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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

SALES JOURNAL T. M. Maxwell owns a retail business and made the following sales during the month of July 20--. There is a 5% sales tax on all sales.

July 1    Sale No. 101 to Saga, Inc., $1,200, plus sales tax.

8    Sale No. 102 to Vinnie Ward, $2,100, plus sales tax.

15    Sale No. 103 to Dvorak Manufacturing, $4,300, plus sales tax.

21    Sale No. 104 to Vinnie Ward, $1,800, plus sales tax.

24    Sale No. 105 to Zapata Co., $1,600, plus sales tax. (Open a new account for this customer. Address is 789 N. Stafford Dr., Bloomington, IN 47401–6201.)

29    Sale No. 106 to Saga, Inc., $1,450, plus sales tax.

Required

  1. 1. Record the transactions in the sales journal. Total and verify the column totals and rule the columns.
  2. 2. Post the sales journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.

1.

To determine

Prepare the given transactions in the sales journal and verify the total column and rule the column.

Explanation

Sales Journal

Sales journal is one form of special journal book, which records all the sales transactions that are sold to customers on credit. In a single column sales journal, debit aspect of accounts receivable and credit aspect of inventory are recorded, and then posted to individual subsidiary customer account.

Prepare the given transaction in a sales journal:

Table (1)

Working note 1:

Calculate the amount of accounts receivable (debit) on dated 1st July:

Accounts receivable (debit) on dated 1stJuly}=(Sales + 5% on sales tax)=[$1,200+(5%×$1,200)]=[$1,200+$60]=$1,260

Working note 2:

Calculate the amount of accounts receivable (debit) on dated 8th July:

Accounts receivable (debit) on dated 8thAugust}=(Sales + 5% on sales tax)=[$2,100+(5%×$2,100)]=[$2,100+$105]=$2,205

Working note 3:

Calculate the amount of accounts receivable (debit) on dated 15th July:

Accounts receivable (debit) on dated 15thJuly}=(Sales + 5% on sales tax)=[$4,300+(5%×$4,300)]=[$4,300+$215]=$4,515

Working note 4:

2.

To determine

Post the sales journal to the general ledger and the accounts receivable ledger, and use the customer accounts number in accounts receivable ledger.

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