Problem 10-1A On January 1, 2019, the ledger of Skysong, Inc. contains the follo

Question

Problem 10-1A On January 1, 2019, the ledger of Skysong, Inc. contains the following lability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue $56,400 8,200 16,000 During January, the following selected transactions occurred. Jan. 5 12 14 20 21 25 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) Paid state revenue department for sales taxes collected in December 2018 ($8,200) Sold 940 units of a new product on credit at $50 per unit, plus 8% sales tax. Borrowed $29,250 from Girard Bank on a 3-month, 896, $29,250 note Sold merchandise for cash totaling $12,420, which includes 8% sales taxes. ournalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Jan-05 Cash $ 20,520.00 Sales ($20,520*92%) $ 18,878.40 Sales tax payable ($20,520*8%) $    1,641.60 Jan-12 Unearned service revenue $ 11,000.00 Service revenue $ 11,000.00 Jan-14 Sales tax payable ($20,520*8%) $    8,200.00 Cash $    8,200.00 Jan-20 Accounts receivable $ 50,760.00 Sales (940*$50) $ 47,000.00 Sales tax payable ($47,000*8%) $    3,760.00 Jan-21 Cash $ 29,250.00 Note payable $ 29,250.00 Jan-25 Cash $ 12,420.00 Sales ($12,420*92%) $ 11,426.40 Sales tax payable ($12,420*8%) $        993.60

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.