During August, Hill Sales Company had these summarytransactions:
| 1. | Cash sales of $230,000, subject to sales taxes of 6%. |
| 2. | Sales on account of $260,000, subject to sales taxes of6%. |
| 3. | Paid the sales taxes to the state |
| Prepare journal entries to record the precedingtransactions. |
q2
On August 1, 2016, Pereira Corporation has sold, on account,1,800 Wiglows to Mendez Company at $480 each. Mendez also purchaseda 1-year service-type warranty on all the Wiglows for $10 per unit.In 2016, Pereira incurred warranty costs of $9,000. Costs for 2017were $6,000.
Required:
| 1. | Prepare the journal entries for the precedingtransactions. |
| 2. | Show how Pereira would report the items on the December 31,2016, balance sheet. |
