Excise and Sales Tax Calculations Fulton Corporation initially records its sales at amounts that exclude any related excise and sales taxes. During June, Fulton recorded total sales of $600,000. An analysis of June sales indicated the following: 1. 30% of sales were subject to both a 10% excise tax and a 6% sales tax. 2. 50% of sales were subject only to the sales tax. 3. The balance of sales was for labor charges not subject to either excise or sales tax. Required a. Calculate the related liabilities for excise and sales taxes for June. b. Prepare the necessary journal entry at June 30 to record the monthly payment of excise tax and sales tax to the government. a. Sales Tax Liability $Answer Excise Tax Liability $Answer b. General Journal Date Description Debit Credit Jun.30 Excise Tax Payable Answer Answer Sales Tax Payable Answer Answer Cash Answer Answer To record the payment of excise and sales taxesto the government.
Excise and Sales Tax Calculations Fulton Corporation initially records its sales at amounts that exclude any related excise and sales taxes. During June, Fulton recorded total sales of $600,000. An analysis of June sales indicated the following: 1. 30% of sales were subject to both a 10% excise tax and a 6% sales tax. 2. 50% of sales were subject only to the sales tax. 3. The balance of sales was for labor charges not subject to either excise or sales tax. Required a. Calculate the related liabilities for excise and sales taxes for June. b. Prepare the necessary journal entry at June 30 to record the monthly payment of excise tax and sales tax to the government. a. Sales Tax Liability $Answer Excise Tax Liability $Answer b. General Journal Date Description Debit Credit Jun.30 Excise Tax Payable Answer Answer Sales Tax Payable Answer Answer Cash Answer Answer To record the payment of excise and sales taxesto the government.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Excise and Sales Tax Calculations
Fulton Corporation initially records its sales at amounts that exclude any related excise and sales taxes. During June, Fulton recorded total sales of $600,000. An analysis of June sales indicated the following:
1. 30% of sales were subject to both a 10% excise tax and a 6% sales tax.
2. 50% of sales were subject only to the sales tax.
3. The balance of sales was for labor charges not subject to either excise or sales tax.
Required
a. Calculate the related liabilities for excise and sales taxes for June.
b. Prepare the necessary
a.
| Sales Tax Liability | $Answer |
| Excise Tax Liability | $Answer |
b.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Jun.30 | Excise Tax Payable | Answer | Answer |
| Sales Tax Payable | Answer | Answer | |
| Cash | Answer | Answer | |
| To record the payment of excise and sales taxesto the government. |
.
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