Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 13, Problem 13.7BE
Sales Taxes Payable. Kloth Fabric Store operates in Philadelphia. Pennsylvania where sales taxes are 7% of sales. Kloth collected $27,860 on sales made this month, including the sales price and sales taxes The company uses a periodic inventory system. Prepare the
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On 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
Use the following transaction to answer the all of the questions. A
company purchases inventory on credit for $80.000. Inventory costing
$30,000 is sold on credit for $40,000. The applicable HST rate is 13% on
sales and purchases. HST are remitted at the end of the month. What
does the journal entry look like for the purchase of inventory using the
periodic inventory system?
Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest
Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2
debits
Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest
Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the
2 debits
Required:
Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. The
company uses the perpetual inventory system.
DATE
TRANSACTIONS
20x1
April 2 Sold merchandise for cash, $2, 500 plus sales tax. The cost of merchandise sold was $1,500.
3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the
customer. The cost of returned merchandise was $150.
4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30. The cost of the
merchandise sold was $630.
6 Accepted return of merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was
made on Sales Slip 908 of April 4. The cost of returned merchandise was $90.
30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.
Chapter 13 Solutions
Intermediate Accounting (2nd Edition)
Ch. 13 - Prob. 13.1QCh. 13 - Prob. 13.2QCh. 13 - Prob. 13.3QCh. 13 - Do sellers recognize sales taxes as expenses on...Ch. 13 - Prob. 13.5QCh. 13 - Prob. 13.6QCh. 13 - Prob. 13.7QCh. 13 - What is a gam contingency? Is It accrued and...Ch. 13 - Do firms always accrue and record loss...Ch. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Prob. 13.13QCh. 13 - Prob. 13.14QCh. 13 - Prob. 13.15QCh. 13 - Prob. 13.16QCh. 13 - Prob. 13.1MCCh. 13 - Prob. 13.2MCCh. 13 - Prob. 13.3MCCh. 13 - Medical Services Inc allows employees at the end...Ch. 13 - Trade Notes Payables. On February 1, Seville...Ch. 13 - Unearned Revenues. On June 1 of the current year,...Ch. 13 - Unearned Revenues. GoSnow Inc. provides snow...Ch. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Sales Taxes Payable. Kloth Fabric Store operates...Ch. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - Asset Retirement Obligation at Acquisition. On...Ch. 13 - Prob. 13.12BECh. 13 - Asset Retirement Obligation, Disposal. Buckner...Ch. 13 - Prob. 13.14BECh. 13 - Prob. 13.15BECh. 13 - Prob. 13.16BECh. 13 - Prob. 13.17BECh. 13 - Warranty Liability, Assurance-Type Warranty,...Ch. 13 - Prob. 13.19BECh. 13 - Prob. 13.20BECh. 13 - Trade Notes Payable. On November 1, Barcelona...Ch. 13 - Unearned Revenues. On May 1 of the current year,...Ch. 13 - Gift Cards. Diamond Depot sold 57,000 of gift...Ch. 13 - Sales Taxes Payable. Eaton Technology operates...Ch. 13 - Prob. 13.5ECh. 13 - Asset Retirement Obligation. On January 1,...Ch. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Accounting for Premiums. Supergreen Grocers, Inc....Ch. 13 - Prob. 13.13ECh. 13 - Payroll Taxes Payable, Pay Exceeds. Wage Base....Ch. 13 - Current Operating Liabilities. James Stores, Inc....Ch. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Payroll Taxes Payable. Jackson Corporation employs...Ch. 13 - Prob. 1JCCh. 13 - Prob. 2JCCh. 13 - Prob. 3JCCh. 13 - Financial Statement Analysis Case You are...Ch. 13 - Surfing the Standards Case 1: Environmental...Ch. 13 - Prob. 2SSCCh. 13 - Prob. 1BCC
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