Question

The following selected transactions relate to liabilities of Chicago Glass Corporation for 2018. Chicago's fiscal year ends on December 31. 1. On January 15, Chicago received $6,200 from Henry Construction toward the purchase of $58,000 of plate glass to be delivered on February 6 2. On February 3, Chicago received $5,900 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 $620,000. 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

Answer 1

Date	Particular	Debit	Credit
1/15/18	Cash	$6,200
	... Advance from customer - Liability		$6,200
	(Advance received)
2/03/18	Cash	$5,900
	... Refundable deposit - Liability		$5,900
	(Received refundable deposit)
2/06/18	Cash	$51,800
	Advance from customer	$6,200
	... Sales		$58,000
	(Delivered goods and balance received)
3/31/18	Accounts Receivabe	$657,200
	... Sales Revenue		$620,000
	... Sales Tax payable (6%*$620,000)		$37,200
	(Record Credit sales and sales tax)