Bramble Corp. has $3120000 of short-term debt it expects to retire with proceeds from the sale of 89000 shares of common stock. There is no contractual agreement to retire the debt with the stock sale proceeds. If the stock is sold for $25 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?

$2225000.

$3120000.

$895000.

$0, No contractual agreement to retire the debt with stock proceeds.

Coronado Surplus made cash sales during the month of October of $390000. The sales are subject to a 7% sales tax that was also collected. Which of the following would be included in the summary journal entry to reflect the sale transactions?

Debit Accounts Receivable for $390000.

Credit Sales Taxes Payable for $25754.

Credit Sales Taxes Payable for $27300.

Credit Sales Revenue for $362483.