9. Current Liabilities
Sales Tax Payable
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Practice this topic
- Multiple Choice
Blue Skies Supplies does not keep separate records of revenues and sales taxes at the time of sale. The register totals for October 21 are $20,776. All sales are subject to a 6% sales tax. If all cash receipts were originally included in Sales Revenue, the journal entry to adjust for sales taxes payable would include:
221views3rank - Open Question
Crystal Company does not segregate sales and sales taxes in its register. The register total for May 5 is $27,560, which includes a 6% sales tax. Prepare the journal entry to record the sales and related taxes.
106views2rank - Open Question
ABC Company sold subscriptions to customers based on the following timeline:
September 1 Sold one-year subscriptions, collecting cash of $3,600, plus sales taxes of 10%.
October 31 Paid the sales taxes to the state taxing authority.
December 31 Recorded necessary year-end adjusting entriesPrepare journal entries for each of the events provided.
101views3rank - Multiple ChoiceWhich of the following accounts is credited by the seller when tax is collected on retail sales?8views
- Multiple ChoiceWhen calculating the tip at a restaurant, how does including sales tax in the bill affect the total tip amount you leave?8views
- Multiple ChoiceWhich of the following accounts is credited by the seller when sales tax is collected on retail sales?27views