Sales Tax Grey's Furniture sold 50 couches to Shepherd Inc. for $980 each plus an additional state sales tax of 8%. Shepherd Inc. purchased on credit. Required: Provide the journal entry to record the sale. If an amount box does not require an entry, leave it blank. Accounts Receivable Sales Taxes Payable (State) Sales Revenue (Record sale) Feedback

Sales Tax Grey's Furniture sold 50 couches to Shepherd Inc. for $980 each plus an additional state sales tax of 8%. Shepherd Inc. purchased on credit. Required: Provide the journal entry to record the sale. If an amount box does not require an entry, leave it blank. Accounts Receivable Sales Taxes Payable (State) Sales Revenue (Record sale) Feedback

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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Cheyenne Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $10,812. All sales are subject to a 6% sales tax. (a1) Compute sales taxes payable. Sales taxes payable $ eTextbook and Media List of Accounts Save for Later Attempts: unlimited Submit Answer (a2)
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Brian Burns uses perpetual inventory system and LIFO All credit sales discounts are recorded using the net method – customers receive a 3 percent discount if they pay within 30 days. Purchase discounts are recorded using the net method All depreciation is straight line. Additional Information for Journal Entries Brian Burns records accruals for utilities expense as an adjusting journal entry at the end of each year. They pay utilities once a year on January 31st for the prior year. NOTE: There is no payment for utilities on January 31st of 2022 because January 1 of 2022 is the first day of operations. January 1 Sold 10,000 shares of common stock for $95 per share. Borrowed $2,000,000 at 8 percent with interest payable semi-annually (on July 1 and January 1). Purchased 1,000 units of inventory at $150 a piece on credit from Biggie Smalls Inc. Terms are 2/10; n/60 Paid $480,000 for 2 years of rent in advance…