Question

The following selected transactions relate to liabilities of Chicago Glass Corporation for 2021. Chicago's fiscal year ends on December 1. On January 15, Chicago received $6,000 from Henry Construction toward the purchase of $56,000 of plate glass to be delivered on February 6. 2. On February 3, Chicago received $5,700 of refundable deposits relating to containers used to transport glass components. 3. On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price. 4. First quarter credit sales totaled $600,000. The state sales tax rate is 4% and the local sales tax rate is 2% Required: Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 On January 15, Chicago received $6,000 from Henry Construction toward the purchase of $56,000 of plate glass to be delivered on February 6. Note: Enter debits before credits General Journal 01/15/2021

Answer 1

Answer :-

Journal entries are as follows :-

Date	General Journal	Debit	Credit
15/1/2021	Cash A/c Dr.	$6000
	To Liability- Advance from customer		$6000
	(To record Chicago received $6000 from Henry construction towards purchase of plate glass)
3/2/2021	Cash A/c Dr.	$5700
	To refundable deposit		$5700
	(To record Chicago received $ 5700 of refundable deposit relating to containers used to transport glass component)
6/2/2021	Cash A/c Dr.	$50000
	Liability - Advance from customer A/c. Dr.	$6000
	To sales		$560,00
	(To record Chicago delivered the plate glass to Henry construction and received the balance of purchase price)
31/3/2021	Account Receivable A/c Dr.	$636000
	To Sales		$600000
	To Tax Payable ($600000 × 6%)		$36000
	(To record Credit sales and tax payable)
	Note:- The state sales tax rate is 4% and local sales tax rate is 2% Therefore ,Total tax rate is 6%