Wiset Company completes the following transactions during April, its first month of operations. A tax rate of
Question:
Wiset Company completes the following transactions during April, its first month of operations. A tax rate of 8% applies to all sales.
Apr.
3 Sold \($4,000\) of merchandise on credit to Page Alistair, Invoice No. 760.
5 Sold \($8,000\) of merchandise on credit to Paula Kohr, Invoice No. 761.
11 Sold \($10,500\) of merchandise on credit to Nic Nelson, Invoice No. 762.
13 Sold \($5,100\) of merchandise on credit to Page Alistair, Invoice No. 763.
27 Sold \($3,170\) of merchandise on credit to Paula Kohr, Invoice No. 764.
27 Sold \($6,700\) of merchandise on credit to Nic Nelson, Invoice No. 765.
Required
1. Prepare a sales journal like that in Exhibit 11.6. Number the sales journal page as page 3. Enter the transactions in the sales journal.
2. Open the following general ledger accounts: Accounts Receivable, Sales Tax Payable, and Sales.
Also open accounts receivable subsidiary ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson. Post the transactions to the subsidiary ledger accounts. Prepare the month-end postings to the general ledger accounts.
Step by Step Answer:
College Accounting Ch 1-14
ISBN: 9780073346892
1st Edition
Authors: John Wild, Vernon Richardson, Ken Shaw