PA2. 12.1 Stork Enterprises delivers care packages for special occasions. They charge $45 for a smallpackage, and $80 for a large package. The sales tax rate is 6%. During the month of May, Storkdelivers 38 small packages and 22 large packages.A. What is the total tax charged to the customer per small package? What is the overall charge per smallpackage?B. What is the total tax charged to the customer per large package? What is the overall charge per largepackage?C. How much sales tax liability does Stork Enterprises have for the month of May?D. What accounts are used to recognize this tax situation for the month of May?E. When Stork remits payment to the sales tax governing body, what happens to the sales tax liability A....В.C.D....Е....

A. Total tax charged to the customer per small package = 6% x $45 = $2.70Overall charge per small…

Answered: the customer per small p the customer…

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the customer per small p the customer per large p= s Stork Enterprises have f gnize this tax situation fo

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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Question

PA2. 12.1 Stork Enterprises delivers care packages for special occasions. They charge $45 for a small
package, and $80 for a large package. The sales tax rate is 6%. During the month of May, Stork
delivers 38 small packages and 22 large packages.
A. What is the total tax charged to the customer per small package? What is the overall charge per small
package?
B. What is the total tax charged to the customer per large package? What is the overall charge per large
package?
C. How much sales tax liability does Stork Enterprises have for the month of May?
D. What accounts are used to recognize this tax situation for the month of May?
E. When Stork remits payment to the sales tax governing body, what happens to the sales tax liability

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