Exercise 10-4 In performing accounting services for small businesses, you encoun
ID: 2567367 • Letter: E
Question
Exercise 10-4
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
1. Sandhill Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $32,500 and sales taxes $1,625. 2. Carla Vista Co. does not segregate sales and sales taxes. Its register total for April 15 is $21,400, which includes a 7% sales tax. Exercise 10-4 In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Sandhill Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $32,500 and sales taxes $1,625 Carla Vista Co. does not segregate sales and sales taxes. Its register total for April 15 is $21,400, which includes a 796 sales tax. Prepare the entry to record the sales transactions and related taxes for Sandhill Co.. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Apr. 10 Debit Credit Prepare the entry to record the sales transactions and related taxes for Carla Vista Co.. (Credit account titles are automatically indented when amount is entered Do not indent manually.) Date Account Titles and Explanation Apr. 15 Debit CreditExplanation / Answer
Date Account title and Explanation Debit Credit Apr-10 Cash $34125 Sales $32500 Sales tax payable $1625 ( to record sales) Apr-15 Cash $21400 Sales $20000 Sales tax payable $1400 ( to record sales) Sale in percentage 107% Sales value $21400 Sales Tax (21400/107*7) 1400 Sales (21400/107*100) 20000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.