101.A company receives $435, of which $35 is for sales tax. The journal entry to record the sale would include a
adebit to Sales Tax Expense for $35.
b.debit to Sales Taxes Payable for $35.
c.debit to Sales Revenue for $435.
d.debit to Cash for $435.
102.A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to ¥420,000,000 what is the amount of the sales taxes owed to the taxing agency?
a.¥400,000,000
b.¥420,000,000
c.¥21,000,000
d.¥20,000,000
103.On January 1, 2014, Howard Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper statement of financial position presentation on December 31, 2014, is
a.Current Liabilities, $1,000,000.
b.Non-current Liabilities $1,000,000.
c.Current Liabilities, $500,000; Non-current Liabilities, $500,000.
d.Current Liabilities, $250,000; Non-current Liabilities, $750,000.
104.On January 1, 2014, Donahue Company, a calendar-year company, issued $600,000 of notes payable, of which $150,000 is due on January 1 for each of the next four years. The proper statement of financial position presentation on December 31, 2014, is
a.Current Liabilities, $600,000.
b.Non-current Liabilities $600,000.
c.Current Liabilities, $150,000; Non-current Liabilities, $450,000.
d.Current Liabilities, $450,000; Non-current Liabilities, $150,000.
105.Ed’s Bookstore has collected $750 in sales taxes during April. If sales taxes must be remitted to the government monthly, what entry will Ed's Bookstore make to show the April remittance?
a.Sales Taxes Payable....................................750
Cash750
b.Sales Tax Expense.....................................750
Cash750
c.Sales Tax Expense.....................................750
Sales Taxes Payable..........................................750
d.No entry required.
106.Layton Company does
not
ring up sales taxes separately on the cash register. Total receipts for October amounted to $52,500. If the sales tax rate is 5%, what amount must be remitted to the taxing authority for October's sales taxes?
a.$2,500
b.$2,625
c.$125
d.It cannot be determined.
107.Valerie's Salon has total receipts for the month of $24,645 including sales taxes. If the sales tax rate is 6%, what are Valerie's sales for the month?
a.$23,166.30
b.$26,123.70
c.$23,250.00
d.It cannot be determined.
108.The amount of sales tax collected by a retail store when making sales is
a.a miscellaneous revenue for the store.
b.a current liability.
c.not recorded because it is a tax paid by the customer.
d.recorded as an operating expense.
109.A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to ¥336,000,000, what is the amount of the sales taxes owed to the taxing agency?
a.¥320,000,000
b.¥336,000,000
c.¥16,800,000
d.¥16,000,000
110.The current portion of long-term debt should
a.be paid immediately.
b.be reclassified as a current liability.
c.be classified as a non-current liability.
d.not be separated from the long-term portion of debt.