Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year).

Q: Cheyenne Corporation made credit sales of $30,600 which are subject to 7% sales tax. The corporation…

A: Journal entries are prepared in a proper order which is as per the principle of double-entry…

Q: Oswego Clay Pipe Company sold $45,800 of pipe to Southeast Water District 45 on April 12 of the…

A: The journal entries are prepared to record the transactions on regular basis. The purchase and sales…

Q: Describe the revenue recognition policy that the company should follow: Comfort Furniture sells…

A: The revenue from sale of goods should be recognised in the books when: Risk and reward of ownership…

Q: For questions 24-25, use the following information; Posner Co. is a retail store operating in a…

A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…

Q: Arrow Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Arrow Manufacturing   A Opening refund liability $400,000 B Less: Returns prior to 2021…

Q: Flounder Corporation made credit sales of $30,600 which are subject to 5% sales tax. The corporation…

A: Lets understand the basics.Journal entry is required to make to record event and transaction that…

Q: Accounting  A company purchased inveritory worth $20,000 on credit terms of 2/10, net 30. The…

A: A discount period refers to a specific duration during which a  fiscal instrument,  generally a bond…

Q: Indigo Corporation made credit sales of $19,800 which are subject to 7% sales tax. The corporation…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Barans Company purchased merchandise on account from a supplier for $13,000, terms 2/10, n/30.…

A: In case of no information for inventory system, the perpetual method is inventory is assumed. Using…

Q: A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies…

A: The expenses should be recorded when they actually incurred. Journal entries are used to record…

Q: Sheridan Bikes Ltd. reports pre-tax cash sales of $4,400 on October 1. (a) Record the sales assuming…

A: Sales tax is one of the indirect tax which is being imposed by goverment. Sales tax is generally…

Q: During December, Far Eas Services makes a credit sale of $1.600 (before sales taxes). The state…

A: A sale is a transaction in which goods or services are exchanged for a predetermined amount of…

Q: Seacost Magazine sells subscriptions for $36 for 18 issues. The company collects cash in advance and…

A: Under the Accrual Basis of Accounting, revenue is accounted for when it is earned, and expense is…

Q: Sage sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold…

A: Financial transactions are initially recorded in the form of journal entries by the company.

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: Refund liability:- The amount of consideration that will be reimbursed to consumers that the…

Q: Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has…

A: Sales tax = $3,500*10% Sales tax = $350

Q: Record transaction 1 in the applicable general ledger accounts using the perpetual inventory system.

A: The perpetual inventory system of recording the journal entries when the sales are made is that…

Q: During December, Rainey Equipment made a 676,000 credit sale. The state sales tax rate is 6% and the…

A: It is pertinent to note that sales tax collected is a liability to the entity and the same need to…

Q: On June 11 of the current year, a retailer sells a trimmer for $400 with a one-year warranty that…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: a. Show the effects of these transactions on the financial statements using a horizontal statements…

A: Horizontal Statement Model Financial statement elements is arranged  horizontally across a page in…

Q: Prepare the entry to record Ayayai's cash sales. (If no entry is required, select "No Entry" for the…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: Sales revenue for a sporting goods store amounted to $535,000 for the current period. All sales are…

A: The question is based on the concept of Financial Accounting.

Q: Polar Company purchased a Truck for the company use. The price was $48,000 plus 7% sales taxes.…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: A plumbing supply company has a discount policy which states that, if a customer pays within 15 days…

A: Discount: Discount is the interest value included in the face value of discount note.

Q: Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much…

A: As per IFRS, 'Financial Instruments' financial liabilities should be recorded initially at their…

Q: Please help. The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it…

A: The company that sells goods to its customers with warranty are required to record the warranty…

Q: Loudoun Trucking purchases 4,750 truck tires. The federal excise tax is $0.13 per tire. Find the…

A: The amount of excise tax can be calculated  Excise tax =Number of truck tires purchased× Federal…

Q: Bulldog Inc. recently made a $75,000 purchase from a vendor. The vendor will accept payment by check…

A: ACH Payment means Automated Clearing House Network. It is an electronic fund transfer which is made…

Q: Headland sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is…

A: Financial transactions are initially recorded in the form of journal entries by the company. Under…

Q: Sarasota Corporation made credit sales of $31,200 which are subject to 5% sales tax. The corporation…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Vaughn Corporation made credit sales of $39,600 which are subject to 5% sales tax. The corporation…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: A business sells $100,000 of products to a customer on account and collects 6% sales tax. Cost of…

A: a. Date Account Titles and Explanation Debit Credit   Accounts receivable $106,000…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: a. Prepare the year-end adjusting entry for estimated returns:

Q: During December, Far West Services makes a $3,600 credit sale. The state sales tax rate is 6% and…

A: Total Sales tax payable =  Sales revenue x sales tax rate = 3600 x (6+2.5)% = $306

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.