In providing accounting services to small businesses, you encounter the following situations. Bonita Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre- tax sales of sales $4,800 plus GST of $240 and PST of $384. Amy Corporation receives its annual property tax bill in the amount of $8,700 on May 31. (i) During the month of March, Swifty Corporation's employees earned gross salaries of $57,700. Withholdings deducted from employee earnings related to these salaries were $2,720 for CPP. $1,065 for El, $6,800 for income taxes. (ii) Swifty's employer portions were $2.720 for CPP and $1,491 for El for the month. 1. 2. 3. Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Sr no. Account Titles and Explanation 1. 2. Cash Sales Sales Tax Payable Property Tax Expense Property Tax Payable Debit 5424 8700 Credit 4800 624 8700
In providing accounting services to small businesses, you encounter the following situations. Bonita Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre- tax sales of sales $4,800 plus GST of $240 and PST of $384. Amy Corporation receives its annual property tax bill in the amount of $8,700 on May 31. (i) During the month of March, Swifty Corporation's employees earned gross salaries of $57,700. Withholdings deducted from employee earnings related to these salaries were $2,720 for CPP. $1,065 for El, $6,800 for income taxes. (ii) Swifty's employer portions were $2.720 for CPP and $1,491 for El for the month. 1. 2. 3. Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Sr no. Account Titles and Explanation 1. 2. Cash Sales Sales Tax Payable Property Tax Expense Property Tax Payable Debit 5424 8700 Credit 4800 624 8700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q1
Transcribed Image Text:In providing accounting services to small businesses, you encounter the following situations.
Bonita Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-
tax sales of sales $4,800 plus GST of $240 and PST of $384.
Amy Corporation receives its annual property tax bill in the amount of $8,700 on May 31.
(i) During the month of March, Swifty Corporation's employees earned gross salaries of $57,700. Withholdings deducted
from employee earnings related to these salaries were $2,720 for CPP, $1,065 for El, $6,800 for income taxes. (ii) Swifty's
employer portions were $2,720 for CPP and $1,491 for El for the month.
1.
2.
3.
Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, eg. 5,275.)
Sr no. Account Titles and Explanation
1.
2.
Cash
Sales
Sales Tax Payable
Property Tax Expense
Property Tax Payable
Debit
5424
8700
Credit
4800
624
8700
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