Exercise 10-05In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.1. Ivanhoe Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $24,000 and sales taxes $1,200.2. Pharoah Company does not segregate sales and sales taxes. Its register total for April 15 is $15,900, which includes a 6% sales tax.     Prepare the entry to record the sales transactions and related taxes for Ivanhoe Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditApr. 10enter an account title to record the sales transactions and related taxes for Ivanhoe Company on April 10 enter a debit amount enter a credit amount  enter an account title to record the sales transactions and related taxes for Ivanhoe Company on April 10 enter a debit amount enter a credit amount  enter an account title to record the sales transactions and related taxes for Ivanhoe Company on April 10 enter a debit amount enter a credit amount   SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO   Prepare the entry to record the sales transactions and related taxes for Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditApr. 15enter an account title to record the sales transactions and related taxes for Pharoah Company on April 15 enter a debit amount enter a credit amount  enter an account title to record the sales transactions and related taxes for Pharoah Company on April 15 enter a debit amount enter a credit amount  enter an account title to record the sales transactions and related taxes for Pharoah Company on April 15 enter a debit amount enter a credit amount

Question
Asked Nov 18, 2019

Exercise 10-05

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

1.   Ivanhoe Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $24,000 and sales taxes $1,200.
2.   Pharoah Company does not segregate sales and sales taxes. Its register total for April 15 is $15,900, which includes a 6% sales tax.
 
 
 
 
 
Prepare the entry to record the sales transactions and related taxes for Ivanhoe Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Apr. 10
enter an account title to record the sales transactions and related taxes for Ivanhoe Company on April 10
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record the sales transactions and related taxes for Ivanhoe Company on April 10
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record the sales transactions and related taxes for Ivanhoe Company on April 10
 
enter a debit amount
 
enter a credit amount
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO VIDEO
 
 
 
Prepare the entry to record the sales transactions and related taxes for Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Apr. 15
enter an account title to record the sales transactions and related taxes for Pharoah Company on April 15
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record the sales transactions and related taxes for Pharoah Company on April 15
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title to record the sales transactions and related taxes for Pharoah Company on April 15
 
enter a debit amount
 
enter a credit amount
 
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Expert Answer

Step 1

Journal entry in the books ...

Account titles and explanation
Debit
Date
Credit
April. 10 Cash
25,200
24,000
1,200
Sales revenue
Sales taxes payable
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Account titles and explanation Debit Date Credit April. 10 Cash 25,200 24,000 1,200 Sales revenue Sales taxes payable

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