Question

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.

Answer 1

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