ales Tax Transactions

Journalize the entries to record the following selected transactions:

a. Sold $22,600 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $13,600.

For a compound transaction, if an amount box does not require an entry, leave it blank.

	Accounts Receivable Sales Sales Discounts Sales Tax Expense Sales Tax Payable Correct 2 of Item 1	Correct 3 of Item 1	Correct 4 of Item 1
	Accounts Receivable Cash Sales Sales Discounts Sales Tax Expense Correct 5 of Item 1	Correct 6 of Item 1	Correct 7 of Item 1
	Accounts Receivable Cash Sales Discounts Sales Tax Expense Sales Tax Payable Correct 8 of Item 1	Correct 9 of Item 1	Correct 10 of Item 1
	Accounts Payable Cash Cost of Merchandise Sold Merchandise Inventory Sales Correct 12 of Item 1	Correct 13 of Item 1
	Accounts Payable Accounts Receivable Cash Cost of Merchandise Sold Merchandise Inventory Correct 14 of Item 1		Correct 15 of Item 1

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Solution

b. Paid $51,668 to the state sales tax department for taxes collected.

	Accounts Receivable Cash Sales Sales Tax Expense Sales Tax Payable Correct 2 of Item 2	Correct 3 of Item 2
	Cash Capital Stock Cost of Merchandise Sales Sales Tax Expense Sales Tax Payable Correct 4 of Item 2		Correct 5 of Item 2

Answer rating: 100% (QA)

Cash 135000 0 Accumulated DepreciationEquipment 696320 0 Equipment 0 800000 Gain on Sale of Equipment 0 31320 Cash 88750 0 Accumulated DepreciationEquipment 696320 0 Loss on Sale of Equipment 14930 0 ... View the full answer