Required Information [The following information applies to the questions displayed below] 1. On July 15, Piper Company sold $27,000 of merchandise (costing $13,500) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. 2. On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $810 cash. On November 20, the Bucks played the first game of the six-game pack (this represented one-sixth of the advance ticket sales). Analyze each separate transaction by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each transaction. Note: Enter all amounts as positive values. Equity 1,080 Sales (+) increase 27,000 Cost of goods sold (-) decrease 13,500 Answer is not complete. Date July 15 July 15 Assets Liabilities Cash (+) increase Merchandise inventory (-) decrease 28,080 13,500 Sales taxes payable (+) increase August 1 Cash (-) decrease 1.080 Sales taxes payable (-) decrease 1,080 November 3 Cash (+) increase Unearned ticket 810 (+) increase 810 + revenue November Uneamed ticket 20 (-) decrease 135 revenue

Required Information [The following information applies to the questions displayed below] 1. On July 15, Piper Company sold $27,000 of merchandise (costing $13,500) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. 2. On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $810 cash. On November 20, the Bucks played the first game of the six-game pack (this represented one-sixth of the advance ticket sales). Analyze each separate transaction by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each transaction. Note: Enter all amounts as positive values. Equity 1,080 Sales (+) increase 27,000 Cost of goods sold (-) decrease 13,500 Answer is not complete. Date July 15 July 15 Assets Liabilities Cash (+) increase Merchandise inventory (-) decrease 28,080 13,500 Sales taxes payable (+) increase August 1 Cash (-) decrease 1.080 Sales taxes payable (-) decrease 1,080 November 3 Cash (+) increase Unearned ticket 810 (+) increase 810 + revenue November Uneamed ticket 20 (-) decrease 135 revenue

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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