Could someone help me with how to do this Excise and Sales Tax...
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Could someone help me with how to do this
Excise and Sales Tax Calculations Madison Corporation initially records its sales at amounts that exclude any related excise and sales taxes. During May, Madison recorded total sales of $750,000. An analysis of May sales indicated the following: 1. Twenty percent of sales were subject to both a ten percent excise tax and a five percent sales tax. 2. Sixty percent of sales were subject only to the sales tax. 3. The balance of sales was for labor charges not subject to either excise or sales tax. Required a. Calculate the related liabilities for excise and sales taxes for May. b. Prepare the necessary journal entry at May 31, to record the monthly payment of excise tax and sales tax to the government. a. Sales Tax Liability $ Excise Tax Liability$ b. General Journal Date Description Debit Credit May 31 Excise Tax Payable Sales Tax Payable Cash To record the payment of excise and sales taxes to the government
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