Taft Corp Operates a Retail Hardware Store

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ysjd.patel Regular Joined: 12 Jan 2009 Location: United States Online Status: Offline Posts: 179	Posted: 19 Mar 2009 at 22:31 | IP Logged A state requires quarterly sales tax returns to exist filed with the sales tax bureau by the 20th day following the end of the agenda quarter.  However, the state further requires that sales taxes nerveless be remitted to the sales tax bureau by the 20th mean solar day of the month following any month such collections exceed $500.  These payments can be taken as credits on the quarterly sales tax return. Taft Corp. operates a retail hardware store.  All items are sold subject to a vi% land sales revenue enhancement, which Taft collects and records every bit sales acquirement.  The sales taxes paid by Taft are charged against sales acquirement.  Taft pays the sales taxes when they are due. Following is a monthly summary appearing in Taft'south first quarter 1989 sales revenue account:                 Debit    Credit January    $    -     $10,600 February     600        seven,420 March            -        9,540 -----    -------                 $600    $27,560 In its fiscal statements for the quarter ended March 31, 1989, Taft'southward sales revenue and sales taxes payable would exist: Ans: Sales              Sales taxes Revenue         ;  payable $26,000                 $960 Tin anyone plz explain to  get this answer?
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divyagovil1 Major Correspondent Joined: 30 Jan 2009 Location: India Online Status: Offline Posts: 1456	Posted: nineteen Mar 2009 at 22:43 | IP Logged Credit show the full sales revenue received past Taft for quarter concluded March 31,1989 Debit bear witness the sales revenue enhancement remitted to the sales tax bureau equally in Jan., sales taxation collection exceeded $500.. However, we can take this sales tax paid equally credit on our quarterly sales tax return ! Now, we simply have to calculate how much was the sales revenue and how much was the sales tax portion in the sales acquirement. This is the central hint in the question :- All items are sold field of study to a 6% state sales revenue enhancement, which Taft collects and records as sales revenue . It means that sales tax is included in sales revenue. Assume sales acquirement without sales tax = X Now, applying mathematical equation :- Ten + 6% of X = $27,560 Thus, Ten = $26,000 Then, the solution is Sales revenue = $26,000 and, sales revenue enhancement = 27560-26000= 1560 Sales revenue enhancement already paid $600 Sales tax payable =  1560-600 credit taken= $960 __________________ Divya - CO Country Passed using Becker Review : FAR - 04/11/09 - 94 BEC - 05/xxx/09 - 86 REG - 08/29/09 - 95 AUD - 11/21/09 - 92 Ideals - 2011
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ysjd.patel Regular Joined: 12 Jan 2009 Location: United States Online Status: Offline Posts: 179	Posted: xix Mar 2009 at 23:02 | IP Logged Thanx divyagovil1....:) Really appreciate your assistance.....it was really a wonderful explaination ..
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ysjd.patel Regular Joined: 12 Jan 2009 Location: United States Online Status: Offline Posts: 179	Posted: xix Mar 2009 at 23:11 | IP Logged Nevertheless, the country further requires that sales taxes collected be remitted to the sales tax bureau by the 20th mean solar day of the month post-obit whatsoever month such collections exceed $500. what does this statement exactly  mean?
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divyagovil1 Major Contributor Joined: 30 Jan 2009 Location: India Online Status: Offline Posts: 1456	Posted: xix Mar 2009 at 23:23 | IP Logged It means that if in a month, sales tax collected exceeded $500, then the sales tax collected would be remitted by Taft to sales tax agency(Govt) . This is possibly as per the sales revenue enhancement law of that specific country. For January., sales tax nerveless = $600. ($ten,600 includes $600 as per the above mathematical equation). This $600 was then remitted to sales tax agency past 20th Feb, however, shown as a divide debit then that information technology could exist adapted against the full sales tax payable for 1st quarter. Thus, Sales tax payable =  1560-600 credit taken= $960 The statement is of import as it points out to calculate the final sales revenue enhancement payable! __________________ Divya - CO Country Passed using Becker Review : FAR - 04/11/09 - 94 BEC - 05/xxx/09 - 86 REG - 08/29/09 - 95 AUD - 11/21/09 - 92 Ethics - 2011
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