Question

Exercise 10-4 (Part Level Submission) In performing accounting services for small 1. Crane Company enters sales and sales taxes 2. Sunland Company does not segregate businesses, you encounter the following situations pertaining to cash sales. cash register. On April 10, the register totals are sales $28,500 and sales taxes $1,425. sales and sales taxes. Its register total for April Sì.17,100, which nades a 7% sales ta ▼ (a) prepare the entry to record the sales transactions and related taxes for Crane Company.(Credit account titles are automatically indented when amount is entered. De not indent manually) Date Account Titks and Explanation Debit Cret Apr, 10 Click it you would like to Show Work for this question: Open Shew Work

Answer 1

Ans:

(a) Prepare the entry to record the sales transactions and related taxes for Crane Company.

Date	Account Titles and Explanation	Debit	Credit
April.10	Cash (28,500+1,425)	$29,925
	Sales revenue		$28,500
	sales Tax payable		$1,425
	(Being entry for recording cash sales)

b) Prepare the entry to record the sales transactions and related taxes for Sunland Company.

Date	Account Titles and Explanation	Debit	Credit
April 15	Cash	$17120
	Sales Revenue		$16000
	Sales Tax payable		1120	=17120/107*7
	(Being entry for recording cash sales)