The beginning of the year at a cost of $45,000. The machines useful estimated th

Question

The beginning of the year at a cost of $45,000. The machines useful estimated the is 10 years or 420,000 units of product with a $5,000 salvage value. During the first year, the machine produces 25,000 units of products. Compute the first year of depreciation using units of production method. =25,000/420,000. (45,000-5,0000 =2380 Lillies Flowers sells tulips for $5,000 cash on May 30. The cost of the merchandise is $3,500. The sales tax law requires Lillies to collect 5% sales tax on every dollar of merchandise sold. Record the entry for the $5,000 sale entry to record the cost of goods soldm and its applicable sales tax. Extra credit for the entry of the remittance for the sales tax. Ed's CPA Company reports their income before expense and income taxes in the amount of $3,200,000 and interest expense of 200,000. Compute the times interest earned ratio. 3,200,000 / 200,000

Explanation / Answer

Journal Entry

Debtors a/c ..............................Dr (5000+(5000*5%) 5250

To Sales 5000

To sales tax payable 250

( Being sales made and sales tax collected)

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