In: Accounting
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.
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 |