In Providing Accounting Services to Small Business, You Encounter the Following

question 29

Essay

In providing accounting services to small business, you encounter the following situations pertaining to cash sales.
(1) Kushner Company rings up sales and sales taxes separately on its cash register. On April 10 the register totals are sales $40,000 and sales taxes $2,800.
(2) Grant Company does not segregate sales and sales taxes. Its register total for April 15 is $22,260, which includes a 6% sales tax.
Instructions
Prepare the entries to record the sales transactions and related taxes for (a) Kushner Company and (b) Grant Company.

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Definitions:

Price Unchanged

A situation in which the selling price of a good or service remains the same over a given period.

Financial Account

A component of a country's balance of payments that records all transactions involving the purchase or sale of financial assets.

Hypothetical Data

Data or information that is assumed or simulated based on certain conditions or parameters, used for theoretical analysis or making predictions.