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Question - The following selected transactions relate to liabilities of Ponce Glass Corporation for 2021. Ponce's year ends on December 31.
1. On January 15, Ponce received $7,000 from Henry Construction toward the purchase of $66,000 of plate glass to be delivered on February 6.
2. On February 3, Ponce received $6,700 of refundable deposits relating to containers used to transport glass components.
3. On February 6, Ponce delivered the plate glass to Henry Construction and received the balance of the purchase price.
4. First quarter credit sales totaled $700,000. The state sales tax rate is 10.5% and the local sales tax rate is 1%.
Required - Prepare journal entries for the above transactions.
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