1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dahasolnce [82]
3 years ago
11

Kathy's Corner Store has total cash sales for the month of $35,000 excluding sales taxes. If the sales tax rate is 6%, which jou

rnal entry is needed? (Ignore Cost of Goods Sold.)
a. debit Cash $35,000 and credit Sales Revenue $35,000
b. debit Cash $36, 050, credit Sales Revenue $35,000 and credit Sales Tax Payable $1, 050
c. debit Cash $33, 950, debit Sales Tax Receivable for $1, 050 and credit Sales Revenue for $35,000
d. debit Cash $36, 050, credit Sales Revenue $36, 050
Business
1 answer:
GaryK [48]3 years ago
6 0

Answer:

none of the answers is correct, the correct answer should be:

  • Dr Cash 37,100
  • Cr Sales Revenue 35,000
  • Cr Sales Tax Payable 2,100

Explanation:

If Kathy sold $35,000 during the month and the sales tax is 6%, then she will have collected $37,100 in cash.

$35,000 belong to her as sales revenue and $2,100 (= $35,000 x 6%) is money she owes as sales taxes.

Since cash is an asset, when it increases it must be debited.

When revenue increases, it must be credited.

Sales tax payable is a liability, when it increases it must be credited.

Dr Cash 37,100 (= 35,000 + 2,100)

Cr Sales Revenue 35,000 (net revenue)

Cr Sales Tax Payable 2,100 (= 35,000 x 6%)

You might be interested in
A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,0
NikAS [45]

Answer:

$310,500

Explanation:

The first step is to calculste the increase in account payable

= ending amount-beginning balance

= $29,000-$11,500

= $17,500

Decrease in account receivable

= $21,000-$18,000

= $3,000

Therefore the cash flow can be calculated as follows

= $290,000 + $17,500 + $3000

= $310,500

8 0
3 years ago
in setting up a client agreement, you would request a down payment to cover a. the number of people to be served. b. legal fee c
egoroff_w [7]
The correct answer should be d. the cost of groceries

Since the most correct answer would be production costs, in this case, the cost of groceries is the production cost as it is the cost of what you need for production.
3 0
3 years ago
Jasper makes a $44,000, 90-day, 9% cash loan to Clayborn Company. Jasper's entry to record the collection of the note and intere
vovikov84 [41]

Jasper's entry to record the collection of the note and interest at maturity should be:

Debit     Cash Account 44,990

Credit    Interest Income $990

Credit    Notes Receivable $43,000

The amount collected is:

Cash collected

= $44,000 Amount lend + Interest Income

And

Interest Income

= Amount lend * Interest Percent * For the days / 360

= $44,000 * 9% * 90 / 360

= $990

Now putting the interest income value in the above equation, we have:

Cash collected

= $44,000 Amount lend + $990

= $44,990

So the cash is increase by $44,990 interest income increased is by $990 and the Note receivable is at amount issued which has been decreased by $44,000.

Learn more about Journal entry here: brainly.com/question/14972126

#SPJ1

3 0
2 years ago
g The price elasticity of gasoline demand in the United States is 0.4 If the price of gasoline rises by 8 what is the expected c
Phantasy [73]

Answer: 3.2

Explanation:

The price elasticity of demand shows the change in quantity demanded of a good in response to a change in its price.

Price elasticity of demand = Change in quantity demand / Change in price

0.4 = Change in quantity demanded / 8

Change in quantity demanded = 0.4 * 8

= 3.2

8 0
3 years ago
When corruption is evident in governments the result is that
valentinak56 [21]

Answer: Industries have more difficulty opening since they will have to resort to bribes from government people.

Explanation: When corruption is very marked in a country, many people know that the way to obtain benefits is through certain bribes. In the case of industries, in order for them to open they have to resort to bribes made by government personnel to have the opportunity for their construction to take place.

8 0
3 years ago
Other questions:
  • Bobbi and Stuart are partners. The partnership capital of Bobbi is $41,400 and that of Stuart is $74,700. Bobbi sells his intere
    8·1 answer
  • The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200,000 $ 35 B 300,000 40 C 400,000 20 D 600,
    11·1 answer
  • Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product t
    14·1 answer
  • When valuing a stock using the constant-growth model, d1 represents the?
    10·1 answer
  • The two-step process of reporting includes
    5·1 answer
  • Which type of average provides the center-most score in a distribution?
    14·1 answer
  • Net exports might be a negative amount if Americans
    14·1 answer
  • If the company also has $1,000 of petty cash on hand (recorded in a separate account), what total amount should the company repo
    10·1 answer
  • Which of the following statements about theoretical capacity is BEST? A. Theoretical capacity allows adjustments for preventive
    6·1 answer
  • What was one benefit of the transcontinental railroad? it made cross-country travel times longer. it ended many risks of traveli
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!