In performing accounting services for small businesses, you encounter the following situations per taining to cash sales. 1. Marigold Corp. enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $31,500 and sales taxes $1,575.
2. Cullumber Company does not segregate sales and sales taxes. Its register total for April 15 is $23,320, which includes a 6% sales tax.

Required:
a. Prepare the entries to record the sales transactions and related taxes for Furcal Company.
b. Prepare the entries to record the sales transactions and related taxes for Crystal Company.

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: