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Serggg [28]
4 years ago
10

The following selected transactions relate to liabilities of Interstate Farm Implements for December of 2018. Interstate’s fisca

l year ends on December 31. Required: Prepare the appropriate journal entries for these transactions. 1. On December 15, received $11,500 from Bradley Farms toward the purchase of a $149,500 tractor to be delivered on January 6, 2019. 2. During December, received $42,000 of refundable deposits relating to containers used to transport equipment parts. 3. During December, credit sales totaled $836,000. The state sales tax rate is 5% and the local sales tax rate is 2%. (This is a summary journal entry for the many individual sales transactions for the period.)
Business
1 answer:
bazaltina [42]4 years ago
6 0

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $11,500

          To  Bradley Farm $11,500

(Being Advance received from the  Bradley Farm )

2. Bank A/c Dr $42,000

         To Deposits A/c $42,000

(Being refundable deposit received)

3. Accounts Receivables A/c Dr $894,520

              To Sales Revenue A/c $836,000

              To Sales Tax Payable A/c $58,520

(Being credit sales is made including sales tax)

The sale tax payable is computed below:

= Credit sales × state sales tax rate + Credit sales ×  local sales tax rate

= $836,000 × 5% + $836,000 × 2%

= $41,800 + $16,720

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Explanation:

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4 years ago
When using process costing, _______ can be added in any department.
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Costing is often used to establish expenses for customers, distribution channels, personnel, geographical regions, product lines, processes, subsidiaries, and entire businesses. As defined by cost accounting, "a structured approach to recording and reporting measurements of the costing associated with providing services and producing things, both overall and in detail. It includes techniques for identifying, categorizing, allotting, aggregating, and reporting such costs as well as contrasting them with average costs."

One of the executive divisions of the federal government of the United States is the Department of Labor. Labor is in charge of enforcing federal laws that deal with things like wage and hour requirements, unemployment compensation, services, and even economic statistics.

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7 0
1 year ago
Now suppose instead that withdraws $400 from her checking account and uses $280 of this money to pay her federal income tax. Aft
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Answer:

$300 has been reduced from the money supply.

Explanation:

The taxes act as leakage from the circular flow of money. Unless they are spent and injected back as government spending they would be treated as a leakage that has left the circular flow.

Similar effect happens with the savings amount. A saving is a leakage and thus the remaining amount which is $20 after paying for golf clubs and taxes can also be said to have left the circular flow of income and so reducing money supply.

$100 of the original $400 is still left in the flow and money supply as it is still in the checking account after the transaction.

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