1. Easy Motor Company makes sales on which an 8% sales tax is assessed. The following summary transactions were made during 2020: a. Cash sales of $900,000, excluding sales taxes b. Credit sales of $2,150,000, including sales taxes c. Sales taxes of $250,000 were paid to the state Required: Prepare journal entries to record the preceding transactions. (Round to the nearest whole number.)
1. Easy Motor Company makes sales on which an 8% sales tax is assessed. The following summary transactions were made during 2020: a. Cash sales of $900,000, excluding sales taxes b. Credit sales of $2,150,000, including sales taxes c. Sales taxes of $250,000 were paid to the state Required: Prepare journal entries to record the preceding transactions. (Round to the nearest whole number.)
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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1. Easy Motor Company makes sales on which an 8% sales tax is assessed. The following summary transactions were made during 2020:
a. Cash sales of $900,000, excluding sales taxes
b. Credit sales of $2,150,000, including sales taxes
c. Sales taxes of $250,000 were paid to the state
Required:
Prepare
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