Putman Company had each sales of 200, 000 (excluding taxes) for the month of Jun
ID: 2480373 • Letter: P
Question
Putman Company had each sales of 200, 000 (excluding taxes) for the month of June. Sales are subject to 8.5 percent sales tax. Prepare the entry to record the sales in June. If sales taxes must be remitted to the state government monthly, what entry will Putman make to record the June remittance? On December 1, Gilman Corporation borrowed dollar 20, 000 on a 90-day, 6 percent note. Prepare the entries to record the issuance of the note, the accrual of interest your year end, and the payment of the note.Explanation / Answer
Answer 1
a
Cash A/c Dr. $210000
To Sales A/c Cr. $200000
To Sales Tax Payable A/c Cr $10000
b Remittance of sale tax to government.
Sales Tax Payable A/c Dr. $10000
To Cash A/c Cr. $10000
Answer 2
on Dec 1
Cash A/c Dr. $20000
TO Note Payable A/c CR. $20000
On Dec31
Interest Expense A/c Dr. $100
To Interest Payable A/c CR. $100
On feb end
Notes Payable A/c Dr. $20000
Interest Payable A/c Dr. $100
Interest Expense A/c dr. $200
To cash A/c Cr. $20300
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