Excise and Sales Tax Calculations Barnes Company has just billed a customer for $1,044, an amount that includes a 10% excise tax and a 6% state sales tax a. What amount of revenue is recorded? b. Prepare a general journal entry to record the transaction on the books of Barnes Company Round all answers to the nearest dollar. a. Amount of recorded revenue 0 b Date Dec 31 Check General Journal Description Excise Tax Payable Sales Tax Payable To record sale on account subject to excise tax and sales tax Debit 0 credit
Excise and Sales Tax Calculations Barnes Company has just billed a customer for $1,044, an amount that includes a 10% excise tax and a 6% state sales tax a. What amount of revenue is recorded? b. Prepare a general journal entry to record the transaction on the books of Barnes Company Round all answers to the nearest dollar. a. Amount of recorded revenue 0 b Date Dec 31 Check General Journal Description Excise Tax Payable Sales Tax Payable To record sale on account subject to excise tax and sales tax Debit 0 credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Excise and Sales Tax Calculations
Barnes Company has just billed a customer for $1,044, an amount that includes a 10% excise tax and a 6% state sales tax
a. What amount of revenue is recorded?
b. Prepare a general journal entry to record the transaction on the books of Barnes Company
Round all answers to the nearest dollar.
a. Amount of recorded revenue 0
b.
Date
Dec 31
Check
General Journal
Description
Excise Tax Payable
Sales Tax Payable
To record sale on account subject to exche tax and sales tax
Debit
0
credit
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