Answer each question independently.

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Requirement 1. A restaurant made cash sales of

$5,000

subject to a

5%

sales tax. Record the sales and the related sales tax. Also record the payment of the tax to the state. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Begin by preparing a compound journal entry to record the sales and the related sales tax.

Date			Accounts and Explanations	Debit	Credit

Requirements

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1.	A restaurant made cash sales of $5,000 subject to a 5% sales tax. Record the sales and the related sales tax. Also record the payment of the tax to the state.
2.	On October 1, 2024, Audey Company purchased equipment at a cost of $60,000, signing a nine-month, 6% note payable for that amount. Record the October 1 purchase. Also record the adjusting entry needed on December 31, 2024, and payment of the note plus interest at maturity on July 1, 2025.
3.	How does a contingent liability differ from a known liability? When would a contingent liability be journalized?