Questions Example | Record the Debits and Credits in table to right. Use tables

Question

Questions Example | Record the Debits and Credits in table to right. Use tables below for GL # and Tax Rates. Record an electronic payment of $S00 to State of Michigan on Sales Tax. Process a $30,000 payment on credit line (principal only) 2 Record an invoice recelved for $1,000 from Zip Marketing on an advertisement. Shipping Department receives $50,000 in raw materials from Purchase Order 12345 Customer ABC from Michigan invoiced for $20,000 on sale of finished goods (Taxable. Note: Figure Cost of Sales as 70% of sale, Ship edw thfree- eight. Customer 123 from Ohio invoiced for $5,000 on sale of finished goods (Nontaxable). Note: Record $2,200 payment on Signature Loan ($2,000 principal&$200 interest). Figure Cost of Sales as 80% of sale. Add $200 for 6 7 Check received from Customer ABC for $15,000 Record invoice from Vendor on Purchase Order 12345 (raw materials) for $50,000 Cut check for $3,000 on payment of invoice from Vendor XYZ. Customer ABC goes bankrupt. Write off $5,000 of unpaid invoices. 10 State Ohio Michigan Tax Rate 7.25% 6.75% Posting Type Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Profit & Loss Profit & Loss GL Account # GL Account Description 1100 Cash 1200 Accounts Receivable 1310 Inventory-Raw Materials 1330 Inventory-Finished Goods 2100 Accounts Payable 2120 Credit Line 2150 Signature Loan 2291 Sales Tax Payable - Ohio 2292 Sales Tax Payable - Michigan 2333 4110Sales-Labels & Supplies 4130Freight Revenue Accrued Purchases 4520 Cost of Sales-Labels & Supplies Profit& Loss 5210Advertising Expense 5230 Bad Debt Expense 5275 Supplies Expense 8130 Profit & Loss Profit & Loss Profit & Loss Profit & Loss Interest Expense Note: All sales of finished goods recorded to Sales-Labels & Supplies

Explanation / Answer

Ref Account Title Post Ref. Debit Credit 1 Credit Line 2120 3000 Cash 1100 3000 (Payment on Credit Line) 2 Advertising Expense 5210 1000 Accounts Payable 2100 1000 (Invoice for advertising ) 3 No entry required (Raw material received) 4 Accounts Receivable 1200 21350 Sales - Labels & Supplies 4110 20000 Sales Tax Payable - Michigan 2292 1350 (Sales made to ABC) Cost of Sales - Labels & Supplies 4520 14000 Inventory - Finished Goods 1330 14000 (Cost of goods sold to ABC) 5 Accounts Receivable 1200 5200 Sales - Labels & Supplies 4110 5000 Freight Revenue 4130 200 (Sales to customer 123 ) Cost of Sales - Labels & Supplies 4520 4000 Inventory - Finished Goods 1330 4000 (Cost of goods sold to 123) 6 Signature Loan 2150 2000 Interest Expense 8130 200 Cash 1100 2200 (Payment for signature loan) 7 Cash 1100 15000 Accounts Receivable 1200 15000 (Collection from ABC) 8 Inventory - Raw Materials 1310 50000 Accounts Payable 2100 50000 (Raw material received) 9 Accounts Payable 2100 3000 Cash 1100 3000 (Payment made to vendor XYZ) 10 Bad Debt Expense 5230 5000 Accounts Receivable 1200 5000 (Amount due from ABC written off) Gross profit Date Sale Cost Amount % 1/4/2016 940 750 190 20.21% 1/12/2016 880 675 205 23.30% 1/30/2016 2300 1600 700 30.43% 2/3/2016 1000 800 200 20.00% 2/4/2016 460 325 135 29.35% 2/18/2016 700 480 220 31.43% 2/25/2016 840 720 120 14.29% 3/1/2016 1500 760 740 49.33% 3/15/2016 1200 750 450 37.50% 3/21/2016 1350 800 550 40.74% Totals 11170 7660 3510 31.42% 1 If GP = 70% for all sales what would be GP = $ $7,819 2 How many sales transactionoccurred 10 3 What is average sales dollars (11170 / 10) $1,117 4 forecast totla sales for one year (1117*365) 407705

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.