Like all retailers, Hollister is required to collect sales tax to be remitted to state and local government authorities. Assume a local store has cash proceeds from sales of $5,325, including $325 in sales tax. What is the sales tax rate? Provide the journal entry to record the proceeds.
Q: Jurisdiction Z levies an excise tax on retail purchases of jewelry and watches. The tax equals 3…
A: Taxes can be defined as a mandatory contribution to a state's or country's revenue levied by…
Q: Venus Corp. sold goods, with a selling price of $18,421, for cash. The state sales tax rate is 8%.…
A:
Q: TireCo is a retail store in a state that imposes a 6 percentsales tax. Would you expect to find…
A: Statement of profit and loss is the income statement of a company showing the net profit calculated…
Q: Which of the following represents the correct journal entry to record a taxable cash sale of $400 if…
A: Introduction:- At the time of record received sales tax from customers, journal entry will be, debit…
Q: Yesterday Estate Jewelers had total sales, including sales tax, of $16,502.50. The store is located…
A: Given, Sales value inclusive of sales tax = $ 16502.50 Sales tax rate = 6 3/4 % = 6.75 %
Q: A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on…
A: Tax is calculated on the income earned and paid to the government that acts as the revenue for the…
Q: In performing accounting services for small businesses, you encounter the following situations…
A: In the 2nd point, $19,080 is inclusive of 6% sales tax. So Sales = $19,080 / 106% = $18,000 Sales…
Q: In performing accounting services for small businesses, you encounter the following situations per…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: ournalize the entries to record the following selected transactions: (a) Sold $ 2,000 of…
A: Definition: Journal: Journal is the method of recording monetary business transactions in…
Q: In performing accounting services for small businesses, you encounter the following situations…
A:
Q: You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 7%,…
A: Let, Sales Revenue = X Sales tax for City = 0.015X. Sales tax for State = 0.07X. Then, X + 0.015X +…
Q: The following are the data extracted from the books of a retailer and registered with the National…
A: VAT is the indirect form of tax which is levied by the government on the goods and services. VAT is…
Q: A supplier imported goods and then sold them to a distributor for a value of 920,000 riyals…
A: VAT is a value added tax. Tax is charged on the value added amount. Given in the question: Supplier…
Q: Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has…
A: Sales tax = $3,500*10% Sales tax = $350
Q: Miyuki Company operstes a retsil store. All items are sold subject to a 12% value sdded tsx which…
A: Value added tax is the price levied on each stage of the production of goods and rendering of…
Q: Merchandise is sold for cash. The selling price of the merchandise is $3,000 and the sale is subject…
A: We have the following information: Merchandise is sold for cash The selling price of the…
Q: Merchandise is sold for cash. The selling price of the merchandise is $1,100 and the sale is subject…
A: When we do sales,we need pay sales tax on sales made at a percentage given.That sales tax is…
Q: Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts…
A: Sales tax payable = Sales x Sales tax rate = $64,400 x 4% = $2,576
Q: During August, Hill Sales Company had these summary transactions: 1. Cash sales of $210,000, subject…
A: Date Account Title Post. Ref. Debit Credit August 31 Cash 222600 Sales 210000…
Q: Journalize the entries to record the following selected transactions:a. Sold $62,800 of merchandise…
A: a.Journal entry to record Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The…
Q: ournalize the entries to record the following selected transactions. Refer to the Chart of Accounts…
A: Sales tax on sale = $64,300*5% Sales tax on sale = $3,215
Q: Cantrell co. is required by law to collect and remit sale taxes to the state. if Cantrell has 3,500…
A: Sales can be cash or credit
Q: Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers…
A: 1. Recording of Journals : Date Account Title Debit Credit 01 February 2019 Accounts Receivable…
Q: A VAT registered trader had the following transactions: Sales of good to private entities, net of…
A: Value Added Tax: VAT is a consumption tax on products and services levied at each level of the…
Q: A sale of merchandise on account for $36,000 is subject to an 8% sales tax. (a) Should the sales tax…
A: a) State whether the sales tax should be recorded at the time of sale or when payment is…
Q: In performing accounting services for small businesses, you encounter the following situations…
A: Calculation of Sales tax for Crane Company: Total amount = Sales revenue + Sales tax $23,850 = Sales…
Q: Posner Co. is a retail store operating in a state with a 7% retail sales tax. Posner made credit…
A: Sales Tax:- It is a tax which sellers pay to the government at the rate prescribed in law for the…
Q: sand Venus Corp. sold goods, with a selling price of $16,221, for cash. The state sales tax rate is…
A: Sale tax is amount of tax payable on the sale made. It is a source of revenue to the government of a…
Q: Tennis Shoe Warehouse operates in a state with a 6.5% sales tax. For convenience, Tennis Shoe…
A: Correct answer is d. net income will be overstated and liabilities will be understated
Q: Bramble Company does not ring up sales taxes separately on the cash register. Total receipts for…
A: Amount inclusive of tax = $ 36400 Sales tax rate = 4%
Q: S operates in a business environment with a 6% state sales tax rate and a 4% county sales tax rate.…
A: Prepare the journal entries to reflect the sales tax that will remit to the state and to the county.
Q: In performing accounting services for small businesses, you encounter the following situations…
A: Assume sales = $100 Sales tax = 100*8% = $8 Total sales including tax = $100 +$8 = $108 For…
Q: Stung, which is registered for the purposes of sales tax, bought furniture on credit terms at a cost…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts…
A: Sales tax payable = Sales x rate of tax
Q: In performing accounting services for small businesses, you encounter the following situations…
A: The amount of sales tax is collected from the buyers and are paid to the government accounts for…
Q: Tennis Shoe Warehouse operates in a state with a 6.5% sales tax. For convenience, TennisShoe…
A:
Q: Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers…
A: A general journal consists of the journal entries passed to record the economic events of the…
Q: Stung, which is registered to account for sales tax, purchased furniture on credit at a cost of…
A: We have the following information: purchased furniture on credit at a cost of $8,000 also…
Q: Sold 64,400 of merchandise on account , subject to a sales tax of 4%. The cost of the goods sold was…
A: Sales tax payable = Sales x Sales tax rate = $64,400 x 4% = $2,576
Q: Record the following selected transactions: a. Sold $900 of merchandise on account, subject to 7%…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 7%,…
A: State sales tax rate = 7% City sales tax rate = 1.50% Revenue = $705,250
Q: Coronado Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may…
A: Sales tax is a form of indirect taxes which needs to be paid on sale of goods and services. Some…
Q: Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Like all retailers, Hollister is required to collect sales tax to be remitted to state and local government authorities. Assume a local store has cash proceeds from sales of $5,325, including $325 in sales tax. What is the sales tax rate? Provide the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Answer each question independently. Read the requirements. Requirement 1. A restaurant made cash sales of $4,000 subject to a 5% sales tax. Record the sales and the related sales tax. (Ignore cost of goods sold.) Also record the payment of the tax to the state. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by preparing a compound journal entry to record the sales and the related sales tax. Date Accounts and Explanations Debit CreditYesterday Estate Jewelers had total sales, including sales tax, of $16,502.50. The store is located in a state that has a sales tax of . the accountant for the 6 3/4% store , calculate : the anount of sales revenue and the amount of sales tax that must be sent to the state department of revenueTireCo is a retail store in a state that imposes a 6 percentsales tax. Would you expect to find sales tax expense andsales tax payable in TireCo’s financial statements? Explain.
- Merchandise 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 $304Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. A. Sold $64,400 of merchandise on account, subject to a sales tax of 4%. The cost of the goods sold was $38,240. B. Paid $38,220 to the state sales tax department for taxes collected.In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Sandhill Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $27,000 and sales taxes $1,350. 2. Carla Vista Co. does not segregate sales and sales taxes. Its register total for April 15 is $19,080, which includes a 6% sales tax. Prepare the entry to record the sales transactions and related taxes for Sandhill Co. Date Account Titles and Explanation Debit Credit Apr. 10 enter an account title to record the sales transactions and related taxes for Sandhill Co. on April 10enter an account title to record the sales transactions and related taxes for Sandhill Co. on April 10
- In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Carla Vista Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $26,500 and sales taxes $1,325. 2. Wildhorse Co. does not segregate sales and sales taxes. Its register total for April 15 is $18,550, which includes a 6% sales tax. (a) Prepare the entry to record the sales transactions and related taxes for Carla Vista Co.. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 10 enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10 enter a debit amountenter a debit amount enter a credit amountenter a…Record the entry for cash sales and it’s sales tax Record the cost of merchandise Record the sending of sales taxes to the government Record the sale of advance ticketsJournalize the entries to record the following selected transactions:a. Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500.b. Paid $39,650 to the state sales tax department for taxes collected.
- When performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. (a) "A" Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are Sales $22,000 and Sales Taxes $1,100. (b) "B" Company does not segregate sales and sales taxes. Its register total for April 15 is $13,780, which includes a 6% sales tax. Instructions Prepare the entries to record the sales transactions and related taxes for (a) "A" Company and (b) "B" Company. (a) (b) "A" Company "B" CompanyMerchandise is sold for cash. The selling price of the merchandise is $3,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include a credit to a.Sales for $3,210 b.Cash for $3,000 c.Cash for $3,210 d.Sales Tax Payable for $210On 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 Credit