Question

2)	A chair costing $350.00 is put on layaway as the customer deposits
	$150.00 on May 1, 2009. The cost of the chair to the company
	is $179.00
	The customer makes another payment of $150.00 on June 15, 2009
	The customer pays in full for the layaway and takes the chair home
	on July 7, 2009. The sales tax charged on this purchase is 8.25%.
	Create the journal entries to record the three transactions.
						(check figure: cash received on 7/7/2009 = 78.88)

Answer 1

Date	General Journal	Debit	Credit
May 1, 2009	Cash	150.00
	Unearned sales revenue		150.00
	(To record customer deposit on layaway)
June 15, 2009	Cash	150.00
	Unearned sales revenue		150.00
	(To record customer deposit on layaway)
July 7, 2009	Cash	78.88
	Unearned sales revenue	300.00
	Sales revenue		350.00
	Sales tax payable (8.25% x $350)		28.88
	(To record sales revenue)
July 7, 2009	Cost of goods sold	179.00
	Inventory		179.00
	(To record cost of goods sold)