Answer:
Journal Entry
General Ledger Dr. Cr.
Cash $7,085
Sales Tax Payable $585
Sales $6,500
Explanation:
Sales tax is the amount of tax collected by the business on the taxable sales from customers on behalf of government and pay it to government after that. Sales tax will be included in the cash received from the customer and recorded as the payable for the business.
Sales Value = $6,500
Sales Tax = 9%
Sales inclusive of Sales tax = $6,500 x 109% = $6,500 x 1.09 = $7,085
Answer: 12,000
Explanation:
Given that,
Stockholder's equity at the beginning of the year = 70,000
Stockholder's equity at the end of the year = 60,000
Dividends = 22,000
Net Income = Ending Balance + Dividends - Beginning Balance
= 60,000 + 22,000 - 70,000
= 12,000
Therefore, the net income for the year was 12,000.
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to : Purchase
<h3>What is Purchase Discount?</h3>
Purchase discount is deducted to the total purchases when computing for the net purchases. This account has a normal balance of credit and decreases the total amount of cost of goods sold.
<h3>What is Analytical procedures ?</h3>
Analytical procedures refer to study of significant ratios and past trends and investigating unusual fluctuations.
Under analytical review procedures, an auditor compares financial information of the current period with those of the previous periods, applying techniques of ratio analysis and investigating the causes of unusual fluctuations and deviations.
Therefore, we can conclude that the correct option is C.
Your question is incomplete, but most probably your full question was:
A likely analytical procedure to test the accuracy of purchase discounts would be to compute the ratio of cash discounts earned to:
a. accounts payable
b. notes payable
c. purchases
d. sales discounts
Learn more about Analytical procedures on:
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the bank which monitors,regulates amd control the financial system of the economy is known as central bank whereas commercial bank is the banker to the citizen
Answer:
The company will earn a gain of $14,000.
Explanation:
The original cost of the ells company's delivery truck was $ 56,000 and the accumulated depreciation account had a balance of $38,000, which means a provision for the $38,000 was made in case something bad happens to the truck, and it eventually did as the truck was destroyed by fire and hence the amount of $18,000 ($56,000 - $38,000) was left which was not covered by the company.
The company received $32,000 as insurance , which means the $18,000 loss would be covered here - $32,000 -$18,000 = $14,000, and also the company will gain $14,000.
