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Sales and Cash Receipts Transactions Sourk Distributors is a retail business. The following sales, returns, and...

Sales and Cash Receipts Transactions

Sourk Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax.

Mar. 1 Sale on account No. 33C to Donachie & Co., $1,900 plus sales tax.
3 Sale on account No. 33D to R. J. Kibubu, Inc., $2,170 plus sales tax.
5 Donachie & Co. returned merchandise from Sale No. 33C for a credit (Credit Memo No. 66), $40 plus sales tax.
7 Cash sales for the week were $3,200 plus sales tax.
10 Received payment from Donachie & Co. for Sale No. 33C less Credit Memo No. 66.
11 Sale on account No. 33E to Eck Bakery, $1,190 plus sales tax.
13 Received payment from R. J. Kibubu for Sale No. 33D.
14 Cash sales for the week were $3,700 plus sales tax.
16 Eck Bakery returned merchandise from Sale No. 33E for a credit (Credit Memo No. 67), $31 plus sales tax.
18 Sale on account No. 33F to R. J. Kibubu, Inc., $2,650 plus sales tax.
20 Received payment from Eck Bakery for Sale No. 33E less Credit Memo No. 67.
21 Cash sales for the week were $2,520 plus sales tax.
25 Sale on account No. 33G to Eck Bakery, $2,000 plus sales tax.
27 Sale on account No. 33H to Whitaker Group, $2,110 plus sales tax.
28 Cash sales for the week were $3,450 plus sales tax.

1. Record the transactions in the general journal. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2.

GENERAL JOURNAL PAGE 7
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
Mar. 1 Accounts Receivable/Donachie & Co. 122/√
Sales 401
Sales Tax Payable 231
Mar. 3 Accounts Receivable/R. J. Kibubu, Inc. 122/√
Sales 401
Sales Tax Payable 231
Mar. 5 Sales Returns and Allowances 401.1
Sales Tax Payable 231
Accounts Receivable/Donachie & Co. 122/√
Mar. 7 Cash 101
Sales 401
Sales Tax Payable 231
Mar. 10 Cash 101
Accounts Receivable/Donachie & Co. 122/√
Mar. 11 Accounts Receivable/Eck Bakery 122/√
Sales 401
Sales Tax Payable 231
Mar. 13 Cash 101
Accounts Receivable/R. J. Kibubu, Inc. 122/√
GENERAL JOURNAL PAGE 8
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
Mar. 14 Cash 101
Sales 401
Sales Tax Payable 231
Mar. 16 Sales Returns and Allowances 401.1
Sales Tax Payable 231
Accounts Receivable/Eck Bakery 122/√
Mar. 18 Accounts Receivable/R. J. Kibubu, Inc. 122/√
Sales 401
Sales Tax Payable 231
Mar. 20 Cash 101
Accounts Receivable/Eck Bakery 122/√
Mar. 21 Cash 101
Sales 401
Sales Tax Payable 231
Mar. 25 Accounts Receivable/Eck Bakery 122/√
Sales 401
Sales Tax Payable 231
Mar. 27 Accounts Receivable/Whitaker Group 122/√
Sales 401
Sales Tax Payable 231
GENERAL JOURNAL PAGE 9
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
Mar. 28 Cash 101
Sales 401
Sales Tax Payable 231

2. Beginning general ledger account and customer account balances have been entered below. Post from the journal to the general ledger and accounts receivable ledger accounts. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank. After posting to the general ledger, go to part 1 and complete the posting.

GENERAL LEDGER
ACCOUNT Cash ACCOUNT NO. 101
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 Balance √ 9,526
Mar. 7 J7
Mar. 10 J7
Mar. 13 J7
Mar. 14 J8
Mar. 20 J8 1,251.72 22,582.12
Mar. 21 J8
Mar. 28 J9
ACCOUNT Accounts Receivable ACCOUNT NO. 122
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 Balance √ 1,043
Mar. 1 J7
Mar. 3 J7
Mar. 5 J7
Mar. 10 J7
Mar. 11 J7 1,285.2 4,671.8
Mar. 13 J7
Mar. 16 J8
Mar. 18 J8
Mar. 20 J8
Mar. 25 J8 2,160 6,065
Mar. 27 J8
ACCOUNT Sales Tax Payable ACCOUNT NO. 231
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 J7
Mar. 3 J7
Mar. 5 J7
Mar. 7 J7
Mar. 11 J7 95.2 673.6
Mar. 14 J8
Mar. 16 J8
Mar. 18 J8
Mar. 21 J8
Mar. 25 J8 160 1,540.72
Mar. 27 J8
Mar. 28 J9
ACCOUNT Sales ACCOUNT NO. 401
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 J7
Mar. 3 J7
Mar. 7 J7
Mar. 11 J7
Mar. 14 J8 3,700 12,160
Mar. 18 J8
Mar. 21 J8
Mar. 25 J8
Mar. 27 J8
Mar. 28 J9
ACCOUNT Sales Returns and Allowances ACCOUNT NO. 401.1
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 5 J7
Mar. 16 J8
ACCOUNTS RECEIVABLE LEDGER
NAME Donachie & Co.
ADDRESS 1424 Jackson Creek Road, Nashville, IN 47448-2245
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 1 J7
Mar. 5 J7
Mar. 10 J7
NAME Eck Bakery
ADDRESS 6422 E. Bender Road, Bloomington, IN 47401-7756
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 11 J7
Mar. 16 J8
Mar. 20 J8
Mar. 25 J8
NAME R. J. Kibubu, Inc.
ADDRESS 3315 Longview Avenue, Bloomington, IN 47401-7223
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 3 J7
Mar. 13 J7
Mar. 18 J8
NAME Whitaker Group
ADDRESS 2300 E. National Road, Cumberland, IN 46229-4824
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 1 Balance √ 1,043
Mar. 27 J8

Solutions

Expert Solution

1. Prepare the journal entries as follows:

GENERAL JOURNAL PAGE 7
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
Mar. 1 Accounts Receivable/D & Co. 122/√ $2,052.00
                Sales 401 $1,900.00
                Sales Tax Payable (1,900 × 8%) 231 $152.00
Mar. 3 Accounts Receivable/RJK, Inc. 122/√ $2,343.60
                Sales 401 $2,170.00
                Sales Tax Payable (2,170 × 8%) 231 $173.60
Mar. 5 Sales Returns and Allowances (1,900 × 40 ÷ 152) 401.1 $500.00
             Sales Tax Payable 231 $40.00
             Accounts Receivable/D & Co. 122/√ $540.00
Mar. 7 Cash 101 $3,456.00
             Sales 401 $3,200.00
             Sales Tax Payable (3,200 × 8%) 231 $256.00
Mar. 10 Cash ($2,052 − $540) 101 $1,512.00
                Accounts Receivable/D & Co. 122/√ $1,512.00
Mar. 11 Accounts Receivable/E Bakery 122/√ $1,285.20
                 Sales 401 $1,190.00
                 Sales Tax Payable (1,190 × 8%) 231 $95.20
Mar. 13 Cash 101 $2,343.60
                   Accounts Receivable/RJK, Inc. 122/√ $2,343.60
GENERAL JOURNAL PAGE 8
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
Mar. 14 Cash 101 $3,996.00
                       Sales 401 $3,700.00
                       Sales Tax Payable (3,700 × 8%) 231 $296.00
Mar. 16 Sales Returns and Allowances (1,190 × 31 ÷ 95.20) 401.1 $387.50
Sales Tax Payable 231 $31.00
                         Accounts Receivable/E Bakery 122/√ $418.50
Mar. 18 Accounts Receivable/RJK, Inc. 122/√ $2,862.00
                         Sales 401 $2,650.00
                         Sales Tax Payable (2,650 × 8%) 231 $212.00
Mar. 20 Cash ($1,285.20 − $418.50) 101 $866.70
                      Accounts Receivable/E Bakery 122/√ $866.70
Mar. 21 Cash 101 $2,721.60
                       Sales 401 $2,520.00
                       Sales Tax Payable (2,520 × 8%) 231 $201.60
Mar. 25 Accounts Receivable/E Bakery 122/√ $2,160.00
                        Sales 401 $2,000.00
                        Sales Tax Payable (2,000 × 8%) 231 $160.00
Mar. 27 Accounts Receivable/W Group 122/√ $2,278.80
                       Sales 401 $2,110.00
                       Sales Tax Payable (2,110 × 8%) 231 $168.80
GENERAL JOURNAL PAGE 9
DATE DESCRIPTION POST. REF. DEBIT CREDIT
20--
Mar. 28 Cash 101 $3,726.00
                      Sales 401 $3,450.00
                      Sales Tax Payable (3,450 × 8%) 231 $276.00

2. Prepare the T-accounts as follows:

ACCOUNT Cash ACCOUNT NO.
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 Balance √ $9,526.00
Mar. 7 J7 $3,456.00 $12,982.00
Mar. 10 J7 $1,512.00 $14,494.00
Mar. 13 J7 $2,343.60 $16,837.60
Mar. 14 J8 $3,996.00 $20,833.60
Mar. 20 J8 $866.70 $21,700.30
Mar. 21 J8 $2,721.60 $24,421.90
Mar. 28 J9 $3,726.00 $28,147.90
ACCOUNT Accounts Receivable ACCOUNT NO. 122
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 Balance √ $1,043.00
Mar. 1 J7 $2,052.00 $3,095.00
Mar. 3 J7 $2,343.60 $5,438.60
Mar. 5 J7 $540.00 $4,898.60
Mar. 10 J7 $1,512.00 $3,386.60
Mar. 11 J7 $1,285.20 $4,671.80
Mar. 13 J7 $2,343.60 $2,328.20
Mar. 16 J8 $418.50 $1,909.70
Mar. 18 J8 $2,862.00 $4,771.70
Mar. 20 J8 $866.70 $3,905.00
Mar. 25 J8 $2,160.00 $6,065.00
Mar. 27 J8 $2,278.80 $8,343.80
ACCOUNT Sales Tax Payable ACCOUNT NO. 231
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 J7 $152.00 $152.00
Mar. 3 J7 $173.60 $325.60
Mar. 5 J7 $40.00 $285.60
Mar. 7 J7 $256.00 $541.60
Mar. 11 J7 $95.20 $636.80
Mar. 14 J8 $296.00 $932.80
Mar. 16 J8 $31.00 $901.80
Mar. 18 J8 $212.00 $1,113.80
Mar. 21 J8 $201.60 $1,315.40
Mar. 25 J8 $160.00 $1,475.40
Mar. 27 J8 $168.80 $1,644.20
Mar. 28 J9 $276.00 $1,920.20
ACCOUNT Sales ACCOUNT NO. 401
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 1 J7 $1,900.00 $1,900.00
Mar. 3 J7 $2,170.00 $4,070.00
Mar. 7 J7 $3,200.00 $7,270.00
Mar. 11 J7 $1,190.00 $8,460.00
Mar. 14 J8 $3,700.00 $12,160.00
Mar. 18 J8 $2,650.00 $14,810.00
Mar. 21 J8 $2,520.00 $17,330.00
Mar. 25 J8 $2,000.00 $19,330.00
Mar. 27 J8 $2,110.00 $21,440.00
Mar. 28 J9 $3,450.00 $24,890.00
ACCOUNT Sales Returns and Allowances ACCOUNT NO. 401.1
BALANCE
DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT
20--
Mar. 5 J7 $500.00 $500.00
Mar. 16 J8 $387.50 $887.50
ACCOUNTS RECEIVABLE LEDGER
NAME D & Co.
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 1 J7 $2,052.00 $2,052.00
Mar. 5 J7 $540.00 $1,512.00
Mar. 10 J7 $1,512.00 $0.00
NAME E Bakery
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 11 J7 $1,285.20 $1,285.20
Mar. 16 J8 $418.50 $866.70
Mar. 20 J8 $866.70 $0.00
Mar. 25 J8 $2,160.00 $2,160.00
NAME RJK, Inc.
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 3 J7 $2,343.60 $2,343.60
Mar. 13 J7 $2,343.60 $0.00
Mar. 18 J8 $2,862.00 $2,862.00
NAME W Group
DATE ITEM POST. REF. DEBIT CREDIT BALANCE
20--
Mar. 1 Balance √ $1,043.00
Mar. 27 J8 $2,278.80 $3,321.80

ekkarill92 answered 1 year ago
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