P13-5 Sales Taxes The Mauldin Company makes sales on which a 5% sales tax is assessed. The following summary trans- actions were made during 2010: Problems 641 1. Sales for cash of $1,665,400, excluding sales taxes 2. Sales on credit of $2,820,500, excluding sales taxes 3. Sales taxes of $168,220 were paid to the state government during 2010 Required 1. Prepare journal entries to record the preceding transactions. 2. Show how the unpaid sales taxes would be reported on the December 31, 2010 balance sheet of Mauldin.

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TB MC Qu. 11-161 (Algo) A company purchases its inventory from... A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $18 million and its accounts payable to suppliers decreased by $2 million. If cost of goods sold was $460 million, its cash outflows to inventory suppliers totaled: Multiple Choice $480 million. $440 million. $476 million. $444 million.

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…

Nu Company reported the following pretax data for its first year of operations. Net sales 2,960 Cost of goods available for sale 2, 480 Operating expenses 830 Effective tax rate 20% Ending inventories: If LIFO is elected 940 If FIFO is elected 1, 150 What is Nu's net income if it elects LIFO? Multiple Choice $800 $ 640 $472 $590

Use the following to answer questions 6 – 7 MC, Inc., reported the following amounts at the end of the year: Total sales $888,000 Accounts receivable Sales allowances 60,000 3,500 Allowance for Uncollectible accounts 1,400 Sales discounts 18,000 9,000 Sales returns Determine total contra revenues for $ the company 6. 7. $ Determine net sales for the company

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