(Answered) Q1 at what point and how are sales taxes charged to

Accounting

Q1. At what point and how are sales taxes charged to customers recorded?

At the time of the sale as revenue

At the time of the sale as a liability

At the time the sale takes place as an expense

At the time collected from the customer as unearned revenue

Q2. Brazen Inc. sells bonds with a face value of $1,000,000 and a contract interest rate of 9% for $1,200,000. The bonds will mature in 10 years. Using the straight line method of amortization of the bonds' premium, how much interest expense will be recognized in year 1?

$108,000

$70,000

$110,000

$90,000

Q3. How are convertible bonds accounted for on the date of issuance under IFRS?

A portion of the issue price is reported as equity and the other portion is expensed immediately.

The issue price is reported as stockholders' equity.

The issue price is reported as a liability.

A portion of the issue price is reported as debt and a portion as equity.

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