gibrone ACC291T

Question # 00792055 Posted By: Hunter437 Updated on: 01/30/2021 02:04 PM Due on: 03/23/2021
Subject Accounting Topic Accounting Tutorials:
Question
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Question 1

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales: 

  

DATE

 

TRANSACTIONS

 

2019

 

 

May

 

1

 

Sold merchandise on account to Bill Gomez; issued Sales Slip   1015 for $1,200 plus 8 percent sales tax, terms n/30.

 

 

15

 

Recorded cash sales, $3,200 plus 8 percent sales tax.

 

 

31

 

Received payment on account due from Bill Gomez for the   sale on May 1.

ANSWER

  • Sold merchandise on account to Bill Gomez; issued Sales      Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.

  

      

Date

 

General      Journal

 

Debit

 

Credit

 

May 01, 2019

 

Accounts receivable/Bill Gomez

 

1,296

  

Sales

 

1,200

  

Sales tax payable

 

96

         

  • Recorded cash sales, $3,200 plus 8 percent sales tax.

  

      

Date

 

General      Journal

 

Debit

 

Credit

 

May 15, 2019

 

Cash

 

3,456

  

Sales

 

3,200

  

Sales tax payable

 

256

         

  • Received payment on account due from Bill Gomez for the      sale on May 1.

  

      

Date

 

General      Journal

 

Debit

 

Credit

 

May 31, 2019

 

Cash

 

1,296

  

Accounts receivable/Bill Gomez

 

1,296

Question 2

A wholesale business sells goods with a list price of $980 and a trade discount of 25 percent. The net sales price is

Multiple Choice

$245.00.

$735.00.

$980.00.

$1,005.00.

Question 3

Hour Place Clock Shop sold a grandfather clock for $2,450 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for

Multiple Choice

$2,450.00.

$2,229.50.

$2,670.50.

$2,441.00.

Question 4

If Lacy's Department Store charges 8 percent sales tax, the amount of sales tax collected on a $275 sale would be

Multiple Choice

$22.00.

$220.00.

$34.38.

$3.44.

Question 5

Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?
 

  1. List price of $620 and trade discount of 40 percent.
  2. List price of $720 and trade discount of 30 percent.
  3. List price of $300 and trade discount of 20 percent.

ANSWER

1. $372

2. $504

3. $240

Question 6

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):
 

  

DATE

 

TRANSACTIONS

 

2019

 

 

Feb.

 

2

 

Sold merchandise for cash totaling $3,400 to customers   using bank credit cards. Record the 21 percent discount on credit card sales   at time of sale.

 

 

15

 

Sold merchandise totaling $2,900 to customers using   American Express.

 

 

20

 

Received amount due from American Express, less their 22   percent discount, for sales made by customers using American Express on   February 15.

ANSWER

  • Sold merchandise for cash totaling $3,400 to customers      using bank credit cards. Record the 21 percent discount on credit card      sales at time of sale.

  

      

Date

 

General      Journal

 

Debit

 

Credit

 

Feb 02, 2019

 

Cash

 

2,900.88

  

Credit card expense

 

771.12

  

Sales

 

3,400.00

  

Sales tax payable

 

272.00

  • Sold merchandise totaling $2,900 to customers using      American Express.

  

      

Date

 

General      Journal

 

Debit

 

Credit

 

Feb 15, 2019

 

Accounts receivable/American     Express

 

3,132.00

  

Sales

 

2,900.00

  

Sales tax payable

 

232.00

  • Received amount due from American Express, less their      22 percent discount, for sales made by customers using American Express on      February 15.

  

      

Date

 

General      Journal

 

Debit

 

Credit

 

Feb 20, 2019

 

Cash

 

2,442.96

  

Credit card expense

 

689.04

  

Accounts receivable/American     Express

 

3,132.00

General Journal

  

No

 

Date

 

General   Journal

 

Debit

 

Credit

 

1

 

Feb 02, 2019

 

Cash

 

2,900.88

   

Credit card expense

 

771.12

   

Sales

 

3,400.00

   

Sales tax payable

 

272.00

        

2

 

Feb 15, 2019

 

Accounts receivable/American   Express

 

3,132.00

   

Sales

 

2,900.00

   

Sales tax payable

 

232.00

        

3

 

Feb 20, 2019

 

Cash

 

2,442.96

   

Credit card expense

 

689.04

   

Accounts receivable/American   Express

 

3,132.00

Question 7

If a firm had sales of $44,000 during a period and sales returns and allowances of $3,400, its net sales were

Multiple Choice

$47,400.

$44,000.

$40,600.

$3,400.

Question 8

Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.

Assume the following account balances at January 1, 2019:
 

  

 

Accounts Receivable (control account)

 

$

 

8,160

 

 

Accounts Receivable—John Gibrone

 

 

5,000

 

 

Accounts Receivable—Jim Garcia

 

 

2,120

 

 

Accounts Receivable—June Lin

 

 

1,040

 

       

  

GENERAL   JOURNAL

 

 

DATE

 

DESCRIPTION

 

POST.
  REF.

 

 

DEBIT

 

 

CREDIT

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Jan.

 

8

 

Cash

 

 

 

 

500

 

 

 

 

 

 

 

 

 

Accounts Receivable/John Gibrone

 

 

 

 

 

 

 

 

500

 

 

 

 

 

Received partial payment on

 

 

 

 

 

 

 

 

 

 

 

 

 

account from John Gibrone

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 

Sales Returns and Allowances

 

 

 

 

300

 

 

 

 

 

 

 

 

 

Sales Tax Payable

 

 

 

 

24

 

 

 

 

 

 

 

 

 

Accounts Receivable/Jim Garcia

 

 

 

 

 

 

 

 

324

 

 

 

 

 

Accept return of defective

 

 

 

 

 

 

 

 

 

 

 

 

 

merchandise, Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum 121; original sale

 

 

 

 

 

 

 

 

 

 

 

 

 

made on Sales Slip 11102 of

 

 

 

 

 

 

 

 

 

 

 

 

 

December 27, 2018

 

 

 

 

 

 

 

 

 

 

       

  1. Prepare a schedule of accounts receivable for Calderone      Company at January 31, 2019.
  2. Should the total of your accounts receivable schedule      agree with the balance of the Accounts Receivable account in the general      ledger at January 31, 2019?

ANSWER

Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.

  

     

CALDERONE COMPANY

 

Schedule of Accounts Receivable

 

January 31,2019

 

John Gibrone

 

$4,500

 

Jim Garcia

 

1,796

 

June Lin

 

1,040

 

Total

 

$7,336

Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

       

  

     

Total of your accounts     receivable schedule agrees with the balance of the Accounts Receivable     account

 

Yes

Question 9

On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $5,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

Multiple Choice

$5,152

$6,048

$5,600

$5,592

Question 10

Kay Sadia sold merchandise for $9,000 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:

Multiple Choice

$9,720.00.

$8,460.00.

$9,000.00.

$8,994.00.

  

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