Current Liabilities and Payroll Accounting

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.

  1. Poole Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500.
  2. Waterman Company does not segregate sales and sales taxes. Its register total for April 15 is $25,680, which includes a 7% sales tax

Instructions

Prepare the entry to record the sales transactions and related taxes for each client.

Solution

Poole Company
Journal entries
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