(Adjusting Entry for Sales Tax and VAT) Eastwood Ranchers sells a herd of cattle to Rozo Meat Packers for €30,000 and the related VAT. Rozo Meat Packers sells the beef to Wrangler Supermarkets for €40,000 and the related VAT. Wrangler Supermarkets sells this beef to customers for €50,000 plus related VAT.Instructionsa. Assuming the VAT is 15% on all sales, prepare the journal entry to record the sale by Rozo Meat Packers to Wrangler Supermarkets.b. What is the net cash outlay that Eastwood Ranchers incurs related to the VAT?

Question

(Adjusting Entry for Sales Tax and VAT) Eastwood Ranchers sells a herd of cattle to Rozo Meat Packers for €30,000 and the related VAT. Rozo Meat Packers sells the beef to Wrangler Supermarkets for €40,000 and the related VAT. Wrangler Supermarkets sells this beef to customers for €50,000 plus related VAT.
Instructions
a. Assuming the VAT is 15% on all sales, prepare the journal entry to record the sale by Rozo Meat Packers to Wrangler Supermarkets.
b. What is the net cash outlay that Eastwood Ranchers incurs related to the VAT?

Expert Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.
Tagged in
BusinessAccounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: How do I solve this problem? I attempted it and got 79,100 for my final answer but I'm not sure if I...

A: Cash flow statement: Cash flow statement displays the summary of all inflows and outflows of cash in...

Q: How do I solve this problem?

A: Equivalent Units of Production:  It is an evaluation of the work completed during the period express...

Q: Required information Problem 14-44 (LO 14-2) The following information applies to the questions disp...

A: Tax basis is the value of an asset that is used for computing gain or loss when the asset is sold. I...

Q: Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan f...

A: Once the production units are computed, the raw material purchases in pounds are determined. The pur...

Q: The following operating information reports the results of Swifty Company’s production and sale of 1...

A: Operating income: Operating income is the income earned by the business from its operating activitie...

Q: Brief Exercise 15-8Marin Inc. has outstanding 10,400 shares of $10 par value common stock. On July 1...

A: Preparation of the journal entries to record the repurchased the outstanding shares as on July 1, 20...

Q: Cheyenne Corp. was organized on January 1, 2017. It is authorized to issue 21,000 shares of 7%, $53 ...

A: The journal entries for the transactions are as follows :

Q: Ramos Co. provides the following sales forecast and production budget for the next four months:  ...

A: Budget:Budget refers to the financial plan for the business activities a company intends to do in th...

Q: The MRS , professional soccer team, prepares financial statements on a monthly basis. The soccer sea...

A: Adjusting Entries: Adjusting entries refers to those journal entries which are prepared at the end o...