menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

JOURNALIZING SALES TRANSACTIONS Enter the following transactions in a general journal. Use a 5% sales tax rate. Sept. 1 Sold merchandise on account to K. Smith, $1,800 plus sales tax. Sale No. 228. 3 Sold merchandise on account to J. Arnes, $3,100 plus sales tax. Sale No. 229. 5 Sold merchandise on account to M. Denison, $2,800 plus sales tax. Sale No. 230. 7 Sold merchandise on account to B. Marshall, $1,900 plus sales tax. Sale No. 231.

BuyFindarrow_forward

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160
Chapter 10, Problem 5SEB
Textbook Problem
71 views

JOURNALIZING SALES TRANSACTIONS Enter the following transactions in a general journal. Use a 5% sales tax rate.

Sept. 1 Sold merchandise on account to K. Smith, $1,800 plus sales tax. Sale No. 228.
  3 Sold merchandise on account to J. Arnes, $3,100 plus sales tax. Sale No. 229.
  5 Sold merchandise on account to M. Denison, $2,800 plus sales tax. Sale No. 230.
  7 Sold merchandise on account to B. Marshall, $1,900 plus sales tax. Sale No. 231.

To determine

Journalize the transactions related to sales transactions.

Explanation of Solution

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

  • Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
  • Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

Journalize the transactions related to sales transactions.

Transaction on September 1:

DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September1Accounts Receivable, KS1,890
Sales1,800
Sales Tax Payable90
(Record credit sale)

Table (1)

Description:

  • Accounts Receivable, KS is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Working Note 1:

Compute sales tax payable amount.

Sales tax payable = Sales×Sales tax percentage= $1,800×5%= $90

Working Note 2:

Compute accounts receivable amount (Refer to Working Note 1 for value of sales tax payable).

Accounts receivable, KS = Sales+Sales tax payable= $1,800+$90= $1,890

Transaction on September 3:

DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September3Accounts Receivable, JA3,255
Sales3,100
Sales Tax Payable155
(Record credit sale)

Table (2)

Description:

  • Accounts Receivable, JA is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Working Note 3:

Compute sales tax payable amount.

Sales tax payable = Sales×Sales tax percentage= $3,100×5%= $155

Working Note 4:

Compute accounts receivable amount (Refer to Working Note 3 for value of sales tax payable).

Accounts receivable, JA = Sales+Sales tax payable= $3,100+$155= $3,255

Transaction on September 5:

DateAccount Titles and ExplanationPost Ref

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 10 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Show all chapter solutions
add
Ch. 10 - The sales transaction process for a wholesale...Ch. 10 - Prepare journal entries for the following sales...Ch. 10 - The following journal entries are for current...Ch. 10 - On March 24, MS Companys Accounts Receivable...Ch. 10 - Identify the sales documents commonly used in...Ch. 10 - What is the purpose of a credit memo?Ch. 10 - Describe how each of the following accounts is...Ch. 10 - What steps are followed in posting sales from the...Ch. 10 - What steps are followed in posting sales from the...Ch. 10 - What steps are followed in posting sales returns...Ch. 10 - What steps are followed in posting cash receipts...Ch. 10 - What steps are followed in posting cash receipts...Ch. 10 - If the total of the schedule of accounts...Ch. 10 - SALES DOCUMENTS For each document or procedure...Ch. 10 - SALES TRANSACTIONS AND T ACCOUNTS Using T accounts...Ch. 10 - COMPUTING NET SALES Based on the following...Ch. 10 - JOURNALIZING SALES, SALES RETURNS AND ALLOWANCES,...Ch. 10 - JOURNALIZING SALES TRANSACTIONS Enter the...Ch. 10 - JOURNALIZING SALES RETURNS AND ALLOWANCES Enter...Ch. 10 - JOURNALIZING CASH RECEIPTS Enter the following...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE From the accounts...Ch. 10 - SALES TRANSACTIONS J. K. Bijan owns a retail...Ch. 10 - CASH RECEIPTS TRANSACTIONS Zebra Imaginarium, a...Ch. 10 - SALES AND CASH RECEIPTS TRANSACTIONS Sourk...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE Based on the...Ch. 10 - SALES DOCUMENTS Indicate whether each of the...Ch. 10 - SALES TRANSACTIONS AND T ACCOUNTS Using T accounts...Ch. 10 - COMPUTING NET SALES Based on the following...Ch. 10 - JOURNALIZING SALES, SALES RETURNS AND ALLOWANCES,...Ch. 10 - JOURNALIZING SALES TRANSACTIONS Enter the...Ch. 10 - JOURNALIZING SALES RETURNS AND ALLOWANCES Enter...Ch. 10 - JOURNALIZING CASH RECEIPTS Enter the following...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE From the accounts...Ch. 10 - SALES TRANSACTIONS T. M. Maxwell owns a retail...Ch. 10 - CASH RECEIPTS TRANSACTIONS Color Florists, a...Ch. 10 - SALES AND CASH RECEIPTS TRANSACTIONS Paul Jackson...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE Based on the...Ch. 10 - You and your spouse have separate charge accounts...Ch. 10 - Wholesale Health Supply sells a variety of medical...Ch. 10 - Geoff and Sandy Harland own and operate Wayward...Ch. 10 - Enter the following transactions in a general...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
How are inflation and unemployment related in the short run?

Principles of Microeconomics (MindTap Course List)

Give an example of each.

Foundations of Business (MindTap Course List)

Define assets, liabilities, owners equity, revenues, and expenses.

College Accounting (Book Only): A Career Approach

RECAPITALIZATION Tapley Inc. currently has total capital equal to 5 million, has zero debt, is in the 40% feder...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Discuss the difference between budgets and standard costs.

Cornerstones of Cost Management (Cornerstones Series)