Brief Exercise 10-3 Greenspan Supply does not segregate sales and sales taxes at

Question

Brief Exercise 10-3

Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $8,400. All sales are subject to a 5% sales tax.

Compute sales taxes payable.

Sales taxes payable

Make the entry to record sales taxes payable and sales. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Mar. 16

Brief Exercise 10-15

Suppose the Canadian National Railway Company’s (CN) total assets in a recent year were $23,100 million and its total liabilities were $14,091 million. That year, CN reported operating lease commitments for its locomotives, freight cars, and equipment totaling $780 million. If these assets had been recorded as capital leases, assume that assets and liabilities would have risen by approximately $780 million.

(a)

Calculate CN’s debt to assets ratio, first using the figures reported, and then after increasing assets and liabilities for the unrecorded operating leases. (Round answers to 0 decimal places, e.g. 62%)

Without operating leases

With operating leases

Debt to assets

Sales taxes payable

$ enter a dollar amount

Explanation / Answer

Brief Exercise 10-3 Greenspan Supply

Sales tax payable = $8400 x 5 / 105 = $400

Please post independent questions separately. Thank you.

Date Account Titles and Explanation Debit Credit Mar. 16 Accounts receivable 8400 Sales revenue 8000 Sales tax payable 400 (To record sales and sales tax payable)

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