In providing accounting services to small businesses, youencounter the following

Question

In providing accounting services to small businesses, youencounter the following situations pertaining to cash sales.

1. Mariella Company rings up sales and sales taxes separately onits cash register. On April 10 the register totals are sales$25,000 and sales taxes $1,250.

2. Brent Company does not segregate sales and sales taxes. Itsregister total for April 15 is $11,660, which includes a 6% salestax.

Prepare the entries to record the sales transactions and relatedtaxes for: (For multiple debit/credit entries,list accounts in order of magnitude. Round all answers to 0decimal places.)

Mariella Company

Brent Company

Date Account /Description Debit Credit April 10 CashAccounts receivableNote payableInterest payableSales taxes payableSalesInterest expense $          Interest expenseAccounts receivableSales taxes payableSalesCashNote payableInterest payable $          Note payableInterest payableInterest expenseAccounts receivableSales taxes payableSalesCash $

Explanation / Answer

1. Mariella company        Cash               Dr         26,250           Sales                                 25,000            Salestaxpayable                  1,250 2.Brent company        Cash    Dr 11,660   Sales                                  11,000    Sales tax payable        660

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