The Federal Tax Credits Blog

Posts Tagged ‘list of all tax credits’

Question: Accounting (Sales Taxes Payable) Missing 2 Numbers & I have All Proper Transactions Listed?

Goodwin Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $13,944. All sales are subject to a 5% sales tax. Compute sales taxes payable, and make the entry to record sales taxes payable and sales. (Round your answers to 0 decimal places. For multiple debit/credit entries, list accounts in order of magnitude.)

March 16 DEBIT CASH $13,944
………………….CREDIT SALES $13,247(incorrect!
CREDIT SALES TAXES PAYABLE $697 (incorrect!)
The only thing incorrect is the 2 numbers. What am I doing wrong?

Answer: If the register total is $13,944 and sales tax is 5%, then $13,944 must be 105% . Therefore, sales must be 100/105 x 13,944 = $13,280. Similarly, sales tax is 5/105 x 13,944 = $664. Alternatively, you could work out sales tax by 13,944 – 13,280 = $664.

To Sell a Home Right Now, You Have to Be Competitive From the Start

In this July 15, 2010 photo, a “For Sale,” sign is displayed outside a home in Springfield, Ill. Since the tax credit deadline passed at the end of April, housing has started to falter.

Credit Card Trickery! Don’t get caught in the traps, check your statements!