Essay
The Candy Junction operates two candy stores.Sales at the two stores in 2012 were $320,000 and $201,000; these amounts do not include sales tax.Both stores are in a state with a 5% sales tax rate.
Required:
a)What is the total amount of sales tax that the stores collected in 2012?
b)What kind of transaction is the collection of the sales tax? (asset source,asset use,asset exchange,claims exchange).
c)At the end of the year,the company remitted the sales tax to the state.What kind of transaction is the remission (payment)of the sales tax?
Correct Answer:
Verified
a)$26,050 ($320,000 ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q11: Roskos Corporation issued to Ewold Bank a
Q13: Knowles Company issued $100,000 of bonds at
Q16: On March 17,Ransom Company paid the interest
Q17: Hays began its loan transactions with Barnett
Q19: In accounting for contingent liabilities,Terrace Company determined
Q49: Which financial statements are affected by the
Q50: Long-term debt would likely be used for
Q88: Chicago Company sold merchandise to a customer
Q122: What is the effect of the recognition
Q123: How does the amortization of the principal