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QS 9-2 Accounting for sales taxes LO C2 Dextra Computing sells merchandise for $7,000 cash on...
QS 9-2 Accounting for sales taxes LO C2
Dextra Computing sells merchandise for $7,000 cash on September 30 (cost of merchandise is $4,900). The sales tax law requires Dextra to collect 5% sales tax on every dollar of merchandise sold. Record the entry for the $7,000 sale and its applicable sales tax. Also record the entry that shows the payment of the 5% tax on this sale to the state government on October 15.
Journal entry worksheet
- Record the cash sales and 5% sales tax.
- Record the cost of September 30th sales.
- Record the entry that shows the payment of the 5% tax on this sale to the state government on October 15.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
QS 16-9 Computing financing cash flows LO P3 The following selected information is from Princeton Company’s...
QS 16-9 Computing financing cash flows LO P3
The following selected information is from Princeton Company’s
comparative balance sheets.
At December
31
2017
2016
Common stock,
$10 par value
$
115,000
$
112,000
Paid-in capital
in excess of par
579,000
348,000
Retained
earnings
325,500
299,500
The company’s net income for the year ended December 31, 2017, was
$54,000.
1. Complete the T-accounts to calculate the cash
received from the sale of its common stock during 2017.
Common Stock,...
QS 16-7 Computing cash from asset sales LO P3 The following selected information is from Ellerby...
QS 16-7 Computing cash from asset sales LO P3
The following selected information is from Ellerby Company’s
comparative balance sheets.
At December
31
2017
2016
Furniture
$
157,500
$
218,500
Accumulated
depreciation—Furniture
(97,200
)
(119,200
)
The income statement reports depreciation expense for the year of
$26,500. Also, furniture costing $61,000 was sold for its book
value on December 31, 2017.
Complete the general ledger accounts to calculate the cash received
from the sale of furniture.
Furniture
Beg. bal....
QS 16-13 Computing cash from asset sales LO P3 CRUZ, INC. Comparative Balance Sheets December 31,...
QS 16-13 Computing cash from asset sales LO P3
CRUZ, INC.
Comparative Balance Sheets
December 31, 2019
2019
2018
Assets
Cash
$
64,300
$
16,100
Accounts receivable, net
27,600
34,100
Inventory
57,700
64,000
Prepaid expenses
3,600
2,900
Total current assets
153,200
117,100
Furniture
72,600
82,200
Accum. depreciation—Furniture
(11,200
)
(6,200
)
Total assets
$
214,600
$
193,100
Liabilities and Equity
Accounts payable
$
10,100
$
14,200
Wages payable
6,000
3,300
Income taxes payable
1,000
1,800
Total current liabilities
17,100
19,300...
Exercise 18-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product...
Exercise 18-12 Computing sales to achieve target income LO C2
Blanchard Company manufactures a single product that sells for $240
per unit and whose total variable costs are $180 per unit. The
company’s annual fixed costs are $954,000. Management targets an
annual pretax income of $1,500,000. Assume that fixed costs remain
at $954,000.
(1) Compute the unit sales to earn the target income.
Choose Numerator:
/
Choose Denominator:
=
Units to Achieve Target
/
=
Units to achieve target
(2)...
QS 13-6 Accounting for cash dividends LO P2 July 15 Declared a cash dividend payable to...
QS 13-6 Accounting for cash dividends LO P2
July
15
Declared a cash
dividend payable to common stockholders of $161,000.
Aug.
15
Date of record is
August 15 for the cash dividend declared on July 15.
Aug.
31
Paid the dividend
declared on July 15.
Prepare journal entries to record the above transactions for
Emerson Corporation. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
Journal entry worksheet
Record the...
Towbin Products sells merchandise on credit for $7,000 on December 1, 2019. The merchandise cost Towbin...
Towbin Products sells merchandise on credit for $7,000 on
December 1, 2019. The merchandise cost Towbin $4,900 (70% of the
selling price). Towbin estimates that returns and allowances will
amount to 4% of sales. On December 22, 2019, a customer returns for
credit merchandise originally sold on December 1 for $200. Assume
that Towbin uses a perpetual inventory system. Prepare the journal
entries to record the preceding sale and the return of
merchandise.
QS 16-27B Direct: Computing cash from operations LO P5 CRUZ, INC. Comparative Balance Sheets December 31,...
QS 16-27B Direct: Computing cash from operations LO P5
CRUZ, INC.
Comparative Balance Sheets
December 31, 2019
2019
2018
Assets
Cash
$
72,900
$
18,100
Accounts receivable, net
31,300
38,400
Inventory
65,600
72,100
Prepaid expenses
4,000
3,300
Total current assets
173,800
131,900
Furniture
80,600
93,500
Accum. depreciation—Furniture
(12,500
)
(7,100
)
Total assets
$
241,900
$
218,300
Liabilities and Equity
Accounts payable
$
11,400
$
16,100
Wages payable
6,800
3,800
Income taxes payable
1,200
2,100
Total current liabilities
19,400
22,000...
QS 12-6 Indirect: Computing cash from operations LO P2 MOSS COMPANY Selected Balance Sheet Information December...
QS 12-6 Indirect: Computing cash from operations LO P2
MOSS COMPANY
Selected Balance Sheet Information
December 31, 2019 and 2018
2019
2018
Current
assets
Cash
$
88,650
$
30,800
Accounts
receivable
29,000
40,000
Inventory
64,000
54,900
Current
liabilities
Accounts
payable
38,400
29,700
Income taxes
payable
2,450
3,000
MOSS COMPANY
Income Statement
For Year Ended December 31, 2019
Sales
$
555,000
Cost of goods
sold
347,600
Gross
profit
207,400
Operating
expenses
Depreciation
expense
$
44,000
Other
expenses
126,000
170,000
Income...
Exercise 9-11 (Static) Computing payroll taxes LO P2, P3 Mest Company has nine employees. FICA Social...
Exercise 9-11 (Static) Computing payroll taxes LO P2, P3
Mest Company has nine employees. FICA Social Security taxes are
6.2% of the first $132,900 paid to each employee, and FICA Medicare
taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes
are 5.4% of the first $7,000 paid to each employee. Cumulative pay
for the current year for each of its employees follows.
Employee
Cumulative Pay
Employee
Cumulative Pay
Employee
Cumulative Pay
Ken S
$
6,000
Julie...
Introduction to managerial Accounting 5E - pg 414 - PROBLEM 7–9 Preparing Merchandise Purchases and Cash...
Introduction to managerial Accounting 5E - pg 414 -
PROBLEM 7–9 Preparing Merchandise Purchases and Cash
Budgets
Kat Ltd.’s September balance sheet contains the following
information:
October 31 cash balance: $40,950
Cash $37,500 (dr)
Accounts Receivable $126,000 (dr)
Allowance for Doubtful Accounts $2,800 (cr)
Merchandise Inventory $26,250 (dr)
Management has designated $37,500 as the firm’s minimum monthly
cash balance.
Other information about the firm and its operations is as
follows:
a. Sales revenues of $350,000, $420,000, and $312,500 are
expected...
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