Mauldin Company makes sales on which a 5% sales tax is assessed. The following summary transactions were made during 2016:

1.	Sales for cash of $1,665,400, excluding sales taxes
2.	Sales on credit of $2,820,500, excluding sales taxes
3.	Sales taxes of $168,220 were paid to the state government during 2016

	Required:
1.	Prepare journal entries to record the preceding transactions.
2.	Show how the unpaid sales taxes would be reported on Mauldins December 31, 2016, balance sheet.

CHART OF ACCOUNTS

Mauldin Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
251	Sales Taxes Payable
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Prepare the necessary journal entries to record:

	1. the sales and related sales tax due on the companys cash sales
	2. the sales and related sales tax due on the companys credit sales
	3. the payment of sales tax
	Additional Instructions

PAGE 16

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8

Complete Maudlin Companys partial balance sheet at December 31, 2016. Additional Instructions

Mauldin Company

Partial Balance Sheet

December 31, 2016

1	Current Liabilities:
2