessary journal entries for Larkspur Computers.
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $5,100 of merchandise on account, subject to a sales tax of 7%. The cost of merchandise sold was $3,010. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Paid $47,320 to the state sales tax department for taxes collected.
In performing accounting services for small businesses, you encounter these situations pertaining to cash sales. 1. Oriole Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $53,000 and sales taxes $2,650. Sheffield Company does not segregate sales and sales taxes. Its register total for April 15 is $24,300, which includes a 89% sales tax. 2. Prepare the entries to record the sales transactions and related taxes for each client. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit ORIOLE COMPANY SHEFFIELD COMPANY >
JellyFelly sold a lamp to a cash customer, the retail price was $299.99 and sales tax is 9%. The journal entry to record this transaction would include a: O Debit to Cash for $299.99 • Credit to Sales Revenue for $326. O Credit to Sales Tax Payable $27. O Debit to Sales Revenue for $299.99
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1
Presented below is information from Metlock Computers Incorporated. July 1 10 Sold $19,600 of computers to Robertson Company with terms 3/15, n/60. Metlock uses the gross method to record cash discounts. Metlock estimates allowances of $1,274 will be honored on these sales. (Metlock records these estimates at point of sale.) Metlock received payment from Robertson for the full amount owed from the July transactions. 17 Sold $196,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Metlock for its purchase of July 17. Prepare the necessary journal entries for Metlock Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date July 1 Account Titles and Explanation Accounts…
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During the month of October 20--, The Pink Petal flower shop engaged in the following transactions: Oct. 1 Sold merchandise on account to Elizabeth Shoemaker, $1,000, plus tax of $50. Sale No. 222. 2 Issued Check No. 190 to Jill Hand in payment of October 1 balance of $500, less 2% discount. 2 Purchased merchandise on account from Flower Wholesalers, $4,000. Invoice No. 500, dated October 2, terms 2/10, n/30. 4 Purchased merchandise on account from Seidl Enterprises, $700. Invoice No. 527, dated October 4, terms 2/15, n/30. 5 Issued Check No. 191 in payment of phone expense for the month of September, $150. 7 Sold merchandise for cash, $3,500, plus tax of $175. 9 Received payment from Leigh Summers in full settlement of account, $2,000. 11 Issued Check No. 192 to Flower Wholesalers in payment of October 1 balance of $1,500. 12 Sold merchandise on account to Leigh Summers, $2,000, plus tax of $100. Sale No. 223. 12 Received payment from Meg Johnson on account,…
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Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. A. Sold $61,700 of merchandise on account, subject to a sales tax of 6%. The cost of the goods sold was $38,720. B. Paid $40,670 to the state sales tax department for taxes collected. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales…

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