Rahul 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 inthe following transactions for Year 1. Sales tax of 6 percent is collected on all sales.1. Book sales, not including sales tax, for Year 1 amounted to $274,000 cash.2. Cash sales of miscellaneous items in Year 1 were $148,000, not including tax.3. Cost of goods sold was $210,000 for the year.4. Paid $129,000 in operating expenses for the year.5. 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.c. What is Vail Book Mart's net income for the year?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CWhat is the total amount of sales tax Vail Book Mart collected and paid for the year?Sales tax collected and paid< Required ARequired B >

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Answered: Vail Book Mart sells books and other…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 18P

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Bell Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Bells sales staff fills out a sales slip for each sale. There is a state retail sales tax of 5 percent, which is collected by the retailer and submitted to the state. The balances of the accounts as of March 1 have been recorded in the general ledger in your Working Papers or in CengageNow. The following represent Bell Florists charge sales for March: Mar. 4Sold potted plant on account to C. Morales, sales slip no. 242, 27, plus sales tax of 1.35, total 28.35. 6Sold floral arrangement on account to R. Dixon, sales slip no. 267, 54, plus sales tax of 2.70, total 56.70. 12Sold corsage on account to B. Cox, sales slip no. 279, 16, plus sales tax of 0.80, total 16.80. 16Sold wreath on account to All-Star Legion, sales slip no. 296, 104, plus sales tax of 5.20, total 109.20. 18Sold floral arrangements on account to Tucker Funeral Home, sales slip no. 314, 260, plus sales tax of 13, total 273. 21Tucker Funeral Home complained about a wrinkled ribbon on the floral arrangement. Bell Florists allowed a 30 credit plus sales tax of 1.50, credit memo no. 27. 23Sold flower arrangements on account to Price Savings and Loan Association for its fifth anniversary, sales slip no. 337, 180, plus sales tax of 9, total 189. 24Allowed Price Savings and Loan Association credit, 25, plus sales tax of 1.25, because of a few withered blossoms in floral arrangements, credit memo no. 28. Required 1. Record these transactions in the general journal. 2. Post the amounts from the general journal to the general ledger and accounts receivable ledger: Accounts Receivable 113, Sales Tax Payable 214, Sales 411, Sales Returns and Allowances 412. 3. Prepare a schedule of accounts receivable and compare its total with the balance of the Accounts Receivable controlling account.
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…
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. 1. Book sales, not including sales tax, for year 1 amounted to $275,000 cash. 2. Cash sales of miscellaneous items in year 1 were $149,000, not including sales tax. 3. Cost of goods sold was $210,000 for the year. 4. Paid $128,000 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 Vali 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?
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?
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 $250,000 cash. Cash sales of miscellaneous items for the year 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 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?
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?
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
On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
At the end of the first quarter, the accountant for David Fly Fishing Outfitters determines that the total sales tax payable for the quarter is $3,240.50. When the sales tax is paid to the state, the accountant debits Sales Tax Payable and credits Cash for the total amount due.
The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. Cash sales for November Year 1 were $65,000, plus sales tax of 10 percent. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Cash sales for December Year 1 were $79,500, plus sales tax of 10 percent. Requireda. Record the preceding transactions in general journal form.b. Show the effect of the preceding transactions on a horizontal statements model like the one shown next.c. What was the total amount of sales tax paid in Year 1?d. What was the total amount of sales tax collected in Year 1?e. What amount of sales tax expense will be reported on the Year 1 income statement?
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.

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