TireCo is a retail store in a state that imposes a 6 percentsales tax. Would you expect to find sales tax expense andsales tax payable in TireCo’s financial statements? Explain.
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TireCo is a retail store in a state that imposes a 6 percent
sales tax. Would you expect to find sales tax expense and
sales tax payable in TireCo’s financial statements? Explain.
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- As a retailer, Zertan Corporation sells software programs manufactured and packaged by other parties. Zertan also purchases computer parts, assembles them as specified by customers in purchase orders, and sells them as operating stand-alone computers. All of Zertan's operations take place in State F, which levies a 9% sales tax. Results for the current year are as follows: a) What is Zertan's own sales tax expense for the year? __________ b) How much State F sa;es tax must Zertan collect and pay to the state on behalf of other taxpayers subject to the tax? ___________Like all retailers, Hollister is required to collect sales tax to be remitted to state and local government authorities. Assume a local store has cash proceeds from sales of $5,325, including $325 in sales tax. What is the sales tax rate? Provide the journal entry to record the proceeds.Yesterday Estate Jewelers had total sales, including sales tax, of $16,502.50. The store is located in a state that has a sales tax of . the accountant for the 6 3/4% store , calculate : the anount of sales revenue and the amount of sales tax that must be sent to the state department of revenue
- Cantrell co. is required by law to collect and remit sale taxes to the state. if Cantrell has 3,500 of cash sales that are subject to an 10% sales tax, what is the journal entry to record the cash sales ?Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $3,500 of cash sales that are subject to an 10% sales tax, what is the journal entry to record the cash sales?Tennis Shoe Warehouse operates in a state with a 6.5% sales tax. For convenience, TennisShoe Warehouse credits Sales Revenue for the total amount (selling price plus sales tax) collectedfrom each customer. If Tennis Shoe Warehouse fails to make an adjustment for sales taxes,a. net income will be understated and liabilities will be overstated.b. net income will be overstated and liabilities will be overstated.c. net income will be overstated and liabilities will be understated.d. net income will be understated and liabilities will be understated.
- Which of the following is true? a. Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register as VAT taxpayers cannot register back as non-VAT because of the three-year lock-in period. b. A VAT taxpayer may also be subject to other percentage taxes and excise taxes provided a range of goods and services offered. c. The basis on imposing a consumption tax on the sale of services is the quarterly sales. d. Exportation made by business taxpayers normally subject to the general percentage tax is taxable for consumption taxes. e. All of the other choices is incorrect.The taxpayer started operating a grocery store during 2018. He submits the following data: Merchandise Inventory P 469,000 Gross sales 2,814,000 Purchases from VAT registered entities (net) 1,563,000 Purchases from non-VAT registered entities 312,000 Determine the following: What is the applicable business tax for the taxpayer? How much is the correct business tax due? Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year? Assume the taxpayer is VAT registered, how much is the VAT payable for the year?Tennis Shoe Warehouse operates in a state with a 6.5% sales tax. For convenience, Tennis Shoe Warehouse credits Sales Revenue for the total amount (selling price plus sales tax) collected from each customer. If Tennis Shoe Warehouse fails to make an adjustment for sales taxes, ……Select one:a. net income will be understated and liabilities will be overstated.b. net income will be overstated and liabilities will be overstated.c. net income will be understated and liabilities will be understated.d. net income will be overstated and liabilities will be understated.
- Which of the following is correct? Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register as VAT taxpayers cannot register back as non-VAT because of the three-year lock-in period. A VAT taxpayer may also be subject to other percentage taxes and excise taxes provided a range of goods and services offered. The basis on imposing a consumption tax on the sale of services is the quarterly sales. Exportation made by business taxpayers normally subject to the general percentage tax is taxable for consumption taxes. All of the other choices is incorrect.Harriet is the owner of a small grocery store with gross sales in any one year period that do not exceed P3,000,000. She is not a VAT registered taxpayer. She submits the following data for the month of January 2021.Merchandise Inventory, Dec 31, 2020, P123,450Gross sales, P240,000Purchases from VAT registered suppliers, P156,980How much is the percentage tax due? P9,963 P2,400 P28.800 P6,780The following are the data extracted from the books of a retailer and registered with the National Gulf Tax Agency, which deals in several items, some of whichare taxable, some of which are exempted for the month of March 2019 first purchases during the month:1 - Goods purchased in the amount of 40,000 dinars and paid tax at the rate of 5% (BD2000) 420002- goods purchased in the amount of 180000 tax exempt second obtained from sales during the month- 63000 BD with Total tax of the sale of goods subject to VAT2 - 190000 dinars obtained from the sale of tax-exempt goods required preparation of M Summarize VAT for March 2019 explaining the amount of VAT.
