Consider the following transactions of Sapphire Software: Mar. 31 Recorded cash sales of $130,000, plus sales tax of 8% collected for the state of New Jersey. Apr. 6 Sent March sales tax to the state. Journalize the transactions for the company. Ignore cost of goods sold.

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Business

Aaron Henderson

10 October, 21:32

Consider the following transactions of Sapphire Software: Mar. 31 Recorded cash sales of $130,000, plus sales tax of 8% collected for the state of New Jersey. Apr. 6 Sent March sales tax to the state. Journalize the transactions for the company. Ignore cost of goods sold.

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Jaylee Lewis · Answer 1

The journal entries are shown below:

1. Cash A/c Dr $140,400

To Sales A/c $130,000

To Sales tax payable A/c $10,400 ($130,000 * 8%)

(Being sales with sales tax are recorded)

2. Sales tax payable A/c Dr $10,400

To Cash A/c $10,400

(Being the cash is paid for sales tax)