Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 11, Problem 3QC
A company sells $180,000 (selling price) of goods and collects sales tax of 8%. What current liability does the sale create?
a. Sales tax payable of $14,400
b. Sales revenue of $194,400
c. Unearned revenue of $14,400
d. None; the company collected cash up front.
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A company sells $180,000 (selling price) of goods and collects sales tax of 8%. What current liability does the sale create?
a. Sales tax payable of $14,400
b. Sales revenue of $194,400
c. Unearned revenue of $14,400
d. None; the company collected cash up front.
A company sells $180,000 (sales price) of goods and collects sales tax of 8%. What current liability does the sale create?
A. Sales tax payable of $14,400
B. Sales revenue of $194,400
C. Unearned revenue of $14,400
D. None; the company collected cash up front
A company sells $170,000 (sales price) of goods and collects sales tax of 5%. What current liability does the sale create?
A. Sales tax payable of $8,500
B. Sales revenue of $178,500
C. Unearned revenur of $8,500
D. None; the company collected cash up front.
Chapter 11 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
Ch. 11 - Prob. 1QCCh. 11 - On January 1, 2016, a business borrowed 18,000 on...Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QCCh. 11 - Prob. 10QC
Ch. 11 - Prob. 1RQCh. 11 - What is a current liability? Provide some examples...Ch. 11 - How is sales tax recorded? Is it considered an...Ch. 11 - How do unearned revenues arise?Ch. 11 - What do short-term notes payable represent?Ch. 11 - Coltrane Company has a 5,000 note payable that is...Ch. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - What are the two main controls for payroll?...Ch. 11 - When do businesses record warranty expense, and...Ch. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Determining current versus long-term liabilities...Ch. 11 - Prob. 11.2SECh. 11 - Prob. 11.3SECh. 11 - Accounting for a note payable On December 31,...Ch. 11 - Prob. 11.5SECh. 11 - Prob. 11.6SECh. 11 - Computing payroll amounts considering FICA tax...Ch. 11 - Prob. 11.8SECh. 11 - Prob. 11.9SECh. 11 - Prob. 11.10SECh. 11 - Prob. 11.11SECh. 11 - Accounting treatment for contingencies Fernandez...Ch. 11 - Prob. 11.13SECh. 11 - Recording sales tax Consider the following...Ch. 11 - Prob. 11.15ECh. 11 - Recording and reporting current liabilities...Ch. 11 - Journalizing current liabilities Erik OHern...Ch. 11 - Prob. 11.18ECh. 11 - Recording employer payroll taxes and employee...Ch. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25APCh. 11 - Prob. 11.26APCh. 11 - Journalizing liability transactions T he following...Ch. 11 - Journalizing liability transactions The following...Ch. 11 - Prob. 11.29APCh. 11 - Prob. 11.30BPCh. 11 - Prob. 11.31BPCh. 11 - Prob. 11.32BPCh. 11 - Prob. 11.33BPCh. 11 - Prob. 11.34BPCh. 11 - Prob. 11.35CPCh. 11 - Prob. 11.1CTDCCh. 11 - Sell-Soft is the defendant in numerous lawsuits...Ch. 11 - Prob. 11.1CTEICh. 11 - Derails about a company's liabilities appear in a...Ch. 11 - Prob. 11.1CTCA
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- A company sells $100,000 (sales price) of goods and collects sales tax of 7%. What current liability does the sale create? OA. Unearned revenue of $7,000 OB. Sales revenue of $107,000 OC. Sales tax payable of $7,000 OD. None; the company collected cash up front.arrow_forwardA company sells $180,000 (selling price) of goods and collects sales tax of 8%. What current liability does the sale create? Sales tax payable of $14,400 Sales revenue of $194,400 Unearned revenue of $14,400 None; the company collected cash up front.arrow_forwardA company receives $696, of which $56 is for sales tax. The journal entry to record the sale would include a Select one: a. debit to Cash for $996. b. debit to Sales Taxes Payable for $56. c. debit to Sales Tax Expense for $56. d. The answer does not exist e. debit to Sales Revenue for $696.arrow_forward
- A company receives $696, of which $56 is for sales tax. The journal entry to record the sale would include a Select one: a. debit to Sales Tax Expense for $56. b. debit to Sales Taxes Payable for $56. C. debit to Sales Revenue for $696. d. debit to Cash for $696.arrow_forwardA sale of merchandise on account for $12,000 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale (b) What is the amount of the sale?$fill in the blank 2 (c) What is the amount of the increase to Accounts Receivable? If required, round your answers to nearest whole value.$fill in the blank 3 (d) What is the title of the account in which the $960 (12,000 x 8%) is credited?Sales Tax Payablearrow_forwardA company sells 180,000 (sale price) of goods and collect sales tax of 8%. What current liability does the sale create?arrow_forward
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- Dillons Corporation made credit sales of $30,000 which are subject to 6% sales tax The corporation also made cash sales which totaled $20 670 including the 6% sales tax. Prepare the entry to record Dillons Cash Sales O Cash S20,670 Sales Revenue S20 670 O Cash $20 670 Sales Revenue $19.500 Sales Tax Payable $1.170 Accounts Receivable 520.670 Sales Revenue $19.600 Sales Tax Payable $1.170 None of the Abovearrow_forwardIn its first period of trading a business has charged sales tax of $12,000 on its credit sales and $2,000 on its cash sales. Sales tax suffered on credit purchases is $3,000 and on cash expenses and purchases is $1,500. The amount owed to the government is $______________arrow_forwardCheyenne Corporation made credit sales of $30,600 which are subject to 7% sales tax. The corporation also made cash sales which totaled $10,593 including the 7% sales tax. (a) Prepare the entry to record Cheyenne's credit sales. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Accounts Payable Cash Debit Creditarrow_forward
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