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:

Systems Theory

An interdisciplinary theory that studies complex systems in nature, society, and science, analyzing how various parts interrelate and how systems work over time.

Boundaries

Limits or borders that define acceptable behavior and responsibilities in relationships or activities.

Subordinate Systems

Systems that operate under the guidance or control of a higher-order system or authority.

Acculturation

The process by which individuals learn and adopt the cultural traits or social patterns of another group, often occurring in situations of immigration or integration.