The balances of certain accounts of Vanessa Corporation on April 30, 20X1, were as follows: Sales Sales returns and allowances $ 216,000 2,600 The firm's net sales are subject to an 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable on April 30, 20X1.

The balances of certain accounts of Vanessa Corporation on April 30, 20X1, were as follows: Sales Sales returns and allowances $ 216,000 2,600 The firm's net sales are subject to an 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable on April 30, 20X1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

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.

Question

The balances of certain accounts of Vanessa Corporation on April 30, 20X1, were as follows:
Sales
Sales returns and allowances
$ 216,000
2,600
The firm's net sales are subject to an 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable
on April 30, 20X1.
View transaction list
View journal entry worksheet
es
No
Date
General Journal
1
April 30, 20X1
Sales
Sales tax payable
Debit
Credit

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