Question

In: Accounting

Color Florists, a retail business, had the following cash receipts during January 20--. The sales tax...

Color Florists, a retail business, had the following cash receipts during January 20--. The sales tax is 5%.

Jan. 1 Received payment on account from Ray Boyd, $880.
3 Received payment on account from Clint Hassell, $271.
5 Made cash sales for the week, $2,800, plus tax. Bank credit card sales for the week, $1,200, plus tax. Bank credit card fee is 3%.
8 Received payment on account from Jan Sowada, $912.
11 Ray Boyd returned merchandise for a credit, $40, plus tax.
12 Made cash sales for the week, $3,100, plus tax. Bank credit card sales for the week, $1,900, plus tax. Bank credit card fee is 3%.
15 Received payment on account from Robert Zehnle, $1,100.
18 Robert Zehnle returned merchandise for a credit, $31, plus tax.
19 Made cash sales for the week, $2,230, plus tax.
25 Received payment on account from Dazai Manufacturing, $318.

Beginning general ledger account balances were as follows:

Cash $2,890.75
Accounts Receivable 6,300.00

Beginning customer account balances were as follows:

R. Boyd $1,400
Dazai Manufacturing 318
C. Hassell 815
J. Sowada 1,481
R. Zehnle 2,286
Required:
1. Record the transactions in the cash receipts journal. Total and verify the columns where appropriate at the end of the month. After each entry, post to the appropriate selected accounts. Use the general journal to record sales returns and allowances.
2. Post from the journals to the general ledger and accounts receivable ledger accounts.

Solutions

Expert Solution

Color Florist
CASH RECEIPT JOURNAL
Date Account Credited PR Explanation Cash Dr Account Receivable Cr Sales Cr Sales Tax Payable Cr card fees
1-Jan Ray Boyd Cash receipt on account        880.00      880.00
3-Jan Clint Hassell, Cash receipt on account        271.00      271.00
5-Jan Sales Cash Sales     2,940.00     2,800.00     140.00
5-Jan Sales Credit Card Sales     1,222.20     1,200.00        60.00        37.80
8-Jan Jan Sowada Cash receipt on account        912.00      912.00
12-Jan Sales Cash Sales     3,255.00     3,100.00     155.00
12-Jan Sales Credit Card Sales     1,935.15     1,900.00        95.00        59.85
15-Jan Robert Zehnle Cash receipt on account     1,100.00 1,100.00
19-Jan Sales Cash Sales     2,341.50     2,230.00     111.50
25-Jan Dazai Manufacturing Cash receipt on account        318.00      318.00
Total 15,174.85 3,481.00 11,230.00     561.50        97.65
Color Florist
GENERAL JOURNAL
Date Account Debit Credit
11-Jan Sales       40.00
Sales Tax Payable          2.00
Ray Boyd       42.00
(To record Sales Return)
18-Jan Sales       31.00
Sales Tax Payable          1.55
Robert Zehnle       32.55
(To record Sales Return)
Cash Account
Date Description Debit Date Description Credit
1-Jan Opening Balance 2,890.75
31-Jan Cash Journal 15174.85
Total 18,065.60 Total 0
Sales Account
Date Description Debit Date Description Credit
11-Jan Ray Boyd 40.00 31-Jan Cash Journal 11230
18-Jan Robert Zehnle 31
Total 71.00 Total 11230
Sales Tax Payable
Date Description Debit Date Description Credit
11-Jan Sales - Ray Boyd 2.00 31-Jan Cash Journal 561.5
18-Jan Sales 2.00
Total 4.00 Total 561.5
Credit Card Fees
Date Description Debit Date Description Credit
31-Jan Cash Journal 97.65
Total 97.65 Total 0
Account Receivable
Date Description Debit Date Description Credit
1-Jan Opening Balance 6,300.00 31-Jan Cash Journal 3,481.00
11-Jan Sales Return 42.00
18-Jan Sales Return 32.55
Total 6,300.00 Total 3,555.55
R. Boyd
Date Description Debit Date Description Credit
1-Jan Opening Balance 1,400.00 1-Jan Cash Journal 880.00
11-Jan Sales Return 42.00
Total 1,400.00 Total 922.00
Dazai Manufacturing
Date Description Debit Date Description Credit
1-Jan Opening Balance 318.00 25-Jan Cash Journal 318.00
Total 318.00 Total 318.00
C. Hassell
Date Description Debit Date Description Credit
1-Jan Opening Balance 815.00 3-Jan Cash Journal 271.00
Total 815.00 Total 271.00
J. Sowada
Date Description Debit Date Description Credit
1-Jan Opening Balance 1,481.00 8-Jan Cash Journal 912.00
Total 1,481.00 Total 912.00
R. Zehnle
Date Description Debit Date Description Credit
1-Jan Opening Balance 2,286.00 15-Jan Cash Journal 1,100.00
18-Jan Sales Return 32.55
Total 2,286.00 Total 1132.55

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