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astraxan [27]
3 years ago
13

Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. Th

e journal entry to record the sale would include a credit to a.Sales Tax Payable for $256 b.Sales for $3,456 c.Cash for $3,200 d.Sales for $2,944
Business
1 answer:
GaryK [48]3 years ago
4 0

Answer:

B. Sales for $3,456

Explanation:

Sales can simply be defined as the activity of selling the merchandise inventory of a business at any given time.

Journal entry

Dr Account receivable $3,456

Cr Sales Revenue $3,200

Cr Sales tax payable $256

Sales revenue $3,200

Sales percentage 8%

Therefore sales tax payable = sales revenue× sales percentage

$3,200×8% = 256

$3200+ $256= $3,456

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On January 2, Chaz transfers cash of $143,400 to a newly formed corporation for 100% of the stock. In its initial year, the corp
Paha777 [63]

Answer: See explanation

Explanation:

A. Chaz has a taxable dividend of $10,755 and the corporation has a deduction of $0.

It should be noted that the dividend will be taxable once it gets to the receivers hand while the corporation will have a deduction of 0

B. The corporate payment to Chaz totals $11472. Chaz has interest of $4302 and a note repayment of $7170 of which $4302 is taxable to Chaz. The corporation has a deduction of $4302

Notes:-

Interest = $71700 × 6%

= $71700 × 0.06

= $4302

Total repayment:

= First installment + Interest

= $7170 + $4302

= $11472

5 0
3 years ago
Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction fo
Soloha48 [4]

Answer:

the numbers are missing, so I looked for a similar question:

  1. Investment in the business $17,010
  2. Borrow cash $7,620
  3. Purchase equipment $8,300
  4. Revenues earned $298,600
  5. Expenses incurred $210,900
  6. Dividends $15,000

since there is not enough room here, I used an excel spreadsheet. I assumed all sales were on cash and all expenses were also paid using cash.

Download pdf
8 0
4 years ago
What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most
oksano4ka [1.4K]

Answer: $3.38

Explanation:

Dividend Yield of a stock refers to the dividend paid by the company expressed in terms of a percentage of the current value of the company's stock.

The Dividend therefore is;

= 75 * 4.5%

= $3.375

= $3.38

5 0
4 years ago
Walt consumes strawberries and cream but only in the xed ratio of three boxes of strawber-
Tcecarenko [31]

Answer:

(d) Walt demands 12 boxes of strawberries.

Explanation:

For every 3 box of strawberries, Walt consumes 2 box of cream

=> For every 1 box of strawberry, he will consumer 2/3 box of cream

Suppose, he consumes X boxes of strawberries, then he must consume (2/3)*X boxes of cream

Cost = 10*X + 10*(2/3)*X = 200 = Income

=> 10X + 20X/3 = 200

=. 30X + 20X = 600

=> 50X = 600

=> X = 12

4 0
3 years ago
A situation (SWOT) analysis requires a firm to consider the external forces and trends that affect it. Some of these may be favo
weqwewe [10]

Answer:

A local government requires that all businesses within the city limits must recycle or be fined. EXTERNAL FACTOR NOT CONTROLLED BY THE COMPANY, THIS IS A TYPE OF GOVERNMENT REGULATION.

Explanation:

  • Shareholders are rewarded with a sizeable dividend check.  INTERNAL FACTOR CONTROLLED BY THE COMPANY.
  • A hiring freeze is put into place. Although no one is fired, no one can be hired.  INTERNAL FACTOR CONTROLLED BY THE COMPANY.
  • A goal is set to close the gap between production costs and profits.  INTERNAL FACTOR CONTROLLED BY THE COMPANY.
  • The firm buys its own fleet of trucks, so it no longer needs to hire a trucking company for distribution.  INTERNAL FACTOR CONTROLLED BY THE COMPANY.

8 0
3 years ago
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