In performing accounting services for small businesses, you encounter the following situations per taining to cash sales. 1. Tamarisk, Inc. enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $37,500 and sales taxes $1,875. 2. Ivanhoe Company does not segregate sales and sales taxes. Its register total for April 15 is $24,610, which includes a 7% sales tax. Prepare the entry to record the sales transactions and related taxes for each client. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
In performing accounting services for small businesses, you encounter the following situations per taining to cash sales. 1. Tamarisk, Inc. enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $37,500 and sales taxes $1,875. 2. Ivanhoe Company does not segregate sales and sales taxes. Its register total for April 15 is $24,610, which includes a 7% sales tax. Prepare the entry to record the sales transactions and related taxes for each client. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
In performing accounting services for small businesses, you encounter the following situations per taining to cash sales.
|
1.
|
Tamarisk, Inc. enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $37,500 and sales taxes $1,875. | |
|
2.
|
Ivanhoe Company does not segregate sales and sales taxes. Its register total for April 15 is $24,610, which includes a 7% sales tax. |
Prepare the entry to record the sales transactions and related taxes for each client. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
No.
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|---|
|
Tamarisk, Inc.
|
||||
|
1.
|
choose a transaction date
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
|
Ivanhoe Company
|
||||
|
2.
|
choose a transaction date
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
|
enter an account title
|
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