Heines Clocks is a retailer of wall, mantle, and grandfather clocks and is locat

Question

Heines Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $20,000 cash plus 4 percent sales tax. The clock had originally cost Heines $16,000. Assume Heines uses a perpetual inventory system.

Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Heines Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $20,000 cash plus 4 percent sales tax. The clock had originally cost Heines $16,000. Assume Heines uses a perpetual inventory system.

Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

1)Cash Debit $ 20800

Sales Credit $ 20000

Sales tax payable credit $ 800

2) Cost of goods sold debit $ 16000

Inventory credit $ 16000

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