Hackensack Hotel collects 7% in city sales taxes on roomrentals. Sales taxes for each month are due
Question:
‘Hackensack Hotel collects 7% in city sales taxes on roomrentals. Sales taxes for each month are due at the end of thefollowing month. Hackensack Hotel had $300 in sales in November.What journal entry did Hackensack Hotel record to reflect thecollection of the sales taxes for future remittance to the taxauthority?
Dr. Cash -- $21
Cr. Revenue -- $21
Dr. Sales tax expense -- $21
Cr. Sales taxes payable -- $21
2-
Big Brother Corp. issues 500 shares of common stock with a $0.50par value. The issue price of the stock is $9 per share. Thecompany paid $150 in issuance costs directly from the proceeds ofthe share sale. What is the journal entry required to record theissuance of the? shares?
(Select all that apply.)
Cr. Additional Paid-In Capital -- $4250
Dr. Cash -- $4250
Dr. Cash -- $4500
Cr. Common Stock At Par -- $150
Cr. Additional Paid-In Capital -- $4350
Cr. Additional Paid-In Capital -- $4100
Cr. Common Stock At Par -- $250
Dr. Cash -- $4350
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton