Question

Michael’s music is a store that buys and sells musical instruments in Ontario where the HST rate is 13% Michael’s music uses perpetual inventory system, and the earnings approach to revenue recognition. Sold one omega trumpet to regional band on account for an invoice price of $4,600 before applicable taxes. The trumpet had cost Michael’s Music $2,700. prepare the journal entries to record the Michael’s music transactions

Name: michaels music is a store that buys and sells musical instruments in ontario where the hst rate is 13 michaels music uses perpetual inventory system and the earnings approach to revenue recognition so
Uploaded: 2024-09-17T00:51:32-08:00
Duration: 1 min 47 s
Channel: Penny Riley
Description: michaels music is a store that buys and sells musical instruments in ontario where the hst rate is 13 michaels music uses perpetual inventory system and the earnings approach to revenue recognition so

          Michael’s music is a store that buys and sells musical instruments in Ontario where the HST rate is 13% Michael’s music uses perpetual inventory system, and the earnings approach to revenue recognition. 
Sold one omega trumpet to regional band on account for an invoice price of $4,600 before applicable taxes. The trumpet had cost Michael’s Music $2,700. 
prepare the journal entries to record the Michael’s music transactions

Added by Amanda B.

Prealgebra

Lynn Marecek, MaryAnne Anthony-Smith 1st Edition

Chapter 6

Instant Answer

Solved by Expert Penny Riley

09/17/2024

Step 1

The HST rate is 13%, so the tax on the sale would be $4,600 * 13% = $598. Next, we record the sale of the trumpet. The sale price is $4,600 and the HST is $598, so the total amount of the sale is $4,600 + $598 = $5,198. The journal entry to record the sale would Show more…

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Michael’s music is a store that buys and sells musical instruments in Ontario where the HST rate is 13% Michael’s music uses perpetual inventory system, and the earnings approach to revenue recognition. Sold one omega trumpet to regional band on account for an invoice price of $4,600 before applicable taxes. The trumpet had cost Michael’s Music $2,700. prepare the journal entries to record the Michael’s music transactions