Assume that a grandfather clock was sold for $12,000 cash plus 3 percent sales tax. The clock had originally cost Heines $8,000. Assume Heines uses a perpetual inventory system.

1.

Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

2.repare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the sales revenue of $12,000 plus 3 percent sales tax.

Record the cost of goods sold of $8,000.

Question

Assume that a grandfather clock was sold for $12,000 cash plus 3 percent sales tax. The clock had originally cost Heines $8,000. Assume Heines uses a perpetual inventory system.

1.

Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.)

2.repare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the sales revenue of $12,000 plus 3 percent sales tax.

Record the cost of goods sold of $8,000.

Accepted Answer

The Answer is in the image, click to view ...

Question

Assume that a grandfather clock was sold for $12,000 cash plus 3 percent sales tax. The clock had originally cost Heines $8,000. Assume Heines uses

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question