In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Carla Vista Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $26,500 and sales taxes $1,325. 2. Wildhorse Co. does not segregate sales and sales taxes. Its register total for April 15 is $18,550, which includes a 6% sales tax. (a) Prepare the entry to record the sales transactions and related taxes for Carla Vista Co.
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Carla Vista Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $26,500 and sales taxes $1,325. 2. Wildhorse Co. does not segregate sales and sales taxes. Its register total for April 15 is $18,550, which includes a 6% sales tax. (a) Prepare the entry to record the sales transactions and related taxes for Carla Vista Co.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
| 1. | Carla Vista Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $26,500 and sales taxes $1,325. | |
| 2. | Wildhorse Co. does not segregate sales and sales taxes. Its register total for April 15 is $18,550, which includes a 6% sales tax. |
(a)
Prepare the entry to record the sales transactions and related taxes for Carla Vista Co.. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
Apr. 10
|
enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10enter an account title to record the sales transactions and related taxes for Carla Vista Co. on April 10
|
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