On January 1, 2020, the ledger of Sunland Company contains the following liability accounts. Accounts Payable $53,500
Sales Taxes Payable 7,200
Unearned Service Revenue 16,500

During January, the following selected transactions occurred.

Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
12 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.)
14 Paid state revenue department for sales taxes collected in December 2019 ($7,200).
20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty.
21 Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note.
25 Sold merchandise for cash totaling $7,884, which includes 8% sales taxes.

Required:
Journalize the January transactions.

Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.

Dr Cash 20,520

    Cr Sales revenue 19,000

    Cr Sales taxes payable 1,520

12 Performed services for customers who had made advance payments of $10,500. (Credit Service Revenue.)

Dr Unearned revenue 10,500

    Cr Service revenue 10,500

14 Paid state revenue department for sales taxes collected in December 2019 ($7,200).

Dr Sales taxes payable 7,200

    Cr Cash 7,200

20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty.

Dr Cash 48,600

    Cr Sales revenue 45,000

    Cr Sales taxes payable 3,600

*An additional entry for recording warranty liability must be made but we are not given any estimated warranty costs.

21 Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note.

Dr Cash 27,000

    Cr Notes payable 27,000

25 Sold merchandise for cash totaling $7,884, which includes 8% sales taxes.

Dr Cash 7,884

    Cr Sales revenue 7,300

    Cr Sales taxes payable 584

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

answertaxable income;