In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales....
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In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Wildhorse Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $27,500 and sales taxes $1,375. 2. Carla Vista Company does not segregate sales and sales taxes. Its register total for April 15 is $19,610, which includes a 6% sales tax. (a) Your answer is correct. Prepare the entry to record the sales transactions and related taxes for Wildhorse Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation April 10 Cash Sales Revenue Sales Taxes Payable Debit 28,875 Credit 27,500 1,375 (b) Your answer is partially correct. Prepare the entry to record the sales transactions and related taxes for Carla Vista Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date April 15 Account Titles and Explanation Cash Debit Credit Sales Revenue Sales Taxes Payable In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Wildhorse Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $27,500 and sales taxes $1,375. 2. Carla Vista Company does not segregate sales and sales taxes. Its register total for April 15 is $19,610, which includes a 6% sales tax. (a) Your answer is correct. Prepare the entry to record the sales transactions and related taxes for Wildhorse Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation April 10 Cash Sales Revenue Sales Taxes Payable Debit 28,875 Credit 27,500 1,375 (b) Your answer is partially correct. Prepare the entry to record the sales transactions and related taxes for Carla Vista Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date April 15 Account Titles and Explanation Cash Debit Credit Sales Revenue Sales Taxes Payable
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