Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 8 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $81,500 plus sales tax of 8 percent. Exercise 9-4A (Algo) Part b b. What was the total amount of sales tax paid in Year 1? X Answer is complete but not entirely correct. Sales tax paid $ 7,425

Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 8 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $81,500 plus sales tax of 8 percent. Exercise 9-4A (Algo) Part b b. What was the total amount of sales tax paid in Year 1? X Answer is complete but not entirely correct. Sales tax paid $ 7,425

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

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Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
Required information [The following Information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $82,500 plus sales tax of 7 percent. e. On which financial statement will the sales tax liability appear? The liability is shown on the
Required Information [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $82,500 plus sales tax of 7 percent. b. What was the total amount of sales tax paid in Year 1? Sales tax paid
Required information (The following information applies to the questions displayed below) The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month 1. Cash sales for November Year 1 were $66,000 plus sales tax of 7 percent. 2 Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $79,500 plus sales tax of 7 percent. d. What is the amount of the sales tax liability as of December 31, Year 1? Sales tar labity
The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500, plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $83,500, plus sales tax of 7 percent.
The following selected transactions apply to topeca supply for november and december year 1. november was the first month operations. sales tax is collected at the time of the sale but is not paid to the state sales tax agency until the following month. 1. cash sales for november year 1 were 64,500 plus sales tax of 8 percent. 2. topeca supply paid the november sales tax to the state agency on december 10, year 1. 3. cash sales for december year 1 were 80,500 plus sales tax of 8 percent. b. what was the total amount of sales tax paid in year 1? c. what was the total amount of sales tax collected in year 1? d. what is the amount of sales tax liability as of december 31, year 1? e. on which of the financial statement will the sales tax liability appear?
The following selected transactions apply to topeca supply for november and december year 1. november was the first month of operations. sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. cash sales for november year 1 were 64,500 plus sales tax of 8 percent. 2. Topeca supply paid the november sales tax to the state agency on december 10, year 1. 3. cash sales for december year 1 were 80,500 plus sales tax of 8 percent. a. show the effect of the above transactions on a statements model.
The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November, Year 1, were $165,000 plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December, Year 1, were $180,000 plus sales tax of 7 percent. Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. What was the total amount of sales tax paid in Year 1? c. What was the total amount of sales tax collected in Year 1?…
8.1 During month of May, UMPI, Inc. had cash sales of $243,624 and credit sales of $153,687, both of which include Maine sales tax of 5.5% that must be remitted to the state by June 15th. Note that UMPI did not segregate the sales tax from the sales when made during the month. They just record the full amount as sales revenue. Prepare the adjusting journal entry to fairly present the May 31 financial statements. 8.2 The payroll of UMPI, Inc. for May 31 is as follows: The total payroll was $150,000. None of the individual wages was greater than $132,900 (social security maximum threshold for 2019). Income taxes withheld from employees totaled $37,500 and union dues withheld was $4,000. Assume FICA tax is 7.65% on employee’s wages (6.2% Social Security & 1.45% Medicare tax). Calculate Unemployment tax - .6% FUTA and 5.4% SUTA taxes. No employees have reached the $7,000 maximum wage threshold. A. Prepare the necessary journal entries for the wages paid on May 31 Prepare the…
The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November, Year 1 were $64,500 plus sales tax of 9 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December, Year 1 were $80,000 plus sales tax of 9 percent. On which financial statement will the sales tax liability appear?
Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 8 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $81,500 plus sales tax of 8 percent. Exercise 9-4A (Algo) Part e e. On which financial statement will the sales tax liability appear? The liability is shown on the
The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November, Year 1 were $64,500 plus sales tax of 9 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December, Year 1 were $80,000 plus sales tax of 9 percent. Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. What was the total amount of sales tax paid in Year 1?