Connect - another Financial Accounting, Chapter 9
1.
Dextra Computing sells merchandise for $18,000 cash on September 30 (cost of
merchandise is $10,800). The sales tax law requires Dextra to collect 2% sales tax
on every dollar of merchandise sold. Record the entry for the $18,000 sale and its
applicable sales tax. Also record the entry that shows the payment of the 2% tax on
this sale to the state government on October 15.
No Date General Journal Debit Credit
1 Sep 30 Cashselected answer correct 18,360selected answer correct not attempted
Salesselected answer correct not attempted 18,000selected answer correct
Sales taxes payableselected answer correct not attempted 360selected answer correct
2 Sep 30 Cost of goods soldselected answer correct 10,800selected answer correct not attempted
Merchandise inventoryselected answer correct not attempted 10,800selected answer correct
3 Oct 15 Sales taxes payableselected answer correct 360selected answer correct not attempted
Cashselected answer correct not attempted 360selected answer correct
-----------------------------------------------------------------------------------
2.
Ticketsales, Inc., receives $4,920,000 cash in advance ticket sales for a four-date
tour of Bon Jovi. Record the advance ticket sales on October 31. Record the
revenue earned for the first concert date of November 5, assuming it represents one-
fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and
unearned items in balance sheet accounts.
No Date General Journal Debit
1 Oct 31 Cashselected answer correct 4,920,000selected answer
correct
Unearned ticket revenueselected answer
correct not attempted
2 Nov 05 Unearned ticket revenueselected answer correct 1,230,000selected answer
correct
Earned ticket revenueselected answer correct not attempted
-----------------------------------------------------------------------------------
3.
On November 7, 2017, Mura Company borrows $190,000 cash by signing
a 90-day, 12% note payable with a face value of $190,000.9(Use 360
days a year. Do not round your intermediate calculations.)
