im working on an hst and journalizing assignment and theres a question that says sales invoice to b.enright for $825 plus taxes which is 13%, how would i journalize that ???
To journalize the sales invoice to B. Enright for $825 plus taxes, you need to record the transaction in your accounting journal using the double-entry bookkeeping system. Here's how you can journalize it step by step:
1. Identify the accounts involved in the transaction:
- Sales Revenue: Represents the amount of revenue earned from sales.
- Accounts Receivable (or B. Enright, if specified): Represents the amount owed by the customer.
- Sales Tax Payable: Represents the amount of sales tax collected from the customer.
2. Determine the amounts to be debited and credited:
- Sales Revenue should be credited for the total sales amount, which is $825.
- Accounts Receivable (or B. Enright) should be debited for the same amount as the credit ($825).
- Sales Tax Payable should be debited for the amount of tax collected. To calculate the tax, multiply the total sales amount ($825) by the tax rate (13% or 0.13). The tax amount is $825 * 0.13 = $107.25.
3. Journalize the entry:
- Date: Enter the transaction date.
- Account: Write the account name in the account column.
- Debit: Enter the amount in the debit column.
- Credit: Enter the amount in the credit column.
Your journal entry should look like this:
Date Account Debit Credit
---------------------------------------------------
[Date] Accounts Receivable $825
Sales Revenue $825
Sales Tax Payable $107.25
Remember to adjust the account names and dates according to your specific chart of accounts and the actual transaction date.
By following the steps mentioned above, you should be able to correctly journalize the sales invoice to B. Enright for $825 plus taxes.