Question

Venus Office Supplies began operations October 1, 2016. The firm sells its merchandise for cash and on open account. Sales are subject to a 5 percent sales tax. During October, Venus Office Supplies engaged in the following transactions:

DATE TRANSACTIONS
2016
Oct. 1 Sold merchandise on credit to Luis Beltazar, CPA; issued Sales Slip 101 for $600 plus sales tax of $30.
4 Sold merchandise on credit to Cervantes Consulting; issued Sales Slip 102 for $360 plus sales tax of $18.
12 Sold merchandise on credit to Andrew Mitchell, Attorney at Law; issued Sales Slip 103 for $450 plus sales tax of $22.50.
15 Recorded cash sales for the period from October 1 to October 15 of $3,825 plus sales tax of $191.25.
25 Sold merchandise on credit to A.D. & M. Escrow; issued Sales Slip 104 for $980 plus sales tax of $49.
28 Received a check from Cervantes Consulting of $175 to apply on account.
31 Recorded cash sales for the period from October 16 to October 31 of $4,350 plus sales tax of $217.50.
31 Received payment in full from Luis Beltazar, CPA for the sale of October 1.

INSTRUCTIONS
1. Open the general ledger accounts indicated below.
2. Record the transactions in a general journal. Use 1 as the journal page number.
3. Post the entries from the general journal to the appropriate general ledger accounts.
GENERAL LEDGER ACCOUNTS
101 Cash 221 Sales Tax Payable
111 Accounts Receivable 401 Sales
Analyze: How much is owed for sales taxes collected at October 31?



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  • CreatedAugust 08, 2014
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