Question

In: Accounting

During August, Hill Sales Company had these summary transactions: 1. Cash sales of $230,000, subject to...

During August, Hill Sales Company had these summary transactions:

1. Cash sales of $230,000, subject to sales taxes of 6%.
2. Sales on account of $260,000, subject to sales taxes of 6%.
3. Paid the sales taxes to the state
Prepare journal entries to record the preceding transactions.

q2

On August 1, 2016, Pereira Corporation has sold, on account, 1,800 Wiglows to Mendez Company at $480 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $10 per unit. In 2016, Pereira incurred warranty costs of $9,000. Costs for 2017 were $6,000.

Required:

1. Prepare the journal entries for the preceding transactions.
2. Show how Pereira would report the items on the December 31, 2016, balance sheet.

Solutions

Expert Solution

ekkarill92 answered 7 months ago
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