Outstanding Publishing completed the following transactions during 2024:(Click the icon to view the transactions.)Journalize the transactions (explanations are not required). Round to the nearest dollar. (Record debits first, then credits. Excludeexplanations from journal entries.)Oct. 1: Sold a six-month subscription (starting on November 1), collecting cash of $270, plus sales tax of 5%. (Prepare a singlecompound entry for this transaction.)DateAccounts and ExplanationOct. 1DebitCredit More infoOct. 1Nov. 15Dec. 31Sold a six-month subscription (starting on November 1), collecting cashof $270, plus sales tax of 5%.Remitted (paid) the sales tax to the state of Tennessee.Made the necessary adjustment at year-end to record the amount ofsubscription revenue earned during the year.PrintDone-X

A journal entry is a record of an individual's thoughts, experiences, and observations that are…

Answered: Oct. 1: Sold a six-month subscription…

Oct. 1: Sold a six-month subscription (starting on November 1), collecting cash of $270, plus sales tax off compound entry for this transaction.) Date Accounts and Explanation Oct. 1 Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 3RE: Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that...

See similar textbooks

Related questions

Q: During a recent IRS audit, the revenue agent decided that the Parker family used their closely held…

A: A corporation that accumulates earnings over the necessary requirements of its operation is subject…

Q: ead ead 54,250 $352,625 rd overhead rate. Hint: Standard allocation

A: Standard overhead rate = Total overhead / standard labor hour Standard overhead rate =…

Q: A company's average total assets is $200,000, depreciation expense is $10,000, and accumulated…

A: Asset turnover ratio is the measure that helps the entity to determine the efficiency of entity in…

Q: Problem 7-19 Evaluating the Profitability of Services [LOZ, LO3, LO4J Kenosha Winter Services is a…

A: Activity rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…

Q: Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts.…

A: Allowance for doubtful debts is the contra asset account which is deducted from the account…

Q: Megan operates a housecleaning business as a sole proprietorship. She oversees a team of 10 cleaning…

A: A sole proprietorship is an unincorporated company with just one owner, who is responsible for…

Q: Yummy-Licious Ice Cream, Inc. opens its first store in Calgary in January 2021. It sells two types…

A: Hi student Since there are multiple subparts asked, we will answer only first three subparts. The…

Q: Haas Company manufactures and sells one product. The following information pertains to each of the…

A: ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…

Q: The production supervisor of the Machining Department for Hagerstown Company agreed to the following…

A: Budget is the estimation of revenue and expense prior to start the operation. To manage the working…

Q: If your taxable income is: Over- $0 11,450 43,650 112,650 182,400 357,700 But not over- $11,450…

A: IRS provides different tax filing status which a tax payer can choose from if the conditions laid…

Q: Mary Jarvis is a single individual who is working on filing her tax return for the previous year.…

A: Taxable income means the base amount on which the government or the system of income tax imposes or…

Q: Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Which inventory costing method did the client use in 2025, variable or absorption? (b) X Your answer…

A: As we can see in the image above, Gross Margin is given which is calculated by subtracting cost of…

Q: 3. Evidence is generally considered appropriate when a. it has been obtained by random selection…

A: The main purpose of the auditor is to obtain or collect sufficient and appropriate evidence (such as…

Q: Explain substantive tests of transactions and the meaning of this term? How does it apply to…

A: The correctness and completeness of financial transactions that take place within a corporation are…

Q: Right before his death from a terminal illness, Shing makes a gift of $605,000 cash to his church-a…

A: The gift received by a person is not taxable In the hand of the receiver however the person who…

Q: Jasper Company has 56% of its sales on credit and 44% for cash. All credit sales are collected in…

A: Budgeting - Budgeting is an estimation on the basis of past performance. Budgeting can be prepared…

Q: Required: 1. Calculate ending inventory and cost of goods sold for January using FIFO. 2. Calculate…

A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…

Q: Various financial figures have been provided for manufacturer Rayquaza Company. Raw Materials Inv.…

A: T accounts are a bookkeeping tool used to visualize the debits and credits of an account in a simple…

Q: Ivanhoe Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for…

A: Cash budget is the statement which is prepared to forecast the future cash receipts and cash…

Q: The condensed product-line income statement for Dish N’ Dat Company for the month of May is as…

A: Differential analysis is one of the important analysis being done in cost accounting. Under this,…

Q: Calculate the purchase price of the bond using A-2 and A-4 Tables, a financial calculator or Excel…

A: Given in the question: Bond Face Value = $1,140,000 Bond Issue Date = January 1, 2023 Bond Maturity…

Q: (4) (5) (6) Earnings per share $ Price-earnings ratio Payout ratio times % LA times %

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 640…

A: Answer:- FIFO method:- FIFO is a technique used in the computation of cost of goods sold to support…

Q: On June 5, 2023, Mabel Company purchased an oil well for $970,000. The well contains an estimated…

A: Company purchased an oil well = $970,000. Estimated production = 87,000 barrels Estimated residual…

Q: And lastly, can I get a step by step explanation of this one too? 7. On January 1, 2018, XYZ Corp.…

A: The depreciation rate under the double-declining method is computed by dividing 2 by the asset life.…

Q: In considering materiality for planning purposes, an auditor belives that misstatements aggregate…

A: The main objective of auditor evaluating whether the financial statements are presented fairly, in…

Q: Vaughn, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts,…

A: The cash budget is referred to as the budget which makes estimates of cash inflows and outflows on a…

Q: Sapphire Computer Company has been purchasing carrying cases for its portable computers at a…

A: The variable costs of production can be avoided if buying alternative is chosen. The fixed costs…

Q: o is in the 37 percent tax bracket, is the sole shareholder of Toto Inc., which manufactures…

A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Calculate the carrying amount of the accounts receivable both before and after recording the cash…

A: The money that a company is due by its customers or clients for goods or services that have been…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bond is a borrowing security issued by the company to raise funds from the market by making an…

Q: earnest saguenza owns

A: Generally a security deposit is taken from the tenant at the begining for two…

Q: Other financial data for the year ended December 31, 2025: Included in accounts receivable is…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: A copy machine cost $33,000 when new and has accumulated depreciation of $30,000. Suppose ABC…

A: Asset disposal is the removal of a long-term asset from the company’s accounting records Following…

Q: VQT Companies is the world’s leading express-distribution company. In addition to its 643 aircraft,…

A: If the amount of truck sold is more than net book value (cost - accumulated depreciation) of truck,…

Q: Silven Industries, which manufactures and sells a highly successful line of summer lotions and…

A: Decision making of purchase from outside supplier or manufacture inhouse is one of the most…

Q: Wildhorse Manufacturing Ltd. has signed a lease agreement with Blossom Leasing Inc. to lease some…

A: The term "lease" refers to a contract between two business entities under which one provides an…

Q: Mellon Bank wants to experiment by adding a robot drive through at a cost of $226,000. The robot is…

A: Saving of cost of labor $180,000 Less: Increase in maintenance costs $12,000 Net annual cash…

Q: 8. Assume you are a common shareholder evaluating the financial statements of your company. In…

A: In order to analyse the ratios we need to understand the two ratios 1.Number of days sales in…

Q: Tempo Company's fixed budget (based on sales of 18,000 units) folllows. Fixed Budget Sales (18,000…

A: Fixed costs are those costs that stay constant despite changes in production or sales, such as…

Q: Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation.…

A: Total revenue is the amount earned by the organization during the normal business activities.…

Q: Clayton Industries has the following account balances: Current assets Noncurrent assets $ 22,000…

A: Retained earnings is the amount of profits that are retained by the entity after paying off all the…

Q: To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under…

A: Notes receivable is an asset which is recorded on the balance sheet of a company. It creates a right…

Q: is thsi correct?

A: Adjusted Trial balance is a working statement which lists all the ledger account balances after any…

Q: Posa Hotels, Inc., has a sixth-night-free policy. Every sixth night a guest stays at the hotel is…

A: A journal entry is a process of recording business transactions in the books of accounts. It is a…

Q: Assume a company reported the following results: Sales Net operating income Average operating assets…

A: Profit margin is the percentage of profit earned by the entity on its sales. It helps to determine…

Q: Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply…

A: Total costs includes the costs of direct material, direct labor and manufacturing overhead. Overhead…

Q: Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to…

A: SPECIAL ORDER Untill There is any Information is Provided, There Shall be no additional Fixed…

Q: 5. The Adams Company had total credit sales for the year of $1,500,000. As of year end, but before…

A: The allowance for doubtful accounts is the contra asset and has the credit balance. It is deducted…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Outstanding Publishing completed the following transactions during 2024:
(Click the icon to view the transactions.)
Journalize the transactions (explanations are not required). Round to the nearest dollar. (Record debits first, then credits. Exclude
explanations from journal entries.)
Oct. 1: Sold a six-month subscription (starting on November 1), collecting cash of $270, plus sales tax of 5%. (Prepare a single
compound entry for this transaction.)
Date
Accounts and Explanation
Oct. 1
Debit
Credit

More info
Oct. 1
Nov. 15
Dec. 31
Sold a six-month subscription (starting on November 1), collecting cash
of $270, plus sales tax of 5%.
Remitted (paid) the sales tax to the state of Tennessee.
Made the necessary adjustment at year-end to record the amount of
subscription revenue earned during the year.
Print
Done
-
X

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1. 2. 3. 4. 5. 6. 7. search Swifty's cash register showed the following totals at the end of the day on March 17: pre-tax sales $56,000, GST $2,800, and PST $3,920. Swifty remitted $49,000 of sales taxes owing from March to the government on April 30. Swifty received its property tax bill for the calendar year for $55,200 on March 31, payable May 31. Swifty recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Swifty paid its employees for the week of August 15 on August 20. The gross pay was $83,000. The company deducted $4,128 for CPP, $1,312 for El, $6,400 for pension, and $16,020 for income tax from the employees' pay. Swifty recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837, respectively. On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions above were paid. On December 31, Swifty's legal counsel believes that the…
Publishing completed the following transactions during 2018 Oct 1: Sold a six-month subscription (starting on November 1), collecting cash of $540, plus sales tax of 8%. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation Debit Credit Oct. 1 Nov. 15: Remitted (paid) the sales tax to the state of Tennessee. Date Accounts and Explanation Debit Credit Nov. 15 Dec. 31: Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year. Date Accounts and Explanation Debit Credit Dec. 31
Required Information [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $82,500 plus sales tax of 7 percent. b. What was the total amount of sales tax paid in Year 1? Sales tax paid
Required information [The following Information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 7 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $82,500 plus sales tax of 7 percent. e. On which financial statement will the sales tax liability appear? The liability is shown on the
on June 8th Alton Co issued in 62700 8% 120 Day note payable to seller Co. Assume that the fiscal year of seller co ends june 30. using a 360 day year in your calculations, what is the amount of interest revenue recognized by seller in the following year? When required, round your answer to the nearest dollar.
Required information (The following information applies to the questions displayed below) The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month 1. Cash sales for November Year 1 were $66,000 plus sales tax of 7 percent. 2 Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $79,500 plus sales tax of 7 percent. d. What is the amount of the sales tax liability as of December 31, Year 1? Sales tar labity
Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Seller in the following year? When required, round your answer to the nearest dollar. $450 $1,469 $900 $5,397
Question text The totals from the first payroll of the year are shown below. Total Earnings FICA OASDI FICA HI FIT W/H State Tax Union Dues Net Pay $36,195.10 $2,244.10 $524.83 $6,515.00 $361.95 $500.00 $26,049.22 Journalize the entry to deposit the FICA and FIT taxes.
8.1 During month of May, UMPI, Inc. had cash sales of $243,624 and credit sales of $153,687, both of which include Maine sales tax of 5.5% that must be remitted to the state by June 15th. Note that UMPI did not segregate the sales tax from the sales when made during the month. They just record the full amount as sales revenue. Prepare the adjusting journal entry to fairly present the May 31 financial statements. 8.2 The payroll of UMPI, Inc. for May 31 is as follows: The total payroll was $150,000. None of the individual wages was greater than $132,900 (social security maximum threshold for 2019). Income taxes withheld from employees totaled $37,500 and union dues withheld was $4,000. Assume FICA tax is 7.65% on employee’s wages (6.2% Social Security & 1.45% Medicare tax). Calculate Unemployment tax - .6% FUTA and 5.4% SUTA taxes. No employees have reached the $7,000 maximum wage threshold. A. Prepare the necessary journal entries for the wages paid on May 31 Prepare the…
Hint: For taxes received journal entry, the $5,000 must come from estimated uncollectible revenues.
During the month of June, Rowling Boutiquerecorded cash sales of $233,200 and credit sales of $153,700, both of which include the 6% sales tax thatmust be remitted to the state by July 15.InstructionsPrepare the adjusting entry that should be recorded to fairly present the June 30 fi nancial statements