Question

Awesome Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 2019 follow, along with the general ledger accounts used to record these transactions.

GENERAL LEDGER ACCOUNTS

101	Cash	$	17,400	Dr.
109	Notes Receivable
111	Accounts Receivable		22,000	Dr.
401	Sales
451	Sales Returns and Allowances
452	Sales Discounts

DATE			TRANSACTIONS
April	1		Sold merchandise for $4,900 to Soprano Music Center; issued Invoice 9312 with terms of 2/10, n/30.
	3		Received a check for $1,960 from Music Supply Store in payment of Invoice 6718 of March 25 ($2,000), less a cash discount ($40).
	5		Sold merchandise for $1,825 in cash to a new customer who has not yet established credit.
	8		Sold merchandise for $5,500 to Music Warehouse; issued Invoice 9313 with terms of 2/10, n/30.
	10		Soprano Music Center sent a check for $4,802 in payment of Invoice 9312 of April 1 ($4,900), less a cash discount ($98).
	15		Accepted a return of damaged merchandise from Music Warehouse; issued Credit Memorandum 105 for $900; the original sale was made on Invoice 9313 of April 8.
	19		Sold merchandise for $11,500 to Eagleton Music Center; issued Invoice 9314 with terms of 2/10, n/30.
	23		Collected $3,225 from Sounds From Yesterday for Invoice 6725 of March 25.
	26		Accepted a two-month promissory note for $6,500 from Country Music Store in settlement of its overdue account; the note has an interest rate of 12 percent.
	28		Received a check for $11,270 from Eagleton Music Center in payment of Invoice 9314, dated April 19 ($11,500), less a cash discount ($230).
	30		Sold merchandise for $10,800 to Contemporary Sounds, Inc.; issued Invoice 9315 with terms of 2/10, n/30.

Required:

Open the general ledger accounts and enter the balances as of April 1, 2019.

Record the transactions in a sales journal, a cash receipts journal, and a general journal.

Post the entries from the general journal to the general ledger.

Total, prove, and rule the special journals as of April 30, 2019.

Post the column totals from the special journals to the proper general ledger accounts.

Prepare the heading and the Revenue section of the firm’s income statement for the month ended April 30.

Analyze:
What total sales on account were made in the month of April, prior to any returns or allowances

General Ledgers

Sales Journal

Cash Receipts

General Journal

Income Statement

Analyze

Plot the opening balances and transactions into the appropriate ledger accounts

Answer 1

Date	Particulars	Amount($)	Amount($)
April1	Accounts Receivable	4900
	Sales		4900
	Sales to Soprano Music Center Invoice 9312 with terms of 2/10, n/30
April3	Cash	1960
	Sales Discount	40
	Accounts Receivable		2000
	Cash Received from Music Supply Store Invoice 6718
April5	Cash	1825
	Sales		1825
	Doods sold for Cash
April8	Accounts Receivable	5500
	Sales		5500
	Sold goods to Music Warehouse Invoice 9313 with terms of 2/10, n/30
April10	Cash	4802
	Sales Discount	98
	Accounts receivable		4900
	Amount received fromSoprano Music Center
April15	Sales Returns and Allowances	900
	Accounts Receivable		900
	Sales Returns from Music Warehouse Invoice 9313
April19	Accounts Receivable	11500
	Sales		11500
	Sold goods toEagleton Music Center Invoice 9314 with terms of 2/10, n/30.
April23	Cash	3225
	Sales		3225
	Cash received for sales
April26	Notes Receivable	6500
	Account Receivable		6500
	Accepted a two-month promissory note on 12% Intrest
April28	Cash	11270
	Sales discount	230
	Accounts Receivablle		11500
	Amount Received from Eagleton Music Center
April30	Accounts Receivable	10800
	Sales		10800
	Goods Sold to Contemporary Sounds Invoice 9315 with terms of 2/10, n/30

Accounts Receivable Ledger

Date	Debit ($)	Credit ($)	Balance($)
1-Apr	4900		4900
3-Apr		2000	2900
8-Apr	5500		8400
10-Apr		4900	3500
15-Apr		900	2600
19-Apr	11500		14100
26-Apr		6500	7600
28-Apr		11500	(3900)
30-Apr	10800		$6900

Sales Ledger

Date	Debit ($)	Credit ($)	Balance($)
1-Apr		4900	4900
5-Apr		1825	6725
8-Apr		5500	12225
19-Apr		11500	23725
25-Apr		3225	26950
30-Apr		10800	$37750

Cash Ledger

Date	Debit ($)	Credit ($)	Balance($)
3-Apr	1960		1960
5-Apr	1825		3785
10-Apr	4802		8587
25-Apr	3225		11812
28-Apr	11270		$23082

sales Discount Ledger

Date	Debit ($)	Credit ($)	Balance($)
3-Apr	40		40
10-Apr	98		138
28-Apr	230		$368

Sales Returns and Allowances Ledger

Date	Debit ($)	Credit ($)	Balance($)
15-Apr	900		$900

Notes Receivable Ledger

Date	Debit ($)	Credit ($)	Balance($)
26-Apr	6500		$6500

Date	Debit ($)	Credit ($)	Balance($)
15-Apr	900		$900