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Listed below are a few transactions and events of Yacht Company. Yacht Company r

ID: 2426320 • Letter: L

Question

Listed below are a few transactions and events of Yacht Company.   

Yacht Company records an adjusting entry for $560,000 of previously unrecorded cash sales (costing $280,000) and its sales taxes at a rate of 6%.

  

Prepare any necessary adjusting entries at December 31, 2011, for Yacht Company’s year-end financial statements for each of the above separate transactions and events. (Omit the "$" sign in your response.)

  

1.

Yacht Company records an adjusting entry for $560,000 of previously unrecorded cash sales (costing $280,000) and its sales taxes at a rate of 6%.

2. The company earned $112,000 of $280,000 previously received in advance for services.

Explanation / Answer

Date General Journal Debit Credit Dec 31' 2011 Customer A/c 560000 To Cash 543200 To Sales Tax Payable 16800

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