Part one: Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks....
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Accounting
Part one:
Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $18,000 cash plus 3 percent sales tax. The clock had originally cost GCI $14,000. Show the accounting equation effects and prepare the journal entries related to this transaction. Assume GCI uses a perpetual inventory system.
Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.)
Part two:
Prepare the journal entries related for the above transactions-
1: Record the sales revenue of $18,000 plus 3 percent sales tax.
2:Record the cost of goods sold of $14,000.
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