[Ladyinlove55]

Jan 14.Dr sales Taxes 5800
Cr cash 5800
(to record sales taxes collected in Dec 2005)

I want to know if this is how I am to journalize this transaction?

[consuela]

Treasury stock is a stock that a company has bought back. It is a contra equity account normal balance is a debit.

Treasury stock-------------------X (debit)
Cash-------------------------------X (credit)

Hope this helped

[morgaine300]

The reference is to "state treasury costs." Which isn't really the proper thing to call it, but the state treasury can be the one collecting the sales tax. So "treasury" here is implying a place, not treasury stock.

If you are really referring to sales taxes (as opposed to state income taxes), which I can only dissern from the entry you made, then this is not a cost to the company at all. They collect it from the customers. It's an expense to the customers. The company merely collects them up and then passes it along to the state tax office. When it's collected, it's put into a Sales Tax Payable account because it's still due to be paid to the state. When it comes due, it's debited back out of the payable. And the credit to cash would be correct.