On July 10, Kelt Company, a business located in Alberta, purchased $45,000 of inventory for resale on account. On July 25, Kelt recorded the sale of that merchandise on account for $50,000 plus tax. On August 10, Kelt remitted GST to the Receiver General. They had no other sales or input tax credits. Journalize all three transactions.

On July 10, Kelt Company, a business located in Alberta, purchased $45,000 of inventory for resale on account. On July 25, Kelt recorded the sale of that merchandise on account for $50,000 plus tax. On August 10, Kelt remitted GST to the Receiver General. They had no other sales or input tax credits. Journalize all three transactions.

Name: On July 10, Kelt Company, a business located in Alberta, purchased $4
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: On July 10, Kelt Company, a business located in Alberta, purchased $45,000 of inventory for resale on account. On July 25, Kelt recorded the sale of that merchandise on account for $50,000 plus tax. On August10, Kelt remitted GST to the Receiver Gen

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

See similar textbooks

Similar questions

Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $5,100 of merchandise on account, subject to a sales tax of 7%. The cost of merchandise sold was $3,010. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Paid $47,320 to the state sales tax department for taxes collected.
On July 5, Brenner Company recorded sales of merchandise inventory on account, $25,000. The sales were subject to sales tax of 10%. On August 15, Brenner Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.
On July 5, Feather Company recorded sales of merchandise inventory on account, $20,000. The sales were subject to sales tax of 9%. On August 15, Feather Company paid $1,200 of sales tax to the state. Requirements 1. Joumalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation Jul. 5 Accounts Receivable Sales Revenue Sales Tax Payable To record sales revenue on account and the related sales tax. Requirement 2. Journalize the transaction to record the payment of saltax to the state. Date Aug. 15 Accounts and Explanation Debit Credit 21,800 20,000 1,800 Debit Credit
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $486,000 of merchandise on account, subject to a sales tax of 5%. The cost of the goods sold was $286,740. If an amount box does not require an entry, leave it blank. b. Paid $42,780 to the state sales tax department for taxes collected. If an amount box does not require an entry, leave it blank. Check My Work ▾ Previous Next
On July 5, Bramley Company recorded sales of merchandise inventory on account, $45,000. The sales were subject to sales tax of 8%. On August 15, Bramley Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15 Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound entry for this transaction.) Accounts and Explanation Date Jul. 5 Debit Credit
on july , family company recorded merchandise inventory on account , $50,000. the sales were subject to sales tax on 5% on august 15 family company paid the sales tax owed to the state from the july 5 transaction . requirements:- (A) journalize the transaction to record the sale on july 5. ignore the cost of goods sold. (B) journalize the transaction to record the sales tax to state on august 15.
A VAT registered person engages in both VAT and VAT exempt business. During the year total sales amounted to P500,000, exclusive of the VAT. Sale of the VAT exempt business amounts toP200,000. During the quarter, the business incurred the following: Input VAT arising from repairs amounting P6,000. On the other hand, input on supplies, for common use amounted P1,200. The creditable input tax is
A company receives $696, of which $56 is for sales tax. The journal entry to record the sale would include a Select one: a. debit to Sales Tax Expense for $56. b. debit to Sales Taxes Payable for $56. C. debit to Sales Revenue for $696. d. debit to Cash for $696.
Sales tax transactions Journalize the entries to record the following selected transactions:A. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000.B. Paid $61,750 to the state sales tax department for taxes collected
A VAT registered person is engages in both VAT and VAT exempt During the year total sales amounted to P500,000, exclusive of the VAT. Sale of the VAT exempt business amounts to P200,000. During the quarter, the business incurred the following: Input VAT arising from repairs amounting P6,000. On the other hand, input on supplies, for common use amounted P1,200 The creditable input tax is:
The following are the data extracted from the books of a retailer and registered with the National Gulf Tax Agency, which deals in several items, some of whichare taxable, some of which are exempted for the month of March 2019 first purchases during the month:1 - Goods purchased in the amount of 40,000 dinars and paid tax at the rate of 5% (BD2000) 420002- goods purchased in the amount of 180000 tax exempt second obtained from sales during the month- 63000 BD with Total tax of the sale of goods subject to VAT2 - 190000 dinars obtained from the sale of tax-exempt goods required preparation of M Summarize VAT for March 2019 explaining the amount of VAT.