Question
Fulton Corporation initially records its sales at amounts that exclude any related excise and sales taxes. During June, Fulton recorded total sales of $600,000. An
Fulton Corporation initially records its sales at amounts that exclude any related excise and sales taxes. During June, Fulton recorded total sales of $600,000. An analysis of June sales indicated the following:
1. 30% of sales were subject to both a 10% excise tax and a 6% sales tax.
2. 50% of sales were subject only to the sales tax.
3. The balance of sales was for labor charges not subject to either excise or sales tax.
Required
a. Calculate the related liabilities for excise and sales taxes for June.
b. Prepare the necessary journal entry at June 30 to record the monthly payment of excise tax and sales tax to the government.
*Can you please help me find the sales tax liability? (part of question A)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started