Question: Weston Cellular provides wireless phone service. During April 2012, it billed a customer a total of $135,000 before taxes. Weston also must pay the following

Weston Cellular provides wireless phone service. During April 2012, it billed a customer a total of $135,000 before taxes. Weston also must pay the following taxes on these charges:
a. State of Illinois sales tax of 7 percent
b. Federal excise tax of 0.2 percent
c. State of Illinois use tax of 0.3 percent

Required:
Assuming Weston collects these taxes from the customer, what journal entry would Weston make when the customers pay their bills?

Step by Step Solution

★★★★★

3.26 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Journal Date Account and Explanation Debit Credit ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

563-B-M-A-P-E (2094).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Five years ago, Firm SJ purchased land for $110,000 with $10,000 of its own funds and $100,000 borrowed from a commercial bank. The bank holds a recourse mortgage on the land. For each of the...

Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll: Item Amount Monthly salaries .................... $237,480...

McKean Entertainment sells televisions and other sound and video equipment. Sales and expected warranty claims for the year are as follows: Required: 1. Prepare the entry to record warranty expense...

Clinton Power provides electricity to a wide area of western Kentucky. During October 2011 it billed 20,000 of its residential customers located in the town of Heyworth a total of $2,435,000 for...

Sales Tax} Weinstein Cellular provides wireless phone service. During April 2018, it billed a customer a total of $\$ 135,000$ before taxes. Weinstein also must pay the harmonized sales...

SALES TAX Weston Cellular provides wireless phone service. During April 2010, it billed customers a total of $75,000 before taxes. Weston also must pay the following taxes on these charges: . State...

Exercise 8-67 (Algorithmic) Sales Tax Weston Cellular provides wireless phone service. During April 2020, it billed customers a total f $118,000 before taxes. Weston also must pay the following taxes...

Sales Tax Weston Cellular provides wireless phone service. During April 2014, it billed customers a total of $113,000 before taxes. Weston also must pay the following taxes on these charges: State of...

Weston Cellular provides wireless phone service. During April 2010, it billed customers a total of $75,000 before taxes. Weston also must pay the following taxes on these charges: 1. State of...

Exercise 8-67 (Algorithmic) Sales Tax Phillippi Phones, Inc. provides wireless phone service. During April 2020, it billed customers a total of $185,000 before taxes. Phillippi also must pay the...

Phillippi Phones, Inc. provides wireless phone service. During April 2014, it billed customers a total of $111,000 before taxes. Phillippi also must pay the following taxes on these charges: State of...

An industrial load consumes 44 kW at 0.82 pf lagging from a 220

The following information describes a companys usage of direct labor in a recent period. Compute the direct labor rate and efficiency variances for the period. Actual direct labor hours used . . . ....

You have recently received a takeover offer for your privately held ball bearing manufacturing company. This past year was much like most other years and resulted in $250,000 of net income for the...

***u//:sdnu KPMG is not Upton Park Limited's (UPL) regular tax adviser. However, the KPMG tax partner has regularly met with the CFO Veronika Gruenholz, and provided insights on UPL's industry, with...

Read the Seattle Pacific Hotel case with particular focus to the Project Financing/Sources of Funds box and the Tax Credit Analysis box. Assuming the following factors change: The current yield for...

Sponsored search, or pay-per-click search advertisements, are a popular form of internet advertising. These ads show up along other search results when a consumers searches for various terms on...

In August of 2017 Ernie dies of old age. Ernie was an oil wildcatter who left a fortune valued at $20 million at the time of death, mostly in the form of working interests in oil wells. He leaves...

Scenario Brad Winston is the owner and operator of Fishing Unlimited, a charter fishing business operated out of Oregon Inlet, NC. Brad has been taking groups of guests offshore to fish for tuna and...

How might the elaboration likelihood model be used to interpret how the Royal Navy advertising works?

Determining sales and variable cost volume variances Required Use the information provided in Exercise 15-3. a. Determine the sales and variable cost volume variances. b. Classify the variances as...

Use the standard price and cost data provided in Exercise 15-3. Assume that the actual sales price is $7.20 per unit and that the actual variable cost is $3.30 per unit. The actual fixed...

According to its original plan, Burnett Consulting Services Company would charge its customers for service at $220 per hour in 2009. The company president expects consulting services provided to...

Please show your work and not using excel. Thank you! A.What is the value of a $1000 par value bond, 8% coupon paid annually, 25 years to maturity if investors require a 9.5% return? B.What is the...

Compare these 4 scenarios by calculating the future values. You are starting your career with $0 savings in your retirement account. Assume you will work 30 years then retire with a half million...

In a container of gas, all molecules have the same kinetic energy at a certain temperature T. True O False