Question: Most of the food sold in retail stores in California
Most of the food sold in retail stores in California is not subject to sales taxes (e.g., candy), but some items are (e.g., soft drinks). Apparently, the candy lobbyists were more effective than soft drinks lobbyists when dealing with the state legislature. Most cash registers are designed to record taxable sales and nontaxable sales and automatically add the appropriate sales tax. The sales for the past week in the local Whole Foods grocery store were $180,000 cash, of which $60,000 was taxable at a rate of 9%. By using the A = L + SE equation, show the impact on the entity, both now and when the sales taxes are paid at a later date. Also prepare corresponding journal entries.
Answer to relevant QuestionsDuring 20X0, the Ashley Appliance Company had cash sales of $800,000. The company estimates that the cost of servicing products under warranty will average 3% of sales. 1. Prepare journal entries for sales revenue and the ...On December 31, 20X1, Hartley Company issued a 3-year $10,000 bond that promises an interest rate of 12%, payable 6% semiannually. Compute the discounted present value of the principal and the interest as of December 31, ...Then answer the following questions: 1. It is your sixtieth birthday. You plan to work 5 more years before retiring. Then you want to spend $20,000 for a Mediterranean cruise. What lump sum do you have to invest now to ...On December 31, 2009, Idaho Mining, Inc., issued $50 million of 10-year, 6% debentures at par. 1. Compute the proceeds from issuing the debentures. 2. By using the balance sheet equation format, prepare an analysis of this ...On December 31, 20X0, a Zurich real estate holding company issued CHF10 million of 10-year, 8% debentures. The market interest rate at issuance was 8%. Suppose that on December 31, 20X1 (after all interest payments had been ...
Post your question