Question

Bridgeport Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 Is $9,180. All sales are subject to a 8% sales tax Compute sales taxes payable. Sales taxes payable $ Prepare a tabular summary to record sales taxes payable and sales. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, pla particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Stockholders' Equity Retained Earnings = Sales Taxes Payable + Common Stock + Cash Revenue Expense Dividend Mar. 16 Sales revenue

Answer 1

Answer

• Sales + Sales tax Payable = $ 9180
• Sales = $ 9180 / 108% = $ 8,500
• Sales Tax Payable
  = $ 8500 x 8% = $ 680
  OR
  = $ 9180 – 8500 = $ 680 Answer
• Equation

Cash	Sales Tax Payable	Common Stock	Revenue	Expenses	Dividends
$9,180	$680		$8,500