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In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Oriole Company enters sales and sales taxes separately
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Oriole Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500. Sheridan Company does not segregate sales and sales taxes. Its register total for April 15 is $22,260, which includes a 6% sales tax. 2. Prepare the entry to record the sales transactions and related taxes for Oriole Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 10 Cash 28500 Sales Revenue 30000 Sales Taxes Payable 1500 Prepare the entry to record the sales transactions and related taxes for Sheridan Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 15 Cash 22260 Sales Revenue Sales Taxes Payable
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