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I need help with questions B and C. journal entry questions are questions 1-5. Thank you for the help. Vail Book Mart sells books and
I need help with questions B and C. journal entry questions are questions 1-5. Thank you for the help.
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $272,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. 3. Cost of goods sold was $209,000 for the year. 4. Paid $129,000 in operating expenses for the year. 5. Poid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vall Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vall Book Mart's net income for the year? Complete this question by entering your answers in the tabs below. Prepare the joumal entries for the preceding transactions. (If no entry is requifed for a transaction/event, select 'No journal eniry, required" in the first occount feld.) Step by Step Solution
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