Instructions: Prepare the needed journal entries for Cerviq Company.

Cerviq Company enters sales and sales taxes separately on its cash register. On April $10,$ the register totals

are sales $$22,000$ and sales taxes $$1,100.$ Total cash received was $$23,100.$

Medicare taxes. Record the two needed entries assuming all wages are paid with cash. Any taxes are "owed" at month end.

CHECK FIGURE: Cash $-$ $$48,504$

A$.$ Show the entry to record the wages, take out the taxes $($and owed to the government$),$ and pay the employees with cash.

Debit

Credit

B$.$ Show the entry to record the taxes that Cerviq Company has to match that are then "owed" to the government.