User Account

All Pages

What amount of sales tax expense will be reported

Assignment Help Accounting Basics
Reference no: EM13925611

The following selected transactions apply to Valley Supply for November and December 2013. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month.

1. Cash sales for November 2013 were $146,000 plus sales tax of 7 percent. 2. Valley Supply paid the November sales tax to the state agency on December 10, 2013. 3. Cash sales for December 2013 were $175,000 plus sales tax of 7 percent. 

Required: 

a. Record the above transactions in general journal form. 
b. Show the effect of the above transactions on a statements model like the one shown below.

574_264-B-A-L (2842).png

c. What was the total amount of sales tax paid in 2013? 
d. What was the total amount of sales tax collected in 2013? 
e. What amount of sales tax expense will be reported on the 2013 income statement? 

Reference no: EM13925611

Questions Cloud

Research information related to the marketing : In this assignment, you will research information related to the marketing and promotion of the acquisition by EDUS and provide an assessment. Click here to review the EDUS case and consider the following:
Differences between a majority opinion, a concurring opinion : In the story, two justices wrote differing opinions about the issue. Discuss the differences between a majority opinion, a concurring opinion, and a dissenting opinion. What effect does each type of opinion have on the state of the law in America?
Discuss week objectives with team : Discuss this week's objectives with your team. Include the topics you feel comfortable with, any topics you struggled with, and how the topics relate to your field.
Describe your method of sampling : Describe your method of sampling. Describe the type of data you need to collect and how you will collect it.
What amount of sales tax expense will be reported : What amount of sales tax expense will be reported on the 2013 income statement?
Create a journal ledger : he cost of the merchandise sold was $47,000. Received cash from sale of May 20, less discount, plus freight paid on May 21. Paid for purchase of May 21, less return of May 24 and discount.
What is the purpose of risk management industry standards : What is the purpose of risk management industry standards? What responsibilities does senior management assume in a risk management system?
Bond price results in the most interest expense : Journalize Jefferson's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at par value, 93, 105. Which bond price results in the most interest expense for Jefferson?
Skechers usa : Skechers USA, Inc for fiscal 2011 (in thousands):Total 2011 revenue $1,846,361 Total revenue growth rate 15.0%

Reviews

Write a Review

Accounting Basics Questions & Answers

  Preparing a budget showing the quantity of switches

Prepare a budget showing the quantity of switches to be purchased each month for January, February, and March and in total for the quarter.

  Nature of accounting misstatements and implication

Discuss the nature of accounting misstatements and the implication of each to fair presentation of the financial statements.

  What would the companys monthly net operating income be if

perkins company produces and sells a single product. the companys income statement for the most recent month is given

  Prepare the journal entry that calico corners record

First Central Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the journal entry that Calico Corners makes to record this sale.

  Ted paid utility bills amounting to $3,000

Ted paid utility bills amounting to $3,000. He also received a utility bill for $1,000 that he had not paid at month end. Record the opening balances on a work sheet similar to that illustrated in the text, and then analyze these transactions on t..

  Front company had net income of 72500 based on variable

front company had net income of 72500 based on variable costing. beginning and ending inventories were 800 units and

  Financial reporting decisions do not affect corporate

financial reporting decisions do not affect corporate taxation however corporate taxation does affect financial

  Assume shin uses a periodic system and fifo use the

shin company sells one product. presented below is information for january for shin company.jan. 1 inventory 300 units

  Construct the direct labor budget

With the number of workers currently employed, that means that the company is committed tp paying its direct labor work force at lease 5600 hours in total each month even if there is not enought work to keep them busy. Construct the direct labor b..

  Develop five rules a student could use in selecting a career

You have been hired to develop an expert system for a university career placement center. Develop five rules a student could use in selecting a career.

  Tax basis or at-risk amount

During the year, ABC LP generated a ($90,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?

  The inventory accounts for billings incorporated for the

the inventory accounts for billings incorporated for the years ending december 31 2011 2012 and 2013 are shown in the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd