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3. Mason Company makes sales on which an 6% sales tax is assessed. The following summary transactions were made during 2015: a. b. Cash sales
3. Mason Company makes sales on which an 6% sales tax is assessed. The following summary transactions were made during 2015: a. b. Cash sales of $900,000, plus sales taxes of 6%. Credit sales of $2,150,000. The $2,150,000 includes sales taxes but you must record them separately. Sales taxes of $213,500 were paid to the state. c. Required: Prepare journal entries to record the preceding transactions a, b and c above. (Round to the nearest whole number.) (8 pts) Ref. Debit Credit GO ON TO NEXT PAGE 4. The following events occurred for Rams Machinery during the second quarter of 2016: April Trucks needed new brakes at a cost of $750. Replaced engine on large machine at a cost of $3,500, the replacement April 15 will improve capacity May 4 A freak hurricane damages some equipment. Repairs cost $1,850 June 30 Office improvements of carpet cost $1,500, painting cost $500. Required: Prepare the journal entries for the preceding transactions. (9 pts) Date Debit Credit 3. Mason Company makes sales on which an 6% sales tax is assessed. The following summary transactions were made during 2015: a. b. Cash sales of $900,000, plus sales taxes of 6%. Credit sales of $2,150,000. The $2,150,000 includes sales taxes but you must record them separately. Sales taxes of $213,500 were paid to the state. c. Required: Prepare journal entries to record the preceding transactions a, b and c above. (Round to the nearest whole number.) (8 pts) Ref. Debit Credit GO ON TO NEXT PAGE 4. The following events occurred for Rams Machinery during the second quarter of 2016: April Trucks needed new brakes at a cost of $750. Replaced engine on large machine at a cost of $3,500, the replacement April 15 will improve capacity May 4 A freak hurricane damages some equipment. Repairs cost $1,850 June 30 Office improvements of carpet cost $1,500, painting cost $500. Required: Prepare the journal entries for the preceding transactions. (9 pts) Date Debit Credit
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