During May of the current year, Grant Park Refinery sold, on credit, 1,200,000 gallons of motor fuel at $1.89 each plus Georgia sales tax of 6%. Included in the price per gallon was a $0.42 federal excise tax. All taxes collected are paid to the appropriate taxing authority at the end of the quarter.

Prepare the appropriate journal entries on May 31 and June 30.

Question

During May of the current year, Grant Park Refinery sold, on credit, 1,200,000 gallons of motor fuel at $1.89 each plus Georgia sales tax of 6%. Included in the price per gallon was a $0.42 federal excise tax. All taxes collected are paid to the appropriate taxing authority at the end of the quarter.
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Prepare the appropriate journal entries on May 31 and June 30.

Quizplus · Accepted Answer

The Answer of During May of the current year, Grant Park Refinery sold, on credit, 1,200,000 gallons of motor fuel at $1.89 each plus Georgia sales tax of 6%. Included in the price per gallon was a $0.42 federal excise tax. All taxes collected are paid to the appropriate taxing authority at the end of the quarter.
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Prepare the appropriate journal entries on May 31 and June 30.

During May of the Current Year, Grant Park Refinery Sold