The state of Iowa has a 5% sales tax. Hawkeye Services Inc., an Iowa company, had two revenue transactions as follows:
May 8. Issued Invoice No. 112 to Howerton Inc. for services provided on account, $4,200, plus sales tax.
20. Issued Invoice No. 113 to Tel Optics Inc. for services provided on account, $5,780, plus sales tax.
Record these transactions in a revenue journal using the following format:
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REVENUE JOURNAL |
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Accts. |
Fees |
Sales Tax |
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Invoice |
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Post. |
Rec. |
Earned |
Payable |
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Date |
No. |
Account Debited |
Ref. |
Dr. |
Cr. |
Cr. |