Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales Tax Collected Net Income Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6

image text in transcribed

Sales Tax Collected

Net Income

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail engaged in the following transactions for 2018. Sales tax of 6 percent is collected on all sales. 1. Book sales, not including sales tax, for 2018 amounted to $271,000 cash. 2. Cash sales of miscellaneous items in 2018 were $147,000, not including tax. 3. Cost of goods sold was $210,000 for the year. 4. Paid $129,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. What is the Vail Book Mart's net income for the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Your Human Resources Department A Step By Step Guide

Authors: John H. McConnell

1st Edition

0814474675, 978-0814474679

More Books

Students also viewed these Accounting questions