ACC211 Chapter 11 – Class Exercises Mitchell NVCC – Annandale 1) Holly Company does not segregate sales and sales taxes payable at the time of sale. The register total for December 1 is $16,800. All sales are subject to a 5% sales tax. Make the journal entry to record sales taxes payable and sales. 2) On December 31, 2009, Redskin Company borrowed $100,000 from American Federal Bank, and signed a 12% note payable due in two years. Interest on the note is due at maturity. a) Prepare the journal entry to record the borrowing transaction. b) How should the note be reported on Redskin Company’s balance sheet at 12/31/2009? How should it be reported on the balance sheet at 12/31/2010? c) Prepare the adjusting entry required at 12/31/2010. d) Prepare the entry to record the payment of the note on 12/31/2011. 3) On January 1, 2011, the ledger of Harrison Company contains the following liability accounts: Note Payable $52,000 Accounts Payable 61,500 Interest Payable 520 Sales Taxes Payable
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This note was uploaded on 02/28/2011 for the course ACC 211 taught by Professor Mitchell during the Spring '11 term at Northern Virginia Community College.