Wheeling Computing sells merchandise for $12,000 cash on September 30 (cost of merchandise is $7,800). The sales tax law requires Wheeling to collect 6% sales tax on every dollar of merchandise sold. Record the entry for the $12,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 6% tax on this sale to the state government on October 15.
Answer to relevant QuestionsDenise Co. has five employees, each of whom earns $3,000 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $106,800 paid to each employee, and FICA Medicare taxes are 1.45% of ...On September 11, 2010, Lawn Outfitters sells a mower for $750 with a one-year warranty that covers parts. Warranty expense is estimated at 3% of sales. On July 24, 2011, the mower is brought in for repairs covered under the ...Using the data in situation a of Exercise 9-6, prepare the employer’s September 30 journal entries to record (1) Salary expense and its related payroll liabilities for this employee. (2) The employer’s payroll taxes ...On October 29, 2010, Bram Co. began operations by purchasing razors for resale. Bram uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a ...JLS Company has 12 employees, each of whom earns $3,000 per month and is paid on the last day of each month. All 12 have been employed continuously at this amount since January 1. JLS uses a payroll bank account and special ...
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