The following selected transactions relate to liabilities of Chicago Glass Corpo
ID: 2474374 • Letter: T
Question
The following selected transactions relate to liabilities of Chicago Glass Corporation for 2016. Chicago's fiscal year ends on December 31.
On January 15, Chicago received $7,600 from Henry Construction toward the purchase of $72,000 of plate glass to be delivered on February 6.
On February 3, Chicago received $7,300 of refundable deposits relating to containers used to transport glass components.
On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price.
First quarter credit sales totaled $760,000. The state sales tax rate is 4% and the local sales tax rate is 2%.
Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The following selected transactions relate to liabilities of Chicago Glass Corporation for 2016. Chicago's fiscal year ends on December 31.
Explanation / Answer
Date Purticulars Dr Cr 15 - Jan. Cash 7600 Henry Construction 7600 (Being $7600 received towards sale of $72,000.) 03 - Feb. Cash 7300 Deposits Paid 7300 (Being Deposit returned to us) 06 - Feb. Cash 64400 Henry Construction 64400 (Being cash received for sale of plate glass to Henry Constructions 31 - Mar. A/R Sales 742000 Sales 700000 Sales Tax Payble 42000 (Being goods sold and tax payble 6%)
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