Cantrell Company is required by law to collect and send sales taxes to the state. If Cantrell has $8,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?
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- Find the last date the cash amount is available and the date on which the net amount is due. Invoice date= April 14 Terms 2/10 , n/30 Date goods received= April 16Which of the following procedures will best detect the theft of valuable items froman inventory that consists of hundreds of different items selling for $1 to $10 and afew items selling for hundreds of dollars?(1) Maintain a perpetual inventory master file of only the more valuable items withfrequent periodic verification of the validity of the perpetuals.(2) Have an independent CPA firm prepare an internal control report on the effectiveness of the administrative and accounting controls over inventory.(3) Have separate warehouse space for the more valuable items with sequentiallynumbered tags.(4) Require an authorized officer’s signature on all requisitions for the more valuableitems.An auditor’s principal objective in analyzing repairs and maintenance expenseaccounts is to(1) determine that all obsolete property, plant, and equipment assets were writtenoff before the year-end.(2) verify that all recorded property, plant, and equipment assets actually exist.(3) discover expenditures that were expensed but should have been capitalized.(4) identify property, plant, and equipment assets that cannot be repaired andshould be written off.
- OA OB ts is CORRECT about a Business Income Coverage Form? It must be written on a Special Form It provides coverage for losses that occur up to 30 days after the policy expires. It provides coverage for income interruption at any location owned by the insured. It provides coverage for income interruption from physical damage only at the location describeJames sold his home for $379,000. If the real estate commission was 5.5%, how much commission did he have to pay? O $20,845 to the listing broker. O $10,422.50 to the listing broker and $10,422.50 to the selling broker. O $45.845 to the listing agent. O $20.845 to the buyer's broker.The assistant controller for the New England Region, Jack Isner, has been a close friend of the New Haven store manager for over 20 years. When Isner saw the segmented income statement [as prepared in requirement (1)], he realized that the New Haven store manager had really gone overboard on advertising expenditures. To make his friend look better to the regional management, he reclassified $50,000 of the advertising expenditures as miscellaneous expenses, and buried them in rent and other costs. Comment on the ethical issues in the assistant controller’s actions.
- Angie needed a new refrigerator after her old one stopped working and couldn’t be repaired. At the appliance store, she ended getting a new refrigerator plus a new stove and dishwasher because the sales associate showed her that by buying all three, should could save money that she could save not buying any of the items separately. The store used what kind of adjustment to the base price? . Quantity discounting b. Rebates c. Bundling d. Financing4. Astore is currently offering a 60% discount on all items purchased. Your cashier is trying to convince you to open a store credit card and says to you, "In addition to the 60% discount you are receiving for purchasing these items on sale today, you will get an additional 20% off for opening a credit card account. That means you are getting 105% off!" %3D a. What is the mistaken assumption here? b. Why is that assumption incorrect? c. If you did truly have 80% discount, explain what should happen when you go to the counter to buy $500 worth of items? show calculation d. If you got your 60% discount and opened up the card for an additional 20%, what is the actual % discount you would receive? show calculation e. Is it better to apply the 60% discount first or the 20% discount first?_show calculationIncome taxes have the effect of Select one : a decreasing the cost of capital for the firm. B. None of these c. decreasing the cost of debt. D. increasing the cost of debt
- For each of the following, journalize the necessary adjusting entry: (a) A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming thatAccording to the Real Estate Settlement Procedures Act (RESPA), which of the following information is required for a completed application for an extension of credit? A) A bank statement B) The purchase contract C) The borrower's date of birth D) The mortgage loan amount soughtA mortgage loan originator wants to split her commistions earned for originating a loan with real estate agant. According to Regulation X, what percentage of her commissions are permitted to be paid to the real astate agent? A ) 0% B) 20% C) 50% D) As much as she would like to give