In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.1. Pina Colada Corp. enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $37,000 and sales taxes $1,850.2. Cullumber Company does not segregate sales and sales taxes. Its register total for April 15 is $22,896, which includes a 6% sales tax.Prepare the entry to record the sales transactions and related taxes for each client. Omit the cost of goods sold entry.

Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Answered: In performing accounting services for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.

1.		Pina Colada Corp. enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $37,000 and sales taxes $1,850.
2.		Cullumber Company does not segregate sales and sales taxes. Its register total for April 15 is $22,896, which includes a 6% sales tax.

Prepare the entry to record the sales transactions and related taxes for each client. Omit the cost of goods sold entry.

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