The Rebel Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The Rebel Book Store engaged in the following transactions for 2013. Sales tax of 7 percent is collected on all sales.

1. Book sales, not including sales tax, for 2013 amounted to $215,000 cash.

2. Cash sales of miscellaneous items in 2013 were $160,000, not including tax.

3. Cost of goods sold amounted to $195,000 for the year.

4. Paid $95,000 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 the Rebel Book Store collected and paid for the year?

b.

Prepare the journal entries for the above transactions. there are 5 entries

c.	What is the Rebel Book Stores net income for the year?