Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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PA2.
LO 12.1Stork Enterprises delivers care packages for special occasions. They charge $45 for a small package, and $80 for a large package. The sales tax rate is 6%. During the month of May, Stork delivers 38 small packages and 22 large packages.
- What is the total tax charged to the customer per small package? What is the overall charge per small package?
- What is the total tax charged to the customer per large package? What is the overall charge per large package?
- How much sales tax liability does Stork Enterprises have for the month of May?
- What account is used to recognize this tax situation for the month of May?
- When Stork remits payment to the sales tax governing body, what happens to the sales tax liability?
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