Question
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
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 $35,100 and sales taxes $1,755.
2. Crystal Company does not segregate sales and sales taxes. Its register total for April 15 is $20,330, which includes a 7% sales tax.
A. Prepare the entries to record the sales transactions and related taxes to Furcal Company.
Date | Account Titles and Explanation | Debit | Credit |
Apr. 10 | |||
Apr. 10 | |||
Apr.10 |
B. Prepare the entries to record the sales transactions and relaxed taxes for Crystal Company.
Date | Account Titles and Explanation | Debit | Credit |
Apr. 15 | |||
Apr. 15 | |||
Apr. 15 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started