Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 7 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $274,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $149,000, not including tax. 3. Cost of goods sold was $211,000 for the year. 4. Paid $130,000 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. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart's net income for the year?

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 7 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $274,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $149,000, not including tax. 3. Cost of goods sold was $211,000 for the year. 4. Paid $130,000 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. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart's net income for the year?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 6 percent is collected on all sales. 1. Book sales, not including sales tax, for year 1 amounted to $275,000 cash. 2. Cash sales of miscellaneous items in year 1 were $149,000, not including sales tax. 3. Cost of goods sold was $210,000 for the year. 4. Paid $128,000 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. Prepare the journal entries for the preceding transactions C. What is Vali Book Mart's net income for the year?
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. Vail engaged in the following transactions during the year. Sales tax of 7 percent is collected on all sales. 1. Book sales, not including sales tax, for the year amounted to $275,000 cash. 2. Cash sales of miscellaneous items for the year were $146,000, not including tax. 3. Cost of goods sold was $211,000 for the year. 4. Paid $130,000 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? a. Sales tax collected b. Net income
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. Book sales, not including sales tax, for Year 1 amounted to $271,000 cash. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Cost of goods sold was $209,000 for the year. Paid $128,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Requireda. What is the total amount of sales tax Vail Book Mart collected and paid for the year?b. Prepare the journal entries for the preceding transactions. 1.Book sales, not including sales tax, for Year 1 amounted to $271,000 cash. Record the transaction. 2.Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Record the transaction. 3.Cost of goods sold was $209,000 for the year. Record the transaction. 4.Paid $128,000 in operating…
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 6 percent is collected on all sales. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. Cash sales of miscellaneous items in Year 1 were $151,000, not including tax. Cost of gods sold was $211,000 for the year. Paid $130,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Required What is the total amount of sales tax Vail Book Mart collected and paid for the year? Prepare the journal entries for the preceding transactions. What is Vail Book Mart's net income for the year?
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail engaged in the following transactions during the year. Sales tax of 8 percent is collected on all sales. Book sales, not including sales tax, for the year amounted to $278,000 cash. Cash sales of miscellaneous items for the year were $150,000, not including tax. Cost of goods sold was $208,000 for the year. Paid $132,000 in operating expenses for the year. Paid the sales tax collected to the state agency. What is the total amount of sales tax Vail Book Mart collected and paid for the year? What is the Vail Book Mart’s net income for the year?
Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail engaged in the following transactions during the year. Sales tax of 8 percent is collected on all sales. Book sales, not including sales tax, for the year amounted to $250,000 cash. Cash sales of miscellaneous items for the year were $85,000, not including tax. Cost of goods sold was $190,000 for the year. Paid $117,000 in operating expenses for the year. Paid the sales tax collected to the state agency. Required What is the total amount of sales tax Vail Book Mart collected and paid for the year? What is the Vail Book Mart’s net income for the year?
Subject: accounting 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. Book sales, not including sales tax, for Year 1 amounted to $250,000 cash. Cash sales of miscellaneous items in Year 1 were $85,000, not including tax. Cost of goods sold was $190,000 for the year. Paid $117,000 in operating expenses for the year. 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. Prepare the journal entries for the preceding transactions. c. What is Vail Book Mart’s net income for the year?
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