P13-5 Sales Taxes The Mauldin Company makes sales on which a 5% sales tax is assessed. The following summary trans-actions were made during 2010:1. Sales for cash of $1,665,400, excluding sales taxes2. Sales on credit of $2,820,500, excluding sales taxes3. Sales taxes of $168,220 were paid to the state government during 2010Required1. Prepare journal entries to record the preceding transactions.2. Show how the unpaid sales taxes would be reported on the December 31, 2010 balance sheet of Mauldin.Problems 641P13-6 Payroll and Payroll Taxes Bailey Dry Cleaners has six employees who were paid the following wages during 2010:Frank Johnson$ 27,00018,000Bill LongDuff Morse105,00028,000Laura StewartCindy SharpeMelissa LedbetterTotal26,00020,000$224,000The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. Thefederal unemployment rate is 0.8%. The maximum unemployment wages per employee are $7,000 for both the state andthe federal government. Income tax withholdings of 20% are applied to all employees. An 8% E.I.C.A. tax for both employeesand employers is applied to the first $100,000 of each employee's wages.Required1. Calculate the amount of payroll taxes to be paid by Bailey.2. Prepare the journal entries to record the payment of payroll and the payroll tax expense.

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P13-5 Sales Taxes The Mauldin Company makes sales on which a 5% sales tax is assessed. The following summary trans- actions were made during 2010: Problems 641 1. Sales for cash of $1,665,400, excluding sales taxes 2. Sales on credit of $2,820,500, excluding sales taxes 3. Sales taxes of $168,220 were paid to the state government during 2010 Required 1. Prepare journal entries to record the preceding transactions. 2. Show how the unpaid sales taxes would be reported on the December 31, 2010 balance sheet of Mauldin.

P13-5 Sales Taxes The Mauldin Company makes sales on which a 5% sales tax is assessed. The following summary trans- actions were made during 2010: Problems 641 1. Sales for cash of $1,665,400, excluding sales taxes 2. Sales on credit of $2,820,500, excluding sales taxes 3. Sales taxes of $168,220 were paid to the state government during 2010 Required 1. Prepare journal entries to record the preceding transactions. 2. Show how the unpaid sales taxes would be reported on the December 31, 2010 balance sheet of Mauldin.

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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