In providing accounting services to small businesses, you encounter the following situations. Bonita Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre- tax sales of sales $4,800 plus GST of $240 and PST of $384. Amy Corporation receives its annual property tax bill in the amount of $8,700 on May 31. (i) During the month of March, Swifty Corporation's employees earned gross salaries of $57,700. Withholdings deducted from employee earnings related to these salaries were $2,720 for CPP. $1,065 for El, $6,800 for income taxes. (ii) Swifty's employer portions were $2.720 for CPP and $1,491 for El for the month. 1. 2. 3. Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Sr no. Account Titles and Explanation 1. 2. Cash Sales Sales Tax Payable Property Tax Expense Property Tax Payable Debit 5424 8700 Credit 4800 624 8700

In providing accounting services to small businesses, you encounter the following situations. Bonita Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre- tax sales of sales $4,800 plus GST of $240 and PST of $384. Amy Corporation receives its annual property tax bill in the amount of $8,700 on May 31. (i) During the month of March, Swifty Corporation's employees earned gross salaries of $57,700. Withholdings deducted from employee earnings related to these salaries were $2,720 for CPP. $1,065 for El, $6,800 for income taxes. (ii) Swifty's employer portions were $2.720 for CPP and $1,491 for El for the month. 1. 2. 3. Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Sr no. Account Titles and Explanation 1. 2. Cash Sales Sales Tax Payable Property Tax Expense Property Tax Payable Debit 5424 8700 Credit 4800 624 8700

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 2E

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Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
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