The following selected transactions relate to liabilities of Interstate Farm Implements for December of 2013. Interstate's fiscal year ends on December 31.
| Required: |
| Prepare the appropriate journal entries for these transactions. |
| 1. |
On December 15, received $16,000 from Bradley Farms toward the purchase of a $208,000 tractor to be delivered on January 6, 2014. (If no entry is required for an event, select "No journal entry required" in the first account field.)
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| Event |
General Journal |
Debit |
Credit |
| 1 |
Cash |
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Liability - Customer advance |
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| 2. |
During December, received $35,000 of refundable deposits relating to containers used to transport equipment parts. (If no entry is required for an event, select "No journal entry required" in the first account field.)
| Event |
General Journal |
Debit |
Credit |
| 1 |
Cash |
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Liability - Refundable deposits |
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| 3. |
During December, credit sales totaled $878,000. The state sales tax rate is 5% and the local sales tax rate is 2%. (This is a summary journal entry for the many individual sales transactions for the period.) (If no entry is required for an event, select "No journal entry required" in the first account field.)
| Event |
General Journal |
Debit |
Credit |
| 1 |
Accounts receivable |
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Sales taxes payable |
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