Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 13, Problem 13.7BE
Sales Taxes Payable. Kloth Fabric Store operates in Philadelphia. Pennsylvania where sales taxes are 7% of sales. Kloth collected $27,860 on sales made this month, including the sales price and sales taxes The company uses a periodic inventory system. Prepare the
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Students have asked these similar questions
Use the following transaction to answer the all of the questions. A
company purchases inventory on credit for $80.000. Inventory costing
$30,000 is sold on credit for $40,000. The applicable HST rate is 13% on
sales and purchases. HST are remitted at the end of the month. What
does the journal entry look like for the purchase of inventory using the
periodic inventory system?
Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest
Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2
debits
Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest
Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the
2 debits
The Comet Company, Inc. uses the perpetual inventory system. Their credit terms
are 2/10, n/30. They sell one product at a price of $500 and it costs Comet $300.
Requirement: Prepare journal entries for the Comet Company, Inc. for the
transactions listed below.
On May 1, Comet sold 10 items of merchandise inventory to J. Miller on account.
On May 2, Comet collected $23,520 cash from customer sales on credit in the
prior month, all within the discount period.
On May 3, Comet sold 5 items of merchandise to S. Wendell on account.
On May 9, Comet receives payment from S. Wendell on the May 3 sale.
On May 12, Comet receives payment from J. Miller on the May 1 sale.
On May 14, S. Wendell returns one of the items purchased on May 3 for a cash
refund because it was defective.
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…
Chapter 13 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Ch. 13 - Prob. 13.1QCh. 13 - Prob. 13.2QCh. 13 - Prob. 13.3QCh. 13 - Do sellers recognize sales taxes as expenses on...Ch. 13 - Prob. 13.5QCh. 13 - Prob. 13.6QCh. 13 - Prob. 13.7QCh. 13 - What is a gam contingency? Is It accrued and...Ch. 13 - Do firms always accrue and record loss...Ch. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Prob. 13.13QCh. 13 - Prob. 13.14QCh. 13 - Prob. 13.15QCh. 13 - Prob. 13.16QCh. 13 - Prob. 13.1MCCh. 13 - Prob. 13.2MCCh. 13 - Prob. 13.3MCCh. 13 - Medical Services Inc allows employees at the end...Ch. 13 - Trade Notes Payables. On February 1, Seville...Ch. 13 - Unearned Revenues. On June 1 of the current year,...Ch. 13 - Unearned Revenues. GoSnow Inc. provides snow...Ch. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Sales Taxes Payable. Kloth Fabric Store operates...Ch. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - Asset Retirement Obligation at Acquisition. On...Ch. 13 - Prob. 13.12BECh. 13 - Asset Retirement Obligation, Disposal. Buckner...Ch. 13 - Prob. 13.14BECh. 13 - Prob. 13.15BECh. 13 - Prob. 13.16BECh. 13 - Prob. 13.17BECh. 13 - Warranty Liability, Assurance-Type Warranty,...Ch. 13 - Prob. 13.19BECh. 13 - Prob. 13.20BECh. 13 - Trade Notes Payable. On November 1, Barcelona...Ch. 13 - Unearned Revenues. On May 1 of the current year,...Ch. 13 - Gift Cards. Diamond Depot sold 57,000 of gift...Ch. 13 - Sales Taxes Payable. Eaton Technology operates...Ch. 13 - Prob. 13.5ECh. 13 - Asset Retirement Obligation. On January 1,...Ch. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Prob. 13.12ECh. 13 - Prob. 13.13ECh. 13 - Prob. 13.14ECh. 13 - Current Operating Liabilities. James Stores, Inc....Ch. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Payroll Taxes Payable. Jackson Corporation employs...Ch. 13 - Prob. 1JCCh. 13 - Prob. 2JCCh. 13 - Prob. 3JCCh. 13 - Prob. 1FSACCh. 13 - Surfing the Standards Case 1: Environmental...Ch. 13 - Prob. 2SSCCh. 13 - Prob. 1BCC
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