On July 5, Gunther Company recorded sales of merchandise inventory on account, $50,000. The sales were subject to sales tax of 5%. On August 15, Gunther Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound entry for this transaction.) Date Jul. 5 Accounts and Explanation Debit Credit Requirement 2. Journalize the transaction to record the payment of sales tax to the state on August 15. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Aug. 15

On July 5, Gunther Company recorded sales of merchandise inventory on account, $50,000. The sales were subject to sales tax of 5%. On August 15, Gunther Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound entry for this transaction.) Date Jul. 5 Accounts and Explanation Debit Credit Requirement 2. Journalize the transaction to record the payment of sales tax to the state on August 15. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Aug. 15

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...

See similar textbooks

Similar questions

Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
On July 5, Brenner Company recorded sales of merchandise inventory on account, $25,000. The sales were subject to sales tax of 10%. On August 15, Brenner Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.
On July 5, Bramley Company recorded sales of merchandise inventory on account, $45,000. The sales were subject to sales tax of 8%. On August 15, Bramley Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15 Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound entry for this transaction.) Accounts and Explanation Date Jul. 5 Debit Credit
On July 5, Feather Company recorded sales of merchandise inventory on account, $20,000. The sales were subject to sales tax of 9%. On August 15, Feather Company paid $1,200 of sales tax to the state. Requirements 1. Joumalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation Jul. 5 Accounts Receivable Sales Revenue Sales Tax Payable To record sales revenue on account and the related sales tax. Requirement 2. Journalize the transaction to record the payment of saltax to the state. Date Aug. 15 Accounts and Explanation Debit Credit 21,800 20,000 1,800 Debit Credit
on july , family company recorded merchandise inventory on account , $50,000. the sales were subject to sales tax on 5% on august 15 family company paid the sales tax owed to the state from the july 5 transaction . requirements:- (A) journalize the transaction to record the sale on july 5. ignore the cost of goods sold. (B) journalize the transaction to record the sales tax to state on august 15.
S11-2 Recording sales tax On July 5, Williams Company recorded sales of merchandise inventory on account, $55,000. The sales were subject to sales tax of 4%. On August 15, Williams Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15.
Journalize the entries to record the following selected transactions:a. Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500.b. Paid $39,650 to the state sales tax department for taxes collected.
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $5,100 of merchandise on account, subject to a sales tax of 7%. The cost of merchandise sold was $3,010. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Paid $47,320 to the state sales tax department for taxes collected.
On March 25, Osgood Company sold merchandise on account, $2,900, terms n/30. The applicable sales tax percentage is 8%. Record the transaction. If an amount box does not require an entry, leave it blank.
On March 25, Osgood Company sold merchandise on account, $2,700 terms n/30. The applicable sales tax percentage is 7%. Record the transaction. If an amount box does not require an entry, leave it blank.
Sales tax transactions Journalize the entries to record the following selected transactions:A. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000.B. Paid $61,750 to the state sales tax department for taxes collected
Stockton Company sold goods on account with a sales price of $70,000 on August 17. The terms of the sale were 2/10, n/30. INSTRUCTIONS: Record the sale using the gross method of accounting for cash discounts. Record the sale using the net method of accounting for cash discounts. Assume that the payment is received on August 25. Record receipt of the payment using both the gross method and the net method. Assume that payment is received on September 15. Record receipt of the payment using both the gross method and the net method. Is the account used for the net method an asset, liability, revenue, or expense? Which method makes more theoretical sense—the gross method or the net method? Why? Why don’t more firms use the net method?