Nicholas earned 10.5% in his savings account. if he is in the 31% tax bracket, what is his after-tax savings rate of return?

Identification of Appropriate Journals for Transactions:

Transaction                                                              Appropriate Journal

1. Owner withdrew supplies                                    General Journal

2. Sale made on account                                         Sales Journal

3. Payment to vendor on account                           Cash Payment Journal

4. Payment received from customer on account   Cash Receipts Journal

5. Purchases on account                                         Purchases Journal

6. Adjusting journal entry for supplies used          Adjusting Journal

7. Owner withdrew cash                                         Cash Payment Journal

8. Company borrows money from bank                Cash Receipts Journal

9. Record monthly depreciation                             Adjusting Journal

10. Close revenue accounts at month end            Closing Journal

Explanation:

General Journal: This journal can be used to record all kinds of transactions.

Adjusting Journal: This journal is used for making adjustments to the accounts in order to ensure full compliance with accrual accounting principle.

Closing Journal: This is used to close temporary accounts to permanent accounts at the end of accounting period.

Specialized Journals: These include Sales Journal, Purchases Journal, Cash Receipts Journal, and Cash Payments Journal.