NettetSales Tax Payable increases (credit) for the 6% tax rate ($18,000 × 6%). Sierra’s tax liability is owed to the State Tax Board. Sales increases (credit) for the original … NettetPaid state treasurer's department for sales taxes collected in December 2024, $7,500. Sold 400 units of a new product on credit at $48 per unit, plus 6% sales tax. During January, the company's employees earned wages of $80,000. Withholdings related to these wages were 56,120 for FICA $5,700 for federal income tax, and $1,700 for state …

Understanding Your Sales Tax Rules and Obligations

NettetCBS determines that the returned merchandise can be resold and returns the merchandise to inventory at its original cost. The following entries occur for the sale and subsequent return. In the first entry on September 1, Cash increases (debit) and Sales increases (credit) by $37,500 (250 × $150), the sales price of the phones. Nettet18. mai 2024 · Step 1: Wage accrual. Each pay period, pay is calculated based on time cards and salary amounts and then expensed. Wages are debited to increase the expense account, and wages payable is credited ... the silk road international film festival

Payroll Journal Entries Financial Accounting - Lumen Learning

Nettet14. mai 2024 · Sales tax is a liability that your business owes to the government and that’s why the sales tax account gets credited. This is how your journal should look … NettetThe sold product has a 6% sales tax attached which amounts to $48 (8,000 x 6%). In this case, the company ABC can make a sales tax journal entry together with sales … NettetJournalize the January transactions. Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. ( Hint: Use one-third of a month for the Girard Bank note.) my tricare tol