Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 6, Problem 6.18EX
To determine
Sales is an activity of selling the merchandise inventory of a business.
To Describe: The sales tax transactions.
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Sales Tax Transactions
Journalize the entries to record the following selected transactions.
a. Sold $5,100 of merchandise on account, subject to a sales tax of 7%. The cost of merchandise sold was $3,010. For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Paid $47,320 to the state sales tax department for taxes collected.
Sales tax transactions
Journalize the entries to record the following selected transactions:A. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000.B. Paid $61,750 to the state sales tax department for taxes collected
Sales Tax Transactions
Journalize the entries to record the following selected transactions.
a. Sold $486,000 of merchandise on account, subject to a sales tax of 5%. The cost of the goods sold was $286,740.
If an amount box does not require an entry, leave it blank.
b. Paid $42,780 to the state sales tax department for taxes collected.
If an amount box does not require an entry, leave it blank.
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Chapter 6 Solutions
Accounting (Text Only)
Ch. 6 - What distinguishes a merchandising business from a...Ch. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Who bears the freight when the terms of sale are...Ch. 6 - Name four accounts that would normally appear in...Ch. 6 - Audio Outfitter Inc., which uses a perpetual...Ch. 6 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 6 - A Gross profit During the current year,...Ch. 6 - Gross profit During the current year, merchandise...Ch. 6 - Purchases transactions Halibut Company purchased...Ch. 6 - Purchases transactions Hoffman Company purchased...Ch. 6 - Prob. 6.3APECh. 6 - Prob. 6.3BPECh. 6 - Sales transactions Journalize the following...Ch. 6 - Prob. 6.4BPECh. 6 - Prob. 6.5APECh. 6 - Prob. 6.5BPECh. 6 - Inventory shrinkage Castle Furnishings Companys...Ch. 6 - Inventory shrinkage Hahn Flooring Companys...Ch. 6 - Prob. 6.7APECh. 6 - Prob. 6.7BPECh. 6 - Determining gross profit During the current year,...Ch. 6 - Prob. 6.2EXCh. 6 - Chart of accounts Monet Paints Co. is a newly...Ch. 6 - Purchase-related transactions The Stationery...Ch. 6 - Purchase-related transactions A retailer is...Ch. 6 - Prob. 6.5EXCh. 6 - Purchase-related transactions Warwicks Co.. a...Ch. 6 - Purchase-related transactions Journalize entries...Ch. 6 - Sales-related transactions, including the use of...Ch. 6 - Prob. 6.9EXCh. 6 - Sales-related transactions After the amount due on...Ch. 6 - Prob. 6.11EXCh. 6 - Prob. 6.12EXCh. 6 - Determining amounts to be paid on invoices...Ch. 6 - Sales-related transactions Showcase Co., a...Ch. 6 - Purchase-related transactions Based on the data...Ch. 6 - Prob. 6.17EXCh. 6 - Prob. 6.18EXCh. 6 - Normal balances of merchandise accounts What is...Ch. 6 - Prob. 6.20EXCh. 6 - Income statement for merchandiser The following...Ch. 6 - Determining amounts for items omitted from income...Ch. 6 - Prob. 6.23EXCh. 6 - Prob. 6.24EXCh. 6 - Prob. 6.25EXCh. 6 - Prob. 6.26EXCh. 6 - Prob. 6.27EXCh. 6 - Closing entries; net income Based on the data...Ch. 6 - Closing entries On July 31, 2016, the balances of...Ch. 6 - Ratio of sales to assets The Home Depot reported...Ch. 6 - Prob. 6.31EXCh. 6 - Rules of debit and credit for periodic inventory...Ch. 6 - Journal entries using the periodic inventory...Ch. 6 - Prob. 6.34EXCh. 6 - Prob. 6.35EXCh. 6 - Appendix Cost of merchandise sold Based on the...Ch. 6 - Prob. 6.37EXCh. 6 - Appendix Cost of merchandise sold Identify the...Ch. 6 - Prob. 6.39EXCh. 6 - Purchase-related transactions using perpetual...Ch. 6 - Sales-related transactions using perpetual...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Multiple-step income statement and report form of...Ch. 6 - Prob. 6.6APRCh. 6 - Purchase-related transactions using periodic...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Prob. 6.9APRCh. 6 - Appendix Periodic inventory accounts,...Ch. 6 - Purchase-related transactions using perpetual...Ch. 6 - Sales-related transactions using perpetual...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Prob. 6.4BPRCh. 6 - Multiple-step income statement and report form of...Ch. 6 - Prob. 6.6BPRCh. 6 - Purchase-related transactions using periodic...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Prob. 6.9BPRCh. 6 - Appendix Periodic inventory accounts,...Ch. 6 - Palisade Creek Co. is a merchandising business...Ch. 6 - Prob. 6.1CPCh. 6 - Purchases discounts and accounts payable Rustic...Ch. 6 - Prob. 6.3CP
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Similar questions
- Please do not give image formatarrow_forwardA sale of merchandise on account for $36,000 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount recorded as sales? (c) What is the amount debited to Accounts Receivable? (d) What is the title of the account to which the $2,880 ($36,000 × 8%) is credited?arrow_forwardMerchandise is sold for cash. The selling price of the merchandise is $3,800 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to a.Cash for $3,800 b.Sales for $3,496 c.Sales for $4,104 d.Sales Tax Payable for $304arrow_forward
- Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject to a 6% state sales tax. The journal entry to record the sale would include a credit to a.Cash for $5,100 b.Cash for $5,406 c.Sales Tax Payable for $306 d.Sales for $5,406arrow_forwardJournalize the entries to record the following selected transactions: i. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the merchandise sold 0. was $510. ii. Paid $436 to the state sales tax department for taxes collected. Date Description Post. Debit Credit Ref. -C 121 Review Bununoarrow_forwardOn July 5, Feather Company recorded sales of merchandise inventory on account, $20,000. The sales were subject to sales tax of 9%. On August 15, Feather Company paid $1,200 of sales tax to the state. Requirements 1. Joumalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation Jul. 5 Accounts Receivable Sales Revenue Sales Tax Payable To record sales revenue on account and the related sales tax. Requirement 2. Journalize the transaction to record the payment of saltax to the state. Date Aug. 15 Accounts and Explanation Debit Credit 21,800 20,000 1,800 Debit Creditarrow_forward
- S11-2 Recording sales tax On July 5, Williams Company recorded sales of merchandise inventory on account, $55,000. The sales were subject to sales tax of 4%. On August 15, Williams Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15.arrow_forwardDomesticarrow_forwardSales Tax A sale of merchandise on account for $17,400 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount credited to sales?$ (c) What is the amount debited to Accounts Receivable? If required, round your answers to the nearest cent.$ (d) What is the account to which the $1,218.00 is credited?arrow_forward
- am.11.pmarrow_forwardDuring the month of September, the following transactions occurred. The applicable sales tax rate is 6%. Sept. 2 Sold merchandise on account to Sam Larson, $1,400, plus sales tax. 7 Sold merchandise on account to David Mitchell, $1,900, plus sales tax. 12 Issued credit memorandum to Sam Larson for $689, including sales tax of $39. 22 Sold merchandise on account to Matt Feustal, $500, plus sales tax. 28 Sold merchandise on account to Ana Cardona, $850, plus sales tax. Enter the transactions in the general journal. If an amount box does not require an entry, leave it blank.arrow_forwardDuring the month of September, the following transactions occurred. The applicable sales tax rate is 6%. Sept. 2 Sold merchandise on account to Sam Larson, $1,400, plus sales tax. 7 Sold merchandise on account to David Mitchell, $1,900, plus sales tax. 12 Issued credit memorandum to Sam Larson for $689, including sales tax of $39. 22 Sold merchandise on account to Matt Feustal, $500, plus sales tax. 28 Sold merchandise on account to Ana Cardona, $850, plus sales tax. Enter the transactions in the general journal. If an amount box does not require an entry, leave it blank. Page: 1arrow_forward
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