The following information relates to Eva Co's sales tax for the month of March 2015: 2$ 109,250 Sales (including sales tax) Purchases (net of sales tax) Sales tax is charged at a flat rate of 15%. Eva Co's sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month. What was the total sales tax paid to regulatory authorities during the month of March 2015? 64,000 A. 11910 B. 13162.17 C. 6470 m D. 14047.5

The following information relates to Eva Co's sales tax for the month of March 2015: 2$ 109,250 Sales (including sales tax) Purchases (net of sales tax) Sales tax is charged at a flat rate of 15%. Eva Co's sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month. What was the total sales tax paid to regulatory authorities during the month of March 2015? 64,000 A. 11910 B. 13162.17 C. 6470 m D. 14047.5

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
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
Question no. 1: McDowell Industries sells on terms of 4/10, net 40. Total sales for the year are $825,500. Thirty percent of customers pay on the 15th day and take discounts; the other 70% pay, on average, 60 days after their purchases. What is the days sales outstanding? What is the average amount of receivables? What would happen to average receivables if McDowell toughened its collection policy with the result that all non-discount customers paid on the 40th day? Question no.2: International Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and accounts receivable averaged 547,500. Half of International’s customers paid on the 15th day and took discounts. What are the nominal and effective costs of trade credit to International’s non-discount customers? (Hint: Calculate sales/day based on a 360-day year, then calculate average receivables of discount customers and then find the DSO for the non-discount customers. Question no.3: The D.J. Masson…
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