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In 2020, the Wisner Corp. recorded credit sales of $427, 305. The state in which Wisner operates has a 4% sales tax, and Wisner does segregate sales tax at the time of sale. In 2020, Wisner recorded "Sales Tax Payable" of $17,094. Actual sales taxes owed to the state by Wisner in 2020 is $17, 084. Required: a. Make the necessary 2020 summary transaction entry for Wisner to record its 2020 sales. b. Make the necessary December 31, 2020 adjusting entry for Wisner related to the 2020 sales taxes it owes the state.

In 2020, the Wisner Corp. recorded credit sales of $427, 305. The state in which Wisner operates has a 4% sales tax, and Wisner does segregate sales tax at the time of sale. In 2020, Wisner recorded "Sales Tax Payable" of $17,094. Actual sales taxes owed to the state by Wisner in 2020 is $17, 084. Required: a. Make the necessary 2020 summary transaction entry for Wisner to record its 2020 sales. b. Make the necessary December 31, 2020 adjusting entry for Wisner related to the 2020 sales taxes it owes the state.

FINANCIAL ACCOUNTING
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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In 2020, the Wisner Corp. recorded credit sales of $427,305. The state in which Wisner operates has a 4% sales tax, and Wisner does segregate sales tax at the time of sale. In 2020, Wisner recorded "Sales Tax Payable" of $17,094. Actual sales taxes owed to the state by Wisner in 2020 is $17, 084. Required: a. Make the necessary 2020 summary transaction entry for Wisner to record its 2020 sales. b. Make the necessary December 31, 2020 adjusting entry for Wisner related to the 2020 sales taxes it owes the state.
Transcribed Image Text:In 2020, the Wisner Corp. recorded credit sales of $427,305. The state in which Wisner operates has a 4% sales tax, and Wisner does segregate sales tax at the time of sale. In 2020, Wisner recorded "Sales Tax Payable" of $17,094. Actual sales taxes owed to the state by Wisner in 2020 is $17, 084. Required: a. Make the necessary 2020 summary transaction entry for Wisner to record its 2020 sales. b. Make the necessary December 31, 2020 adjusting entry for Wisner related to the 2020 sales taxes it owes the state.
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