Required information [The following information applies to the questions displayed below.] 1. On July 15, Piper Company sold $26,000 of merchandise (costing $13,000) 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 $780 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.
Required information [The following information applies to the questions displayed below.] 1. On July 15, Piper Company sold $26,000 of merchandise (costing $13,000) 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 $780 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
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Required information
[The following information applies to the questions displayed below.]
1. On July 15, Piper Company sold $26,000 of merchandise (costing $13,000) 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 $780 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.
Answer is complete but not entirely correct.
Date
Assets
July 15
Cash
July 15
Merchandise inventory
(+) increase
(-) decrease
August 1
Cash
(-) decrease
26,000 =
13,000 |=
1,040
Sales taxes payable
Liabilities
(+) increase
Equity
1,040
Sales
Cost of goods sold
(+) increase
(-) decrease
24,960x
13,000
Sales taxes payable
(-) decrease
1,040
Unearned ticket
November 3
Cash
(+) increase
780
(+) increase
780
revenue
November
20
Unearned ticket
=
(-) decrease
130
Sales
✓ (+) increase
130
revenue](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e817a9a-cdcc-4bae-874f-668a64f7b913%2Fa093b54e-69a1-4b61-acc2-f2aa3404d4ae%2Fixe5dli_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
1. On July 15, Piper Company sold $26,000 of merchandise (costing $13,000) 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 $780 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.
Answer is complete but not entirely correct.
Date
Assets
July 15
Cash
July 15
Merchandise inventory
(+) increase
(-) decrease
August 1
Cash
(-) decrease
26,000 =
13,000 |=
1,040
Sales taxes payable
Liabilities
(+) increase
Equity
1,040
Sales
Cost of goods sold
(+) increase
(-) decrease
24,960x
13,000
Sales taxes payable
(-) decrease
1,040
Unearned ticket
November 3
Cash
(+) increase
780
(+) increase
780
revenue
November
20
Unearned ticket
=
(-) decrease
130
Sales
✓ (+) increase
130
revenue
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