Question: The following selected transactions relate to liabilities of Int

The following selected transactions relate to liabilities of Interstate Farm Implements for December of 2011. Interstate’s fiscal year ends on December 31.

Required:
Prepare the appropriate journal entries for these transactions.
1. On December 15, received $7,500 from Bradley Farms toward the purchase of a $98,000 tractor to be delivered on January 6, 2012.
2. During December, received $25,500 of refundable deposits relating to containers used to transport equipment parts.
3. During December, credit sales totaled $800,000. The state sales tax rate is 5% and the local sales tax rate is 2%. (This is a summary journal entry for the many individual sales transactions for the period.)


View Solution:


Sale on SolutionInn
Sales2
Views727
Comments
  • CreatedJuly 02, 2013
  • Files Included
Post your question
5000