On January 1, 2022, the ledger of Sunland Company contains these liability accounts.Accounts PayableSales Taxes PayableUnearned Service Revenue12During January, these selected transactions occurred.1420Jan. 5 Sold merchandise for cash totaling $20.520, which includes 8% sales taxes.21$56,500•257,90015.500Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.]Paid state revenue department for sales taxes collected in December 2021 ($7,900).Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-yearwarranty.Borrowed $24.750 from Girard Bank on a 3-month 8%, $24.750 noteSold merchandise for cash totaling $11,016, which includes 8% sales taxes.4 On January 1, 2022, the ledger of Sunland Company contains these liability accounts.Accounts PayableSales Taxes PayableUnearned Service Revenue12During January, these selected transactions occurred.1420Jan. 5 Sold merchandise for cash totaling $20.520, which includes 8% sales taxes.21$56,500•257,90015.500Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.]Paid state revenue department for sales taxes collected in December 2021 ($7,900).Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-yearwarranty.Borrowed $24.750 from Girard Bank on a 3-month 8%, $24.750 noteSold merchandise for cash totaling $11,016, which includes 8% sales taxes.4

Calculation of sales tax included in sales made on Jan 5(Total Sales Value x Tax Rate) / 100+Tax…

Jan. 5 12 14 20 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2021 ($7.900). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-yea

Jan. 5 12 14 20 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2021 ($7.900). Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-yea

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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