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miskamm [114]
3 years ago
9

Listed below are selected transactions of Sage Department Store for the current year ending December 31.

Business
1 answer:
GenaCL600 [577]3 years ago
3 0

Answer:

Answer is explained in the explanation section below.

Explanation:

We are asked to prepare the journal entries:

Following are the prepared journal entries necessary to record the transactions.

S.No.        Account Titles and Explanation           Debit           Credit

1.                 Cash                                                      $520

                   Due from Customer                                                  $520

2.                Cash                                                     $823,200

                   Sales ( $823,200/105%)                                           $784000

                   Sales Tax Payable ($784000 x 5%)                        $39200

3.                 Truck ( $115,700 x 105%)                    $121485          

                   Cash                                                                          $121485

4.                 Land Improvements                           $90,600  

                   Asset Retirement Obligation                                   $90600    

Above are the required journal entries for this question.              

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