Exercise 10-4 (Part Level Submission) In providing accounting services to small
ID: 2591630 • Letter: E
Question
Exercise 10-4 (Part Level Submission) In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales. 1. Furcal Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $38,500 and sales taxes $1,925. 2. Crystal Company does not segregate sales and sales taxes. Its register total for April 15 is $15,120, which includes a 8% sales tax. (a) Prepare the entries to record the sales transactions and related taxes for Furcal Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Apr. 10 Debit Credit SHOW LIST OF ACCOUNTS VIDEO: SIMILAR PROBLEMExplanation / Answer
Answer (a) - Journal entry worksheet for furcal company
Narration - Being journal entry passed for casg sales and sales tax payable credited as liability.
Answer (b) - Journal of Crystal company
Total Sales tax = 8%
Assume sales = 100
Sales tax = 8
Aggregate sales ($15120) = 108
Date Accounts Title Debit Credit April 10 Cash $40425 Sales $38500 Sales tax payable $1925Related Questions
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