Answer:
Cash 21,492 debit
Sales Revenue 19,900 credit
Sales tax payable 1,592 credit
Unearned Service Revenue 10,000 debit
Service Revenue 10,000 credit
Sales tax payable 7,100 debit
Cash 7,100 credit
Accounts Receivables 48,600 debit
Sales Revenues 45,000 credit
Sales tax payable 3,600 credit
Cash 29,250 debit
Notes Payables 29,250 credit
Cash 12,744 debit
Sales Revenues 11,800 credit
Sales tax payable 944 credit
interest expense 156 debit
interest payable 156 credit
warranty expense 340.2 debit
warrnaty liability 340.2 credit
Explanation:
21,492 / (1 + 0.08) = 19,900 sales revenue
21,492 - 19,900 = 1,592 sales tax
900 x 50 = 45,000
45,000 x 0.08 = 3,600
12,744 / 1.08 = 11,800
12,744 - 11,800 = 944
interest on the note:
29,250 x 0.08 x 6days / 90 days = 156
warranty liability:
48,600 x 7% expected warranty cost = 340.2
