Question

Chapter 09 Homework i Saved Listed below are a few transactions and events of Piper Company. 1. Piper Company records a year-end entry for $10,000 of previously unrecorded cash sales (costing $5,000) and its sales taxes at a rate of 4%. 2. The company earned $50,000 of $125,000 previously received in advance and originally recorded as unearned services revenue. points Prepare any necessary adjusting entries at December 31 for Piper Company's year-end financial statements for each of the above separate transactions and events. (Piper has the policy of recording cash received in advance in balance sheet accounts.) eBook View transaction list Hint Journal entry worksheet < 1 2 3 Print Record the entry for cash sales and its sales taxes. References Note: Enter debits before credits. General Journal Debit Transaction 01(a) Record entry Clear entry View general journal

Answer 1

Credit Transaction 01(a) Debit $ 10,400 General Journal Cash ($10,000+$400) Sales Sales tax payable ($10,000*4%) (To record the entry for cash sales and its sales tax) $ 10,000 $ 400 01(b) $ 5,000 Cost of Goods Sold Merchandise inventory (To record cost of sales) $ 5,000 $ 50,000 Unearned service revenue Earned service revenue |(To record the unearned service revenue earned) $ 50,000