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I actually saw a previous a question on here that was previously

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asked and I paid for...
I actually saw a previous a question on here that was previously asked and I paid for the answer, but when I got on there it had been removed. Is there any way you can answer it for me?
Submitted: 6 years ago.Category: Homework
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Answered in 25 minutes by:
9/20/2011
Tutor: Neo, Tutor replied 6 years ago
Neo
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Category: Homework
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Experience: BS Accounting
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Thank you for requesting me.

Are you referring the question above ?

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Customer reply replied 6 years ago
Yes I am referring to that question.

A state requires ‘‘large’’ merchants (i.e., those with sales over a specified dollar amount) to report and remit

their sales taxes within fifteen days of the end of each month. It requires ‘‘small’’ merchants to report and remit

their taxes within fifteen days of the end of each quarter. In January 2012, large merchants remitted sales taxes

of $400 million owing to sales of December 2011. In February 2012, they remitted $280 million of sales taxes

owing to sales of January 2012. In January small merchants remitted sales taxes of $150 million owing to sales of the

fourth quarter of 2011.

1. Prepare an appropriate journal entry to indicate the impact of the transactions on the state’s fund financial statements for the year ending December 31, 2011.

2. Suppose, instead, that 10 percent of the taxes received by the state were collected on behalf of a city within

the state. It is the policy of the state to remit the taxes to the city 30 days after it receives them. Prepare an

appropriate journal entry to indicate the impact of the transactions on the city’s fund financial statements for

the year ending December 31, 2011.

Tutor: Neo, Tutor replied 6 years ago
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