Question

Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firm’s cash receipts for February and the general ledger accounts used to record these transactions are shown below.

GENERAL LEDGER ACCOUNTS

101	Cash	$	5,060	Dr.		401	Sales
109	Notes Receivable		900	Dr.		491	Interest Income
111	Accounts Receivable		4,125	Dr.		620	Cash Short or Over
129	Supplies		710	Dr.
231	Sales Tax Payable		345	Cr.
301	Jason Wilson, Capital		35,000	Cr.

DATE			TRANSACTIONS
Feb.	3		Received $600 from Danielle Pelzel, a credit customer, on account.
	5		Received a cash refund of $130 for damaged supplies.
	7		Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70.
	9		Jason Wilson, the owner, invested an additional $16,000 cash in the business.
	12		Received $480 from Kyela Jones, a credit customer, in payment of her account.
	14		Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38.
	16		Received $550 from Sadie Nelson, a credit customer, to apply toward her account.
	19		Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36.
	21		Had cash sales of $5,050 plus sales tax of $404 during the third week of February.
	25		Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes.
	28		Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46.

Required:

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

Record the transactions in a cash receipts journal.

Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.

Total, prove, and rule the cash receipts journal as of February 28, 2019.

Post the column totals from the cash receipts journal to the proper general ledger accounts.

Analyze:
What total accounts receivable were collected in February?

Post the opening balances and transactions into the appropriate ledger accounts.

General Ledgers

Cash Receipts

Analyze

Answer 1

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Cash
Date	Debit	Credit	Balance
Feb 1	$       5,060		$    5,060
Feb 28	$     41,438		$ 46,498
Note Receivable
Date	Debit	Credit	Balance
Feb 1	$           900		$        900
Feb 19		$        900	$           -
Accounts Receivable
Date	Debit	Credit	Balance
Feb 1	$       4,125		$    4,125
Feb 28	$       2,310		$    6,435
Supplies
Date	Debit	Credit	Balance
Feb 1	$           710		$        710
Feb 5		$        130	$        580
Sales Tax Payable
Date	Debit	Credit	Balance
Feb 1		$        345	$        345
Feb 28		$    1,640	$    1,985
Sales
Date	Debit	Credit	Balance
Feb 1		$        401	$        401
Feb 28		$ 20,500	$ 20,901
Jason Wilson Capital
Date	Debit	Credit	Balance
Feb 1		$ 35,000	$ 35,000
Feb 9		$ 16,000	$ 51,000
Interest Income
Date	Debit	Credit	Balance
Feb 1		$        491	$        491
Feb 19		$          36	$        527

					Other Accounts Credit
		Accounts Receivable	Sales Tax Payable	Sales	Accounts Name	Amount	Cash Debit
Date	Description	Credit	Credit	Credit
Feb 3	Danielle Pelzel	$                                600					$              600
Feb 5	Refund				Supplies	$             130	$              130
Feb 7	Cash Sale		$                         464	$    5,800	Cash Over/Shortage	$              -70	$          6,194
Feb 9					Jason Wilson Capital	$       16,000	$        16,000
Feb 12	Keyla Jones	$                                480					$              480
Feb 14	Cash Sale		$                         364	$    4,550	Cash Over/Shortage	$                38	$          4,952
Feb 16	Sadie Nelson	$                                550					$              550
Feb 19	Note Receivable				Note Receivable	$             900	$              936
					Interest Income	$                36
Feb 21	Cash Sale		$                         404	$    5,050			$          5,454
Feb 25	Alfred	$                                680					$              680
Feb 28	Cash Sale		$                         408	$    5,100	Cash Over/Shortage	$              -46	$          5,462
Total		$                            2,310	$                      1,640	$ 20,500		$       16,988	$        41,438
Accountss Receivable Collected in Feb		$                            2,310