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College Accounting, Chapters 1-15 (22nd Edition): Chapter 12, Problem 8AP. Only difference is the sales tax...

College Accounting, Chapters 1-15 (22nd Edition): Chapter 12, Problem 8AP. Only difference is the sales tax is 6% instead of 8%.

Sales Journal, Cash Receipts Journal, and General Journal. Owens Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 6% sales tax. Beginning general ledger account balances were Cash, $9,741; and Accounts Receivable, $1058.25. Beginning customer account balances were Thompson Group, $1058.25.

Mar. 1 Sold merchandise to Able & Co., $1,800, plus sales tax. Sale No. 33C.

3 Sold merchandise to R. J. Kalas, Inc., $2,240, plus sales tax. Sale No. 33D.

  5 Able & Co. returned merchandise from Sale No. 33C for a credit (Credit Memo No. 66), $30, plus sales tax.

  7 Made cash sales for the week, $3,160, plus sales tax.

  10 Received payment from Able & Co. for Sale No. 33C less Credit Memo No. 66.

  11 Sold merchandise to Blevins Bakery, $1,210, plus sales tax. Sale No. 33E.

  13 Received payment from R. J. Kalas for Sale No. 33D.

  14 Made cash sales for the week, $4,200, plus sales tax.

  16 Blevins Bakery returned merchandise from Sale No. 33E for a credit (Credit Memo No. 67), $44, plus sales tax.

  18 Sold merchandise to R. J. Kalas, Inc., $2,620, plus sales tax. Sale No. 33F.

  20 Received payment from Blevins Bakery for Sale No. 33E less Credit Memo No. 67.

  21 Made cash sales for the week, $2,400, plus sales tax.

  25 Sold merchandise to Blevins Bakery, $1,915, plus sales tax. Sale No. 33G.

  27 Sold merchandise to Thompson Group, $2,016, plus sales tax. Sale No. 33H.

  28 Made cash sales for the week, $3,500, plus sales tax.

Required:

1. Record the transactions in the sales journal, cash receipts journal, and general journal. Total, verify, and rule the columns where appropriate at the end of the month.

2. Post the individual purchase amounts to the accounts payable ledger.

Solutions

Expert Solution

General Journal
Date Particulars Ref Debit Credit
Mar-01 Accounts Receivable A/c Dr. 33 C 1908
To Sales A/c 1800
To Sales Tax Liability A/c 108
(Being goods sold to Able & co.)
Mar-03 Accounts Receivable A/c Dr. 33 D 2374.4
To Sales A/c 2240
To Sales Tax Liability A/c 134.4
(being goods sold to R.J.Kalas)
Mar-05 Sales Return A/c Dr. 66 30
Sales Tax Liability A/c Dr. 1.8
To accounts receivable a/c 31.8
(being goods returned by Able & co. )
Mar-07 Cash a/c Dr. 3349.6
To Sales A/c 3160
To Sales Tax liability A/c 189.6
(being cash sales made)
Mar-10 Cash A/c Dr. 33 C 1876.2
To Accounts Recivable a/c 1876.2
(being cash received from Able & Co.)
Mar-11 Accounts Receivable A/c Dr. 33 E 1282.6
To Sales A/c 1210
To Sales Tax Liability A/c 72.6
(Being goods sold to Blevins bakery.)
Mar-13 Cash A/c Dr. 33D 2374.4
To Accounts Recivable a/c 2374.4
(being cash received from R.J.Kalas)
Mar-14 Cash a/c Dr. 4452
To Sales A/c 4200
To Sales Tax liability A/c 252
(being cash sales made)
Mar-16 Sales Return A/c Dr. 67 44
Sales Tax Liability A/c Dr. 2.64
To accounts receivable a/c 46.64
(being goods returned by Blevins Bakery. )
Mar-18 Accounts Receivable A/c Dr. 33 F 2777.2
To Sales A/c 2620
To Sales Tax Liability A/c 157.2
(being goods sold to R.J.Kalas)
Mar-20 Cash A/c Dr. 33 E 1235.96
To Accounts Recivable a/c 1235.96
(being cash received from Blevins Bakery)
Mar-21 Cash a/c Dr. 2544
To Sales A/c 2400
To Sales Tax liability A/c 144
(being cash sales made)
Mar-25 Accounts Receivable A/c Dr. 33 G 2029.9
To Sales A/c 1915
To Sales Tax Liability A/c 114.9
(Being goods sold to Blevins bakery.)
Mar-27 Accounts Receivable A/c Dr. 33 H 2136.96
To Sales A/c 2016
To Sales Tax Liability A/c 120.96
(Being goods sold to Thompson Group.)
Mar-28 Cash a/c Dr. 3710
To Sales A/c 3500
To Sales Tax liability A/c 210
(being cash sales made)
Mar-31 Sales Tax Liability A/c Dr. 1499.22
To Cash A/c 1499.22
(being sales tax deposited to government at month end)
TOTAL 33628.88 33628.88
CASH A/C
Date Particulars Debit S.No. Particulars Credit
March 1 Op balance 9741 March 30 By sales tax liability 1499.22
March 7 To Sales 3160
March 7 To Sales tax Liability 189.6
March 10 To Accounts Recivable 1876.2
March 13 To Accounts Recivable 2374.4 March 30 Closing Balance 26547.98
March 14 To Sales 4200
March 14 To Sales tax Liability 252
March 20 To Accounts Recivable 0
March 21 To Sales 2400 0
March 21 To Sales tax Liability 144
March 28 To Sales 3500
March 28 To Sales tax Liability 210
Total 28047.2 Total 28047.2
Sales A/c
Date Particulars Debit Date Particulars Credit
Mar-01 By Accounts Receivable 1800
Mar-03 By Accounts Receivable 2240
Mar-31 Closing Balance 23378.6 Mar-07 By cash 3349.6
Mar-11 By Accounts Receivable 1210
March 14 By cash 4200
march 18 By Accounts Receivable 2620
March 21 By cash 2544
March 25 By Accounts Receivable 1915
Mar-27 By Cash 3500
Total 23378.6 Total 23378.6
Accounts Receivable a/c
Mar-01 Op balance 1058.25 Mar-05 By sales return 30
Mar-01 To Sales 1800 Mar-05 By Sales tax liability 1.8
Mar-01 ToSales tax liability 108 Mar-10 By Cash 1876.2
Mar-03 To Sales 2240 Mar-13 By Cash 2374.4
Mar-03 ToSales tax liability 134.4 Mar-16 By sales return 44
Mar-11 To Sales 1210 Mar-16 By Sales tax liability 2.64
Mar-11 ToSales tax liability 72.6 Mar-20 By Cash 1235.96
Mar-18 To Sales 2620
Mar-18 ToSales tax liability 157.2
Mar-25 To Sales 1915
Mar-25 ToSales tax liability 114.9 Mar-31 Balance 8002.31
Mar-27 To Sales 2016
Mar-27 ToSales tax liability 120.96
Total 13567.31 Total 13567.31

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