Ch. 9 - Current LiabilitiesWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Accounting
Ch. 2 - Transaction Analysis
Ch. 3 - Accrual Accounting Concepts
Ch. 4 - Merchandising Operations
Ch. 5 - Inventory
Ch. 6 - Internal Controls and Reporting Cash
Ch. 7 - Receivables and Investments
Ch. 8 - Long Lived Assets
Ch. 9 - Current Liabilities
Ch. 10 - Time Value of Money
Ch. 11 - Long Term Liabilities
Ch. 12 - Stockholders' Equity
Ch. 13 - Statement of Cash Flows
Ch. 14 - Financial Statement Analysis
Ch. 15 - GAAP vs IFRS
Sections
Types of Liabilities
Notes Payable
Payroll and Payroll Taxes
Sales Tax Payable
Current Portion of Long Term Debt
Contingent Liabilities
Estimated Liabilities: Warranties

Concept #1: Sales Tax Payable

Concept #2: Sales Tax Payable: Total Cash Receipts

Practice: Blue Skies Supplies does not keep separate records of revenues and sales taxes at the time of sale. The register totals for October 21 are $20,776. All sales are subject to a 6% sales tax. If all cash receipts were originally included in Sales Revenue, the journal entry to adjust for sales taxes payable would include:

Practice: Crystal Company does not segregate sales and sales taxes in its register. The register total for May 5 is $27,560, which includes a 6% sales tax. Prepare the journal entry to record the sales and related taxes.

Practice: ABC Company sold subscriptions to customers based on the following timeline: 

September 1 Sold one-year subscriptions, collecting cash of $3,600, plus sales taxes of 10%.
October 31 Paid the sales taxes to the state taxing authority.
December 31 Recorded necessary year-end adjusting entries 

Prepare journal entries for each of the events provided.