Listed below are selected transactions of Jian Furniture Store for the current year ending December 31. 1.
Question:
Listed below are selected transactions of Jian Furniture Store for the current year ending December 31. 1. On December 1, the store purchased for cash two delivery trucks for $70,000. The trucks were purchased in a state that applies a 6% sales tax. 2. On December 10, the store received $2,000 from the local community theater as a deposit to be returned after certain furniture to be used in stage production was returned on January 10. 3. During December, cash and credit card sales totaled $524,000, which includes the 6% sales tax that must be remitted to the state by the fifteenth day of the following month. 4. The store determined it will cost $78,000 to restore the area (considered a land improvement) surrounding one of its parking lots, when the store is closed in 5 years. Jian estimates the fair value of the obligation at December 31 is $61,500.
1. What is the amount that reflects the cost of the trucks? |
2. What is the amount recorded as due to customer? |
3. What is the amount of sales tax payable? |
4. What is the amount of sales? |
5. What is the amount of the land improvement? |
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy