Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 8 percent is collected on all sales.

1.Book sales, not including sales tax, for Year 1 amounted to $250,000 cash.
2.Cash sales of miscellaneous items in Year 1 were $85,000, not including tax.
3.Cost of goods sold was $190,000 for the year.
4.Paid $117,000 in operating expenses for the year.
5.Paid the sales tax collected to the state agency.

Required:

a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? Sales tax collected
b. Prepare the journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4) this journal entry is necessary only if all operating expenses were paid at the same time, if not, several journal entries for specific expenses should have been made:

Dr Operating expenses 117,000

Cr Cash 117,000

5)

Dr Sales tax payable 26,800

Cr Cash 26,800

topeadeniran2 topeadeniran2 · Answer 2 · 2021-11-16T16:36:28+01:00

The total amount of sales tax Vail Book Mart collected and paid for the year is $26800.

Based on the information given, the amount of sales tax Vail Book Mart collected and paid for the year will be:

= ($250,000 + $85,000) x 8%

= $335,000 x 8%

= $26,800

The journal entries for the transactions will be:

Dr Cash 270,000

Cr Sales revenue 250,000

Cr Sales tax payable 20,000

Dr Cash 91,800

Cr Sales revenue 85,000

Cr Sales tax payable 6,800

Dr Cost of goods sold 190,000

Cr Merchandise inventory 190,000

Dr Operating expenses 117,000

Cr Cash 117,000

Dr Sales tax payable 26,800

Cr Cash 26,800

In conclusion, the total amount of sales tax Vail Book Mart collected and paid for the year is $26800.

Read related link on:

https://brainly.com/question/18882106