Answered: Evergreen Furniture Gallery sold a…

Evergreen Furniture Gallery sold a dining table set for $3,600 subject to a 7.5% sales tax. The entry in the general journal will include a credit to Sales for

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

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On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $3,100 on account. If the sales tax on the sale is 5%, the journal entry to record the sale would include: Multiple Choice a debit to Accounts Receivable for $3,255 a debit to Sales Tax Payable for $155 a debit to Sales for $3,100 a credit to Sales for $3,255
Enter the following transactions in the General Journal. Calculate GST @ 5% and PST @ 6% on all transactions as applicable Note the following: o All amounts given are pre-tax values. o Discounts are determined on pre-tax amounts. 2 Bought merchandise on account from KFG Manufacturing, $7,500. Invoice #321. terms 2/10, n/30. July 4. Paid Johnson's Trucking for transporting the merchandise bought from KFG Manufacturing, $350. Paid by cheque #65. 4. Sold $435 worth of merchandise to Alfred Wren. He paid by cheque # 42. 4. A. Wren returned $65 worth of merchandise due to damage. A full cash refund was issued. 11. Paid KFG Manufacturing for Invoice #321. Cheque #66. 12. The owner of KFG Manufacturing withdraw cash of $500 from the business and took a used desk valued at $350. 15. Bought equipment for the store for $2650.00 16. Paid telephone expense $900 (include GST & PST)
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Welborn Stores offers a coupon on its website for $5 off the customer’s next purchase of $30 or more. Welborn also printed coupons at the bottom of its sales receipts for 10% off the customer’s next purchase of any amount. All sales are subject to a 5% sales tax (assessed on the amount charged to the sales account). Journalize the following transactions: A customer purchases $45 of merchandise, submits the $5 coupon, and pays cash. The cost of the merchandise sold is $20. A customer purchases $100 of merchandise, submits the 10% coupon, and pays with a VISA credit card. The cost of the merchandise sold is $45.
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 5.5% service charge for sales on its credit card. Access deducts a 4.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $700 of merchandise on credit (that had cost $350) to Natara Morris. 5 Sold $6,700 of merchandise (that had cost $3,350) to customers who used their Zisa cards. 6 Sold $5,656 of merchandise (that had cost $2,828) to customers who used their Access cards. 8 Sold $4,680 of merchandise (that had cost $2,340) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $606 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
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Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 5.5% service charge for sales on its credit card. Access deducts a 4.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $600 of merchandise on credit (that had cost $240) to Natara Morris. 5 Sold $7,100 of merchandise (that had cost $2,840) to customers who used their Zisa cards. 6 Sold $6,152 of merchandise (that had cost $2,461) to customers who used their Access cards. 8 Sold $4,300 of merchandise (that had cost $1,720) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $739 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $500 of merchandise on credit (that had cost $250) to Natara Morris. 5 Sold $6,800 of merchandise (that had cost $3,400) to customers who used their Zisa cards. 6 Sold $5,616 of merchandise (that had cost $2,808) to customers who used their Access cards. 8 Sold $4,890 of merchandise (that had cost $2,445) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $395 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
Use the following transactions to answer the questions. Use a 7% sales tax rate. Total and rule the sales journal. Aug. 1 Sold merchandise on account to Beth Deleo, $1,500, plus sales tax. 5 Sold merchandise on account to Bill Serrato, $1,850, plus sales tax. 11 Issued credit memorandum to Beth Deleo for $428, including sales tax of $28. 22 Sold merchandise on account to Donna Whitten, $680, plus sales tax. 25 Sold merchandise on account to Rob Thompson, $750, plus sales tax. Prepare the sales journal using the above transactions, as appropriate. If required, round answers to the nearest cent. SALES JOURNAL Page 1 Accounts Sales Tax Receivable Sales Payable Date Sale No. To Whom Sold Post. Ref. Debit Credit Credit Aug. 1 Beth Deleo Bill Serrato 22 Donna Whitten 25 Rob Thompson Prepare the general journal using the above transactions, as appropriate. If an amount box does not require, leave it blank. Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 1 Aug. 11 2. 3 3.
Replace all taxes given in the question with HST of 13%
Abbey Co. sold merchandise to Gomez Co. on account, $35,000, subject to a sales tax of 5%. The cost of the merchandise sold is $24,500. When recording the general journal entry, how much should be credited to the liability account called sales tax payable?
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