Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You MUSI show your calculations: (4 points) 15. At the end of the quarter the company remitted the sales tax withheld to the municipality, how

image text in transcribed
You MUSI show your calculations: (4 points) 15. At the end of the quarter the company remitted the sales tax withheld to the municipality, how this event will affect the accounting equation (Financial Statements-horizontal)? a) Decrease Cash and decrease Sales Tax Payable by $12,900 The cash flow will be affected by $12,900 outflow. b) Decrease Cash and decrease Sales Tax Payable by S6,186. The cash flow will be affected by $6,186 outflow. c) Decrease Cash and decrease Sales Tax Payable by $5,820. The cash flow will be affected by $5,820 outflow. YOU MUST show your calculations: HUJ company offers a six-month warranty for all its products. For the year wol the total sales were $528,000, and the estimate of warranty costs is based on the 2% of sales. During the year, the warranty costs paid were $6,100 (4 points) 16. The sales revenue for the year were registered, how this event will affect the accounting equation (Financial Statements-horizontal)? a) Decrease Cash and decrease Retained Earnings by $528,000 in the Balance Sheet. Increase Warrant Expense and decrease Net Income by $528,000 in the Income Statement. The cash flow will be affected by $528,000 outflow. b) Increase Cash and increase Retained Earnings by $528,000 in the Balance Sheet. Increase Sales Revenue and increase Net Income by $528,000 in the Income Statement. The cash flow will be affected by $528,000 inflow. c) Increase Cash and increase Retained Earnings by $528,000 in the Balance Sheet. Decrease Sales Revenue and decrease Net Income by $528,000 in the Income Statement The cash flow will be affected by $528,000 outflow. (4 points) 17. The warranty costs were registered, how this event will affect the accounting equation (Financial Statements- horizontal)? a) Decrease Cash and decrease Retained Earnings by S6,100 in the Balance Sheet. The cash flow will be affected by $6,100 outflow. b) Decrease Cash and decrease Warranty Payable by $6,100 in the Balance Sheet. Decrease Warranty Expense and decrease Net Income by 56,100 in the income Statement The cash flow will be affected by S6,100 outflow. c) Decrease Cash and decrease Warranty Payable by $6,100 in the Balance Sheet. The cash flow will be affected by $6,100 outflow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

Explain the pages in white the expert taxes

Answered: 1 week ago