rchandise, and the total amount is credited to Sales. During January, Sales was credited $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be) Sales 18,000 Sales Taxes Payable 18.000

rchandise, and the total amount is credited to Sales. During January, Sales was credited $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be) Sales 18,000 Sales Taxes Payable 18.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: During the month of June, Marigold Boutique recorded cash sales of $323,400 and credit sales of…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: In July 20X2, a company sold goods at standard sales tax rate with a net value of $200,000, goods…

A: Computation of Output tax is as follows: Output tax =$200000 ×15%=$30000 Computation of Input tax is…

Q: PRACTICE PROBLEM Listed below are selected transactions of Scultz Department Store for the current…

A: A balance sheet is a representation of an individual's personal or corporation's financial balances…

Q: During the month of June, Rowling Boutique recorded cash sales of $233,200 and credit sales of…

Q: At the end of March, account balances are: 190 Def. VAT: 20.000 TL. 191 Ded. VAT: 30.000 TL, 391…

A: Tax Payable:- It is the payment which one made on the income earned within the country or from…

Q: Bramble General Store has total receipts for the month of $34980 including sales taxes. If the sales…

A: SALES VALUETotal Sales Value Includes Sales Price Plus Sales Tax.Sales Tax Computed := Sales Value…

Q: ABC Corporation has the following sales during the month of October: Sales to a private company,…

A: VAT Payable Value-added tax (VAT) output exemption in the Philippines refers to sales or…

Q: Mason Corp. operates in a province with a 8% PST. The store must also collect5% GST on all sales.…

A: Accounts receivable is the ledger that represents the amount of sales made on credit and pending for…

Q: In January, gross earnings in Sheridan Company were $78,000. The 7.65% FICA tax rate consists of the…

A: FICA : It is a mandatory payroll tax and it includes Medicare tax and social security tax.

Q: Union Apparel has sales including sales taxes for the month of $550,700. If the sales tax rate is…

A: Sales is the primary way for the company to generate revenue by selling the products or services.…

Q: Julie's Boutique has total receipts for the month of $30,660 including sales taxes. If the sales tax…

A: Given : Total receipts including Sales tax = $ 30,660 Sales tax = 5 % Sales would be = Total…

Q: During December, Far West Services makes a $5,000 credit sale. The state sales tax rate is 6% and…

A: Debit what comes in and credit what goes out Debit the receiver and credit the giver Debit all the…

Q: Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has…

A: Sales tax = $3,500*10% Sales tax = $350

Q: In January, gross earnings in Concord Company were $40,000. The 7.65% FICA tax rate consists of the…

A: Payroll accounting is a part of accounting through which an employer can effectively manage payroll…

Q: NYFG, Inc.l has sales including sales taxes for the month of $445,200. If the sales tax rate is…

A: Sales = Total sales / (1 + sales tax rate) = $445,200 / (1 + 0.06) = $420,000

Q: Oct. 1: Sold a six-month subscription (starting on November 1), collecting cash of $270, plus sales…

A: A journal entry is a record of an individual's thoughts, experiences, and observations that are…

Q: Cantrell co. is required by law to collect and remit sale taxes to the state. if Cantrell has 3,500…

A: Sales can be cash or credit

Q: Blossom's Salon has total receipts for the month of $Unresolved including sales taxes. If the sales…

A: Sales for the month = Total sales / ( 1 + Sales tax rate ) * 100

Q: Waterway Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may…

A: Sales tax is a form of taxation imposed on the sale of goods and services. The tax is imposed by the…

Q: Bargain Surplus made cash sales during the month of October of $475,000. The sales are subject to a…

A: Journal - The primary books of accounts in which transactions are first recorded in chronological…

Q: In January, gross earnings in Coronado Company were $36,000. The 7.65% FICA tax rate consists of the…

A: Net pay: It can be defined as the amount that is being received by the employees for taking home. It…

Q: In January, gross earnings in Swifty Company totaled $96,000. All earnings are subject to 7.65% FICA…

A: FICA Taxes payable = Gross earnings x FICA tax rate = 96,000 x 7.65% = $7,344

Q: Manuel Company had cash sales of $86,800 (including taxes) for the month of June. Sales are subject…

A: Solution: Amount of sales without tax = $86,800 * 100 / 108.50% = $80,000 Amount of sales tax =…

Q: In January, gross earnings in Bonita Company were $106,000. The 7.65% FICA tax rate consists of the…

A: Formula: Net Pay = Gross pay - all deductions. Deductions are carried out from gross pay derives the…

Q: The following selected transactions apply to Topeca Supply for November and December Year 1.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: The following selected transactions apply to topeca supply for november and december year 1.…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: In January, gross earnings in Oriole Company totaled $94,000. All earnings are subject to 7.65% FICA…

A: FICA Taxes payable = Gross wages × FICA Tax rate

Q: Posner Co. is a retail store operating in a state with a 7% retail sales tax. Posner made credit…

A: Sales Tax:- It is a tax which sellers pay to the government at the rate prescribed in law for the…

Q: Pharoah Pet Supply Company billed its customers a total of $777,000 for the month of November. The…

A: a) Compute the amount of revenue:Total billed amount$777,000State sales tax (included)5%Sales tax…

Q: Excise and Sales Tax Calculations Fulton Corporation initially records its sales at amounts that…

A: a. Sales Tax Liability = ($600,000 x 30% x 6%) + ($600,000 x 50% x 6%) = $10,800 + $18,000 = $28,800…

Q: What is the amount of the current liability related to this transaction?

A: Invoice raised for the sales made by the company = 4,000 batteries * $150 + 6% sales tax =…

Q: Nov. 30: Journalized the monthly payroll for November, based on the following data. Description…

A: answers Description Debit Credit Sales Salaries Expense $135,000 Office Salaries…

Q: During the month of June, Concord Boutique recorded cash sales of $334,910 and credit sales of…

A: Credit sales are deals in which products or services are vended to guests on credit, with the…

Q: Carlton Company does not ring up sales taxes separately on the cash register. Total receipts for…

A: Here in this question, we are required to calculate how much sales tax should be remitted. When…

Q: Listed below are selected transactions of Ben’s HomeGoods Store for the current year ending December…

A: The amount of revenue which is received in cash for deferred period in which services will be…

Q: Required Record the following in general journal form on May 31: a. Accrual of the monthly payroll.…

A: The salaries due to the employee is debited with the gross amount to salaries and wages expense by…

Q: A business sells $100,000 of products to a customer on account and collects 6% sales tax. Cost of…

A: a. Date Account Titles and Explanation Debit Credit Accounts receivable $106,000…

Q: The following selected transactions apply to Topeca Supply for November and December, Year 1.…

A: Sales Tax is a ledger that is used to record sales tax collected by the organization at the time of…

Q: 6. During 2019, Reed Corporation sold merchandise for a total of $900,000. The cost of merchandise…

A: A sales discount represents a reduction, not in the selling price of the product or service, but in…

Q: Prepare all the journal entries

A: Journal entries serve as the foundation of financial statements. They help you wit ledger posing and…

Q: Sheridan Company has total proceeds (before segregation of sales taxes) from sales of $9180. If the…

A: Total sale proceeds including sales tax = $ 9,180 Sales tax percentage = 8% Actual sales revenue…

Q: During December, Far West Services makes a $3,600 credit sale. The state sales tax rate is 6% and…

A: Total Sales tax payable = Sales revenue x sales tax rate = 3600 x (6+2.5)% = $306

Q: The following selected transactions apply to Topeca Supply for November and December, Year 1.…

A: Sale tax is the tax levied on sale of goods. Sale tax paid on purchases can be booked as receivable…

Q: NYFG, Inc.I has sales including sales taxes for the month of $742,000. If the sales tax rate is 6%,…

A: Sales tax is charged on the sales revenue. It is a consumption-based tax imposed by the government.…

Question

(Jiffy Copies includes the amount of sales taxes collected directly in the price charged for
merchandise, and the total amount is credited to Sales. During January, Sales was credited
for $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be)
а.
Sales
18,000
Sales Taxes Payable
Sales Tax Expense
Sales Taxes Payable
18,000
b.
18,000
18,000
с.
Sales
19,080
Sales Taxes Payable
Sales Tax Expense
Sales Taxes Payable
19,080
d.
19,080
19,080

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Sales Tax, Restaurant Tax and Lodging Taxes

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Last month The Sweet Tooth Candy Shops had total sales, including sales tax, of $51,889. The stores are located in a state that has a sales tax of 6-%. (Round your answers to the nearest cent.) (a) As the accountant for The Sweet Tooth, calculate the amount of sales revenue (in $) for the shops last month. $4 (b) As the accountant for The Sweet Tooth, calculate the amount of sales taxes (in $) that must be sent to the state Department of Revenue. $4
Calculate the following: Retail selling price Sales tax (6%) Excise tax (10%) Total price including taxes $1,200
Rincoe Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $390,527. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? Round your answer to 2 decimal places.
During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. Record sales and sales tax payable.
Windsor's Boutique has total receipts for the month of $27510 including sales taxes. If the sales tax rate is 5%, what are Windsor's sales for the month? $26200 $26135 $27510 It cannot be determined.
In January, gross earnings in Sunland Company totaled $100,000. All earnings are subject to 7.65% FICA taxes (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), 5.4% state unemployment taxes, and 0.6% federal unemployment taxes.Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31
During month of May, UMPI, Inc. had cash sales of $243,624 and credit sales of $153,687, both of which include Maine sales tax of 5.5% that must be remitted to the state by June 15th. Note that UMPI did not segregate the sales tax from the sales when made during the month. They just record the full amount as sales revenue. Prepare the adjusting journal entry to fairly present the May 31 financial statements.
Required Information [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $82,500 plus sales tax of 7 percent. b. What was the total amount of sales tax paid in Year 1? Sales tax paid
GAS" Company does not segregate sales and sales taxes at the time of sale. The sales register total for the month of March was $25000. Assume that all sales are subject to a 13% sales tax. Required: Based on the above-given information, answer the following questions: • What amount must be presented as a sales tax expense on the Income statement for the month of March? • What is the amount that must be presented as sales revenue on the income statement for the month of March? If the "GAS" Company did not pay the income tax payable as of 31/3, then the company must present sales tax payable with a value of:
Coronado Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may keep 2% of the sales tax collected. Coronado Co. records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $ 744720.The amount of sales taxes (to the nearest dollar) for May is $ 48720. $ 67263. $ 61656. $ 52131.
During the month of June, Novak Boutique recorded cash sales of $259, 350 and credit sales of $126, 420, both of which include the 5% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit June 30 enter an account title for the adjusting entry on June 30 Sales Revenue Correct answer enter a debit amount 250653 Incorrect answer enter a credit amount Incorrect answer enter an account title for the adjusting entry on June 30 Sales Taxes Payable Correct answer enter a debit amount Incorrect answer enter a credit amount 250653 Incorrect answer
In January, gross earnings in Swifty Company were $42,000. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages. Federal income tax withheld was $8,800, and state income tax withheld was $1,120. Calculate net pay for January. Net pay for January $enter Net pay for January in dollars Record the payroll. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 125.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title…