### Vail Book Mart Financial Transactions OverviewVail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. The following details the transactions for Year 1, during which this sales tax is applicable to all sales.#### Transactions:1. **Book Sales**: Total sales, excluding sales tax, amounted to $274,000 in cash.2. **Miscellaneous Sales**: Cash sales of various items reached $149,000, excluding tax.3. **Cost of Goods Sold (COGS)**: The total cost was $211,000 for the year.4. **Operating Expenses**: Vail Book Mart incurred $130,000 in operating expenses.5. **Sales Tax Payment**: Collected sales tax was paid to the state agency.#### Requirements:a. **Total Sales Tax Collected and Paid**: Calculate the total amount of sales tax Vail Book Mart collected and paid during the year.b. **Journal Entries Preparation**: Prepare the journal entries for all mentioned transactions.c. **Net Income Calculation**: Determine Vail Book Mart’s net income for the year.#### Instructions:To address these requirements, complete the answers in the designated sections below:- **Required A**: Provide the total amount of sales tax collected and paid for the year.- **Required B**: Detail the journal entries for the transactions.- **Required C**: Calculate the net income for the year.

The net income or loss is calculated as difference between sales and total expenses.

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 7 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $274,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $149,000, not including tax. 3. Cost of goods sold was $211,000 for the year. 4. Paid $130,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart's net income for the year?

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 7 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $274,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $149,000, not including tax. 3. Cost of goods sold was $211,000 for the year. 4. Paid $130,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart's net income for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A store had receipts of $6045.50. If the sales tax rate is 7%, how much merchandise did the store sell? The value of the merchandise sold (not including sales tax) is $ (blank)
Rincoe Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $390,527. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? Round your answer to 2 decimal places.
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 6 percent is collected on all sales. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Cost of gods sold was $211,000 for the year. Paid $130,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Required What is the total amount of sales tax Vail Book Mart collected and paid for the year? Prepare the journal entries for the preceding transactions. What is Vail Book Mart's net income for the year?
Please do not give image format
ABC Jewelry sells a $5,000 bracelet and collects 6% sales tax. The company will record: Select one: a. Sales Revenue of $5,000. b. Sales Revenue of $5,000 and Sales Tax Revenue of $300. c. Sales Revenue of $5,300. d. Sales Revenue of $5,000 and Sales Tax Expense of $300.
3. Loudoun Trucking purchases 4,750 truck tires. The federal excise tax is $0.13 per tire. Find the amount (in $) of the excise tax for this transaction. $
Vishno
Raney Co is a retail store operating in a state with a 6% retail sales tax. The retailer may keep 2% of the sales tax collected. Raney Co records the sales tax collected in the Sales account. The amount recorded in the Sales account during May was $148,400. What was the amount of sales tax (to the nearest dollar) for May? O $8.726 O $8,400 O $8.904 O $9.438
Record the following selected transactions: a. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the goods sold was $510. b. Paid $436 to the state sales tax department for taxes collected. Required: Journalize the entries. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522…
Cobb Baseball Bats sold 45 bats for $50 each, plus an additional state sales tax of 6%. The customer paid cash.Required:Prepare the journal entry to record the sale.
Darmstadt Company sold merchandise for which it received total cash payments of $2,632,200. A 7% sales tax was included in the total cash payments. The proper amount to record as sales would be: A) $2,460,000 B) $2,568,168 C) $2,447,946 D) $2,736,000
Required information (The following information applies to the questions displayed below) The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month 1. Cash sales for November Year 1 were $66,000 plus sales tax of 7 percent. 2 Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $79,500 plus sales tax of 7 percent. d. What is the amount of the sales tax liability as of December 31, Year 1? Sales tar labity