State the accounting entries required if a business made sales on credit of $10,000, on which it must account for sales tax at the rate of 20%.

Q: Cheyenne Corporation made credit sales of $30,600 which are subject to 7% sales tax. The corporation…

A: Journal entries are prepared in a proper order which is as per the principle of double-entry…

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: For questions 24-25, use the following information; Posner Co. is a retail store operating in a…

A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…

Q: Excise and Sales Tax Calculations Clifford Company has just billed a customer for $1,100, an amount…

A: Revenue: It implies to the income that is earned by the business during it's course of trading…

Q: Sneasler Company appropriately withholds 9.75% on all of its sales transactions. During the period,…

A: Journal entry is the primary reporting of the business transactions in the books of accounts. These…

Q: Tamarisk, Inc. Supply does not segregate sales and sales taxes at the time of sale. The register…

A: Calculation of sales tax payable:

Q: Flounder Corporation made credit sales of $30,600 which are subject to 5% sales tax. The corporation…

A: Lets understand the basics.Journal entry is required to make to record event and transaction that…

Q: Vaughn Auto Supply does not segregate sales and sales taxes at the time of sale. The register total…

A: Sales Tax Payable = Total Sales / (100% + Sales Tax %) * Sales Tax % = $42,000 / (105%) * 5% = $…

Q: ng to a summary of the payroll of Scotland Company, $450,000 was sub cial security tax and $500,000…

A: The acronym SUTA stands for State Unemployment Tax which has been deducted for the unemployed…

Q: Grotto Ltd has already sent $19,600 to the ATO in respect to PAYG, and this figure shown as a debit…

A: PAYG stands for "Pay as you Go", it is a installment method of paying income tax to…

Q: Indigo Corporation made credit sales of $19,800 which are subject to 7% sales tax. The corporation…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:…

A: Statement of Cash Flow - Statement of Cash Flow is a financial statement. That includes inflow and…

Q: Required prepare a post-closing trial balance.

A: Post-closing trial balance is the trial balance that is prepared after closure and transfer of all…

Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: A Journal entry is a primary entry that records the financial transaction initially. The…

Q: During December, Far Eas Services makes a credit sale of $1.600 (before sales taxes). The state…

A: A sale is a transaction in which goods or services are exchanged for a predetermined amount of…

Q: Windsor, Inc. Supply does not segregate sales and sales taxes at the time of sale. The register…

A: Sales tax to be deposited to the state authorities is a liability. Increase in liability should be…

Q: Fanta Ltd has paid the following PAYG tax installments for the year ended 30 June:   September…

A: Pay As You Go (PAYG) Instalment is an amount of money placed in reserve to cover the tax liability…

Q: A trader maintains allowances for trade receivables to cover 2% of trade receivables outstanding at…

A: A financial statement that lists the company's earnings and expenses is called an income statement.…

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: Record transaction 1 in the applicable general ledger accounts using the perpetual inventory system.

A: The perpetual inventory system of recording the journal entries when the sales are made is that…

Q: This year AB Company has each of the following items in its income statement.   Part A.   Gross…

A: Deferred taxes are treated as per the Income Tax Rules. Deferred tax is a liability that is a tax…

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: Grover Incorporated uses the allowance method to account for uncollectible accounts expense. Grover…

A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…

Q: Prepare the entry to record Ayayai's cash sales. (If no entry is required, select "No Entry" for the…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: How much is the input tax?              How much is the value added tax payable?

A: VAT is Value Added Tax paid during purchases & collected while making sales the difference to be…

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: A company sells 180,000 (sale price) of goods and collect sales tax of 8%. What current liability…

A: Current liability means the amount which the business has the obligation to pay within short term…

Q: On April 15 LA Fashion purchased $15,000 of inventory on account. The shirts were purchased on the…

A: Solution 2.5: Journal entry to recognize payment on 20 April is as und

Q: Hallmark Cards, Inc. records sales and sales tax separately. On May 1, Jay’s Hallmark Shop in New…

A: Sales - Sales is a revenue earned by the company from sale of article or goods to the customer. The…

Q: Luna Company accepted credit cards in payment for $7,100 of services performed during July Year 1.…

A: A journal entry is a record of a business transaction in double- entry secretary. It's the first…

Q: Pina Colada Corp. Supply does not segregate sales and sales taxes at the time of sale. The register…

A: In the given question, The Pina Colada Corp. does not segregate Sales and sales tax at the time of…

Q: On December 31, the company estimates future sales refunds to be $900. As of that date, the company…

A: A journal entry is the act of recording each individual financial transaction that a company does in…

Q: ompany obtains $37,600 in cash by signing a 7%, 6-month, $37,600 te payable to First Bank on July 1.…

A: Liabilities are what a company owes to outsiders, when the liability is not held for more than one…

Q: During the first year of operation, Year 1, Direct Service Company recognized $304,000 of service…

A: The bad debt expense is related to uncollectible accounts receivable. When a company makes sales on…

Q: 10% sales tax.

A: Calculate Sales tax Payable as follows: Sales tax  Payable=Sales100+ Taxrate×Tax rate…

Q: Question 2.6 LA Fashion records indicate that the balance in their cash account (in the ledger) at…

A: Hi student, Since there are multiple questions, we will answer only the first question. If you want…

Q: Ivanhoe Company had cash sales of $77,328 (including taxes) for the month of June. Sales are subject…

A: Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is…

Q: plish Brothers Supply does not segregate sales and sales taxes at the time of sale. The register…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

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…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.