Exercise 9-3A (Algo) Recording sales tax LO 9-2 Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $146,000, not including tax. 3. Cost of goods sold was $209,000 for the year. 4. Paid $130,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart's net income for the year?

Exercise 9-3A (Algo) Recording sales tax LO 9-2 Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $146,000, not including tax. 3. Cost of goods sold was $209,000 for the year. 4. Paid $130,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart's net income for the year?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 58BE: ( Appendix 5A) Sales Discounts Harry Gardner provides tax services for small businesses. This years...

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Subject: accounting Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales. Book sales, not including sales tax, for Year 1 amounted to $250,000 cash. Cash sales of miscellaneous items in Year 1 were $85,000, not including tax. Cost of goods sold was $190,000 for the year. Paid $117,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart’s net income for the year?
Item5 10points Return to question Item 5 Lisa's Fashion Boutique operates in a state with 8 percent sales tax on all sales. DATE TRANSACTIONS 20X1 Feb. 2 Sold merchandise totaling $3,700 to customers using bank credit cards. Record the 11 percent discount on credit card sales at time of sale. 15 Sold merchandise totaling $3,200 to customers using American Express. 20 Received amount due from American Express, less their 12 percent discount, for sales made by customers using American Express on February 15. Required:Record the above transactions of Lisa’s Fashion Boutique in a general journal. (Round your intermediate calculations and final answers to 2 decimal places.) Prev Question 5 of 10 Total5 of 10 Visit question mapNext
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales. Book sales, not including sales tax, for Year 1 amounted to $271,000 cash. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Cost of goods sold was $209,000 for the year. Paid $128,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Requireda. What is the total amount of sales tax Vail Book Mart collected and paid for the year?b. Prepare the journal entries for the preceding transactions. 1.Book sales, not including sales tax, for Year 1 amounted to $271,000 cash. Record the transaction. 2.Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Record the transaction. 3.Cost of goods sold was $209,000 for the year. Record the transaction. 4.Paid $128,000 in operating…
QS 11-3 (Algo) Accounting for sales taxes LO C2 Dextra Computing sells merchandise for $14,000 cash on September 30 (cost of merchandise is $9,800). Dextra collects 4% sales tax. Record the entry for the $14,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 6 percent is collected on all sales. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Cost of gods sold was $211,000 for the year. Paid $130,000 in operating expenses for the year. Paid the sales tax collected to the state agency. What is the total amount of sales tax Vail Book Mart collected and paid for the year? Prepare the journal entries for the preceding transactions. What is Vail Book Mart's net income for the year?
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 6 percent is collected on all sales. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Cost of gods sold was $211,000 for the year. Paid $130,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Required What is the total amount of sales tax Vail Book Mart collected and paid for the year? Prepare the journal entries for the preceding transactions. What is Vail Book Mart's net income for the year?
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…
10. Loudoun Trucking purchases 4,750 truck tires. The federal excise tax is $0.13 per tire. Find the amount (in $) of the excise tax for this transaction. $
PROBLEM: 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 taxesb. Credit sales of $2,150,000, including sales taxesc. 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.)
Chapter 10 Discussion Sales tax: Remember that the customer is charged the sales tax and the company is responsible for sending the sales tax dollars to the appropriate government entity. The company has sales of $3,500 in cash and $4,400 on account. The sales tax rate is 6%. Make the journal entry to record the sales and sales tax Installment notes: Remember that the monthly payment stays the same, but the amount of that payment that is interest continues to go down and the payment of the principal continues to go up. Assume that on January 1, the company borrows $50,000 from Chase Bank for 4 years at 5% interest. The installment payment is $1,200 every month. Calculate the interest amount and principal amount for the first and second months
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail engaged in the following transactions during the year. Sales tax of 8 percent is collected on all sales. Book sales, not including sales tax, for the year amounted to $278,000 cash. Cash sales of miscellaneous items for the year were $150,000, not including tax. Cost of goods sold was $208,000 for the year. Paid $132,000 in operating expenses for the year. Paid the sales tax collected to the state agency. What is the total amount of sales tax Vail Book Mart collected and paid for the year? What is the Vail Book Mart’s net income for the year?
Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax. (1) Record the entry for the $6,000 sale and its sales tax. (2) Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.