Instructor: Mrs. Amber Lecture Notes Chapter 11 ACCT 2301- Spring 2018 Try lt! 1

Question

Instructor: Mrs. Amber Lecture Notes Chapter 11 ACCT 2301- Spring 2018 Try lt! 11.1-2 Sales Tax Payable On August 10, Swanson Company rec 54,000. The orded sales of merchandise inventory on account, sales were subject to sales tax of 4%. The company uses the perpetual inventory system. On September 30, Swanson paid $500 of sales tax to the s 11.1 Journalize the transaction to record the sale on August 10. Ignore cost of goods sold. 11.2 Journalize the transaction to record the pay ment of sales tax to the state. tes Payable If cash is borrowed on a $50,000, 6-month, 12% note on September 1, how much interest expense would be incurred by December 31? Revenue 000 is collected in advance on November 1 for 3monthe

Explanation / Answer

Solution:(11.1): Following is the required journal entry:

Solution:(11.2): Following is the required journal entry:

Solution: Calculation of Interest Expense:

Interest expense = $50000*12%*(4/12) = $2,000

Date Particulars Debit ($) Credit ($) August 10 Accounts Receivable 4,160 Sales 4,000 Sales Tax payable($4000*4%) 160

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