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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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