91. Franco Company credits its Sales Revenue account for the sales price and the sales tax collected on sales. If the sales tax rate is 9% and the balance in the Sales Revenue account amounted to €465,000, what is the amount of the sales taxes owed to the taxing authority (rounded to the nearest €)?
a.€51,667.
b.€42,660.
c.€41,850.
d.€38,395.
92. Monique's Boutique has total receipts for the month of May of €30,250 including sales taxes. If the sales tax rate is 10%, what amount of sales revenue did the boutique earn in May (rounded to the nearest €)?
a.€33,275.
b.€30,250.
c.€27,500.
d.Cannot be determined from the information given.
93. Ski Quarterly typically sells subscriptions on an annual basis, and publishes four times a year in January, April, July and October. The magazine sells 70,000 subscriptions in January at CHF20 each.
What entry is made in January to record the sale of the subscriptions?
a.Accounts Receivable...................................1,400,000
Subscription Revenue........................................1,400,000
b.Cash...........................................1,400,000
Unearned Subscription Revenue................................1,400,000
c.Accounts Receivable...................................1,400,000
Unearned Subscription Revenue................................1,400,000
d.Prepaid Subscriptions..................................1,400,000
Cash1,400,000
94. Ski Quarterly typically sells subscriptions on an annual basis, and publishes four times a year in January, April, July and October. The magazine sells 70,000 subscriptions in January at CHF20 each.
If Ski Quarterly publishes a quarterly financial statement at March 31, the adjusting journal entry to recognize revenue will include
a.a debit to Cash for CHF466,667.
b.a debit to Subscription Revenue for CHF466,667
c.a debit to Unearned Subscription Revenue for CHF350,000.
d.a credit to Prepaid Subscriptions for CHF350,000.
95. In what order are current liabilities typically listed on the statement of financial position?
a.In order of the dates they become due.
b.In order of increasing liquidity.
c.In order of decreasing liquidity.
d.Notes Payable first followed by Accounts Payable, then in order of magnitude.
96. Sales taxes collected by a retailer are recorded by
a.crediting Sales Tax Revenue.
b.debiting Sales Tax Expense.
c.crediting Sales Taxes Payable.
d.debiting Sales Taxes Payable.
97. Unearned Rent Revenue is
a.a contra-account to Rent Revenue.
b.a revenue account.
c.reported as a current liability.
d.debited when rent is received in advance.
98. Crawford Company has total proceeds (before segregation of sales taxes) from sales of$7,950. If the sales tax is 6%, the amount to be credited to Sales Revenue is:
a.$7,950.
b.$7,473.
c.$8,427.
d.$7,500.
99. Reliable Insurance Company collected a premium of $24,000 for a 1-year insurance policy on May 1. What amount should Reliable report as a current liability for Unearned Service Revenue at December 31?
a.$0.
b.$8,000.
c.$16,000.
d.$24,000.
100.A company receives $176, of which $16 is for sales tax. The journal entry to record the sale would include a
a.debit to Sales Tax Expense for $16.
b.credit to Sales Taxes Payable for $16.
c.debit to Sales Revenue for $176.
d.debit to Cash for $160.