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Study Guide 10
Perfect Score
Name Identifying Accounting Terms Analyzing Sales and Cash Receipts Analyzing Transactions Recorded in Special Journals Total
14 24 15 53
Your Score
Pts. Pts. Pts. Pts.
Part One—Identifying Accounting Terms Directions: Select the term in Column I that best fits each definition in Column II. Print the letter identifying your choice in the Answers column.
Column II
Column I
Answers
A. batch report
1. A person or business to whom merchandise or services are sold. (p. 270)
1.
G
B. batching out
2. A tax on a sale of merchandise or services. (p. 270)
2.
M
3.
K
C. cash receipts journal
3. A special journal used to record only sales of merchandise on account. (p. 272) 4. A sale in which cash is received for the total amount of the sale at the time of the transaction. (p. 276)
4.
D
D. cash sale
5.
E
E. credit card sale
5. A sale in which a credit card is used for the total amount of the sale at the time of the transaction. (p. 276) 6. A computer used to collect, store, and report all the information of a sales transaction. (p. 276)
6.
H
F. credit memorandum
7.
N
G. customer
7. The report that summarizes the cash and credit card sales of a point-of-sale terminal. (p. 276) 8. A report of credit card sales produced by a point-of-sale terminal. (p. 278)
8.
A
9. The process of preparing a batch report of credit card sales from a point-of-sale terminal. (p. 278)
9.
B
10. A special journal used to record only cash receipt transactions. (p. 278)
10.
C
11. A cash discount on sales taken by a customer. (p. 278)
11.
J
12. Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor’s accounts receivable. (p. 285)
12.
L
13.
I
M. sales tax
13. Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable. (p. 285) 14. A form prepared by the vendor showing the amount deducted for returns and allowances. (p. 285)
14.
F
N. terminal summary
H. point-of-sale (POS) terminal I.
sales allowance
J.
sales discount
K. sales journal L. sales return
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Chapter 10 • 221
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Part Two—Analyzing Sales and Cash Receipts Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false.
Answers 1. Most states do not require a business to collect sales tax from customers. (p. 270)
1.
F
2. Sales tax rates are usually stated as a percentage of sales. (p. 270)
2.
T
3. A sale of merchandise increases the revenue of a business. (p. 271)
3.
T
4. The Realization of Revenue accounting concept is applied when a sale is recorded at the time the sale is made. (p. 271)
4.
T
5. A sale on account is not the same as a charge sale. (p. 271)
5.
F
6. A credit card sale is a sale in which cash is received for the total amount of the sale at the time of the transaction. (p. 276)
6.
F
7. A cash sale is a sale in which a credit card is used for the total amount of the sale at the time of the transaction. (p. 276)
7.
F
8. At the end of the week, all credit card slips are gathered together, sorted by issuing bank, and mailed individually to each of the banks to collect payment. (p. 278)
8.
F
9. All cash receipts, including cash sales and credit card sales, are recorded in the cash receipts journal. (p. 278)
9.
T
10. The total of a terminal summary can be recorded as a single cash sales transaction. (p. 279)
10.
T
11. For cash and credit card sales, the asset account Cash is debited for the total of sales and sales tax, but the revenue account Sales is credited only for the total of sales. (p. 279)
11.
T
12. The revenue account Sales has a normal credit balance. (p. 279)
12.
T
13. The liability account Sales Tax Payable has a normal debit balance. (p. 279)
13.
F
14. The source document for cash received on account from a customer is a receipt. (p. 280)
14.
T
15. When cash is received on account, the cash account balance increases and the accounts receivable account balance increases. (p. 280)
15.
F
16. When a sales discount is taken, a customer pays less cash than the invoice amount previously recorded in the sales account. (p. 281)
16.
T
17. The account Sales Discount increases sales. (p. 282)
17.
F
18. Maintaining a separate account for sales discounts provides business managers with information to evaluate whether a sales discount is a cost-effective method. (p. 282)
18.
T
19. If a customer does not pay the amount owed within the sales discount period, the full invoice amount is due. (p. 282)
19.
T
20. After the cash receipts journal is proved at the end of the month, cash is proved. (p. 283)
20.
T
21. All transactions can be recorded in a special journal. (p. 285)
21.
F
22. Credit may be granted to a customer only when merchandise is returned. (p. 285)
22.
F
23. Sales returns and sales allowances increase the amount of sales. (p. 285)
23.
F
24. The account Sales Returns and Allowances is a contra account. (p. 285)
24.
T
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Name
Date
Class
Part Three—Analyzing Transactions Recorded in Special Journals Directions: In Answers Column l, print the abbreviation for the journal in which each transaction is to be recorded. In Answers Columns 2 and 3, print the letters identifying the accounts to be debited and credited for each transaction. SJ—Sales journal; GJ—General journal; CRJ—Cash receipts journal
Answers Account Titles
Transactions
Journal Debit Credit
A. Accounts Receivable
1–2–3. Sold merchandise on account to Penny Kellar, plus sales tax. (p. 273)
1. SJ
2. A, C
B. Cash
4–5–6. Recorded cash and credit card sales, plus sales tax. (p. 279)
4. CRJ
5.
B
6. E, H
7. CRJ
8.
B
9. A, D
C. Penny Kellar D. Jim Tauras
7–8–9. Received cash on account from Jim Tauras. (p. 280)
E. Sales F. Sales Discount
10–11–12. Received cash on account from Penny Kellar, less sales discount. (p. 282)
G. Sales Returns 13–14–15. Granted credit to Jim Tauras for merchandise and Allowances returned, plus sales tax. (p. 286) H. Sales Tax Payable
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
3. E, H
10. CRJ 11. F, B 12. A, C 13. GJ
14. G, H 15. A, D
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Study Skills Setting Priorities Do you work hard every day but never seem to get your work completed? Do you spend hours on an assignment only to find that it is of little importance? Do you sometimes feel that you waste your time? If you answer yes to these questions, you should take a close look at your priorities. You have only a limited amount of time available, and you will likely never be able to do everything you would like to do. Therefore, you must decide which things are the most important and concentrate on them. Placing a Value on Jobs There may be jobs that you do not enjoy doing, and under ordinary circumstances, you might put them off and complete other work instead. However, the things that you put off may be the most important things that you should do. They should be given a high priority. There may be jobs that you enjoy doing, but these jobs might be of little real value to you in your personal, business, or school life. These activities should receive a low priority. When you decide which jobs to spend your time on, you should look at each one and determine its overall value in relation to the other jobs that you should do. Getting Your Jobs in Order An easy method of setting priorities is to sit down every morning and list the things that you should do during the day. Let’s suppose that your list contains six jobs. When you have decided what should be done, you should rank the jobs in order of importance. The most important should be first, and the least important should be last. You should then begin working at the top of the list. As you do each task, mark it off. Perhaps you will be able to mark off all the items, but you may complete only three or four. This is satisfactory, however, because you used your time on the items of most importance. If you do not complete one or two jobs at the bottom of the list, do not worry. They were the least important. Conclusion You will probably never complete every job you want to do. If you do the most important things every day, however, you will accomplish a great deal. You will be successful because you have set your priorities correctly.
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Date
10-1
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WORK TOGETHER, p. 275
Journalizing sales on account; proving and ruling a sales journal 1., 2. SALES JOURNAL DATE
SALE NO.
ACCOUNT DEBITED
20 – –
1 2
Sept. 1 Adrian Makowski 11 Columbus City Schools
3
28 Swiss Delight
4
30 Totals
PAGE
POST. REF.
9
1
2
3
ACCOUNTS RECEIVABLE DEBIT
SALES CREDIT
SALES TAX PAYABLE CREDIT
104
8 4 8 00
8 0 0 00
4 8 00
105
8 7 5 00
8 7 5 00
106
1 5 4 7 60
1 4 6 0 00
8 7 60
3
3 2 7 0 60
3 1 3 5 00
1 3 5 60
4
1 2
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
2. Col. No. 1 2 3
Column Title
Debit Totals
Accounts Receivable Debit . . . . . . . . . . . . . . Sales Credit . . . . . . . . . . . . . . . . . . . . . . . Sales Tax Payable Credit . . . . . . . . . . . . . .
$3,270.60
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$3,270.60
Chapter 10
Credit Totals
$3,135.00 135.60 $3,270.60
Journalizing Sales and Cash Receipts Using Special Journals • 225
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Journalizing sales on account; proving and ruling a sales journal 1., 2. SALES JOURNAL DATE
ACCOUNT DEBITED
20 – –
SALE NO.
PAGE
POST. REF.
6
1
2
3
ACCOUNTS RECEIVABLE DEBIT
SALES CREDIT
SALES TAX PAYABLE CREDIT
June 5 Peter Gallaher 12 Spann Auto Supply
410
6 8 9 00
6 5 0 00
3 9 00
1
411
6 2 5 40
5 9 0 00
3 5 40
2
3
24 Fleming College
412
5 4 5 00
5 4 5 00
4
30 Totals
1 8 5 9 40
1 7 8 5 00
1 2
3
7 4 40
4
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
2. Col. No. 1 2 3
Debit Totals
Column Title Accounts Receivable Debit . . . . . . . . . . . . . . Sales Credit . . . . . . . . . . . . . . . . . . . . . . . Sales Tax Payable Credit . . . . . . . . . . . . . .
$1,859.40
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,859.40
226 • Working Papers TE
Credit Totals
$1,785.00 74.40 $1,859.40
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 10 . . . . . . . .
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7
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. . . . .
. . . . .
. . . . .
. . . . .
1 2 3 4 5 6 7
Col. No.
$15,223.30
Checkbook balance on the next unused check stub . . . . . . . . . . .
$11,764.96 15,103.52 $26,868.48 8,779.53 $18,088.95 $18,088.95
13
13
Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . Equals cash balance on hand at end of the month
12
12
— $ 6,360.00 8,361.60 501.70
11
11
Date
— . . . . . . $ 119.78 . 15,103.52 . $15,223.30
10
10
Page 227
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Receivable Credit . Sales Credit . . . . . . . . . . . . . Sales Tax Payable Credit . . . Sales Discount Debit . . . . . . Cash Debit . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . .
9
9
Name
2.
8
8
. . . . .
4
3
2
1
7
. . . . .
1 1 9 78 15 1 0 3 52
1 1 9 78 5 8 6 9 22
8 8 6 3 30
3 7 1 00
CASH DEBIT
7
CASH PROOF
5 0 1 70
5 0 1 70
SALES DISCOUNT DEBIT
16
6
Credit Totals
8 3 6 1 60 6 3 6 0 00 8 3 6 1 60
5 9 8 9 00
3 7 1 00
SALES TAX PAYABLE CREDIT
PAGE
6
3.
CREDIT
SALES CREDIT
ACCOUNTS RECEIVABLE CREDIT
6
5
✔
DEBIT
GENERAL
5
5
Debit Totals
31 Totals
4
Column Title
R145
30 Sierra Supply
3
R144
POST. REF.
4
3
3:56 AM
2
1
TS43
ACCOUNT TITLE
Oct. 4 Oakley Company 13 ✔
20 – –
DOC. NO.
2
10-2
1
CASH RECEIPTS JOURNAL
11/1/07
DATE
1., 2., 4.
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WORK TOGETHER, p. 284
Journalizing Sales and Cash Receipts Using Special Journals • 227
228 • Working Papers TE
1 2 3 4 5 6 7
Col. No.
2.
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
Credit Totals
CASH PROOF
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Receivable Credit . Sales Credit . . . . . . . . . . . . . Sales Tax Payable Credit . . . Sales Discount Debit . . . . . . Cash Debit . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . .
— . . . . . . $ 29.18 . 5,298.67 . $ 5,327.85
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . . Checkbook balance on the next unused check stub . . . . . . . . . . .
Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . Equals cash balance on hand at end of the month
$ 2,848.10 5,298.67 $ 8,146.77 4,284.25 $ 3,862.52 $ 3,862.52
Page 228
$ 5,327.85
— $ 1,884.00 3,254.30 189.55
13
11
11
13
10
10
12
9
9
12
8
8
4
3
2
1
7
2 9 18 5 2 9 8 67
2 9 18 1 4 2 9 82
3 4 4 3 85
4 2 5 00
7
Debit Totals
7 CASH DEBIT
17
6
1 8 9 55
1 8 9 55
SALES DISCOUNT DEBIT
PAGE
6
3.
3 2 5 4 30 1 8 8 4 00 3 2 5 4 30
1 4 5 9 00
4 2 5 00
SALES TAX PAYABLE CREDIT
6
5
✔
CREDIT
SALES CREDIT
ACCOUNTS RECEIVABLE CREDIT
5
5
. . . . . . . .
30 Totals
4
R313
TS48
R312
DEBIT
GENERAL
4
3
3:56 AM
Column Title
27 Cooley Used Cars
3
Nov. 2 Wakeman Auto 13 ✔
ACCOUNT TITLE
POST. REF.
2
11/1/07
2
1
20 – –
DOC. NO.
1
CASH RECEIPTS JOURNAL
10-2
DATE
1., 2., 4.
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10-3
Date
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WORK TOGETHER, p. 287
Journalizing sales returns and allowances using a general journal 1. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1 2 3 4 5
June 3 Sales Returns and Allowances
PAGE DOC. NO.
CM41
Sales Tax Payable
POST. REF.
DEBIT
Accounts Receivable/Westfall High School
CREDIT
4 5 7 00
1
3 6 56
2
Accounts Receivable/Wilbanks and Associates 6 Sales Returns and Allowances
6
4 9 3 56 CM42
6 7 00
3 4
6 7 00
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
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19
19
20
20
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21
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22
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23
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25
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Journalizing sales returns and allowances using a general journal 1. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1 2 3 4 5
July 3 Sales Returns and Allowances
PAGE DOC. NO.
CM86
POST. REF.
DEBIT
Sales Tax Payable Accounts Receivable/Karen's Fine Gifts
CREDIT
4 6 00
1
4 6 00
Accounts Receivable/Carver High School 4 Sales Returns and Allowances
7
CM87
2
4 2 5 00
3
2 5 50
4
4 5 0 50
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
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17
17
18
18
19
19
20
20
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23
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24
25
25
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Date
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APPLICATION PROBLEM, p. 289
Journalizing sales on account; proving and ruling a sales journal 1., 2. SALES JOURNAL DATE
SALE NO.
ACCOUNT DEBITED
20 – –
1 2
Sept. 2 Ketchum Clothing 5 Norton Industries
PAGE
POST. REF.
10
1
2
3
ACCOUNTS RECEIVABLE DEBIT
SALES CREDIT
SALES TAX PAYABLE CREDIT
134
4 8 4 95
4 5 7 50
2 7 45
1
135
3 6 5 70
3 4 5 00
2 0 70
2
3
10 Jackson City Schools
136
4 2 6 00
4 2 6 00
4
17 Riley & Slay, CPAs
137
5 5 3 32
5 2 2 00
5
23 Meadowbrook Church
138
4 5 3 00
4 5 3 00
6
30 Tang Construction
139
5 4 2 72
5 1 2 00
3 0 72
6
7
30 Totals
2 8 2 5 69
2 7 1 5 50
1 1 0 19
7
3
3 1 32
4 5
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
2. Col. No. 1 2 3
Column Title
Debit Totals
Accounts Receivable Debit . . . . . . . . . . . . . Sales Credit . . . . . . . . . . . . . . . . . . . . . . . Sales Tax Payable Credit . . . . . . . . . . . . . .
$2,825.69
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,825.69
Chapter 10
Credit Totals
$2,715.50 110.19 $2,825.69
Journalizing Sales and Cash Receipts Using Special Journals • 231
. . . . . . . .
. . . . . . . .
R288
31
31 Totals
10
11
2 0 1 40
Credit Totals
2 3 6 96
3.
2 0 4 30
2 1 0 0 00
3 1 8 0 00
2 3 7 2 00
2 6 5 0 00
2 5 3 4 00
6 9 3 82
1 0 4 25
1 7 0 80
1 3 2 43
1 4 0 80
1 4 5 54
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Receivable Credit . Sales Credit . . . . . . . . . . . . . Sales Tax Payable Credit . . . Sales Discount Debit . . . . . . Cash Debit . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . .
— . . . . . .$ 8.12 . 14,822.56 . $14,830.68 $14,830.68
— $ 1,300.86 12,836.00 693.82
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . . Checkbook balance on the next unused check stub . . . . . . . . . . .
Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . Equals cash balance on hand at end of the month
$ 2,548.25 14,822.56 $17,370.81 15,485.25 $ 1,885.56 $ 1,885.56
Page 232
1 2 3 4 5 6 7
Col. No.
2.
14
14
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10
2 2 0 4 25
13
. . . . .
9
1 9 7 37
11
8
7
2 3 6 96 3 3 5 0 80
6
5
4
3
2
1
2 5 0 4 43
2 0 0 21
2 7 9 0 80
3 1 2 60
2 6 7 9 54
3 4 5 60
8 12 14 8 2 2 56
4 03
4 09
7 CASH DEBIT
15
13
CASH PROOF
1 3 0 0 86 12 8 3 6 00
3 1 2 60
3 4 5 60
SALES DISCOUNT DEBIT
PAGE
12
Debit Totals
TS32
R292
TS31
R291
TS30
R290
CREDIT
SALES TAX PAYABLE CREDIT
6
12
. . . . . . . .
30 JGN Industries
9
. . . . . . . .
24
8
. . . . . . . .
24 Kelly Modeling Agency
7
. . . . . . . .
17
6
. . . . . . . .
15 Lambert News
5
TS29
DEBIT
SALES CREDIT
ACCOUNTS RECEIVABLE CREDIT
5
3:56 AM
Column Title
10
4
R289
4
8 WXGS Television
4
TS28
4
Aug. 1 Reader Advertising 3
ACCOUNT TITLE
4
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3
2
1
DATE
20 – –
GENERAL
4
3
4
POST. REF.
2
4
DOC. NO.
1
CASH RECEIPTS JOURNAL
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4
1., 2., 4.
10-2
4
4
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Journalizing sales returns and allowances using a general journal 1. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1 2 3 4 5 6 7 8
July 2 Sales Returns and Allowances
PAGE DOC. NO.
CM61
Sales Tax Payable
POST. REF.
DEBIT
1
1 5 18
2
2 6 8 18 CM62
Sales Tax Payable
4
1 4 10
5
2 4 9 10
Accounts Receivable/Jefferson School
CM63
3
2 3 5 00
Accounts Receivable/Allergy Associates 12 Sales Returns and Allowances
CREDIT
2 5 3 00
Accounts Receivable/Tahai Industries 4 Sales Returns and Allowances
14
1 3 4 25
6 7
1 3 4 25
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
Chapter 10
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MASTERY PROBLEM, p. 290
Journalizing sales and cash receipts transactions; proving and ruling journals 1., 2., 3. SALES JOURNAL DATE
ACCOUNT DEBITED
SALE NO.
2
POST. REF.
✔
20 – –
1
PAGE
Oct. 24 Brought Forward 27 County Hospital
3
30 Southeastern University
4
31 Totals
19
1
2
3
ACCOUNTS RECEIVABLE DEBIT
SALES CREDIT
SALES TAX PAYABLE CREDIT
1 4 9 6 6 70 1 4 5 2 1 55
4 4 5 15
1
1 9 58
2
443
5 0 9 08
4 8 9 50
444
3 6 4 3 50
3 6 4 3 50
1 9 1 1 9 28 1 8 6 5 4 55
3
4 6 4 73
4
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
2. Col. No. 1 2 3
Debit Totals
Column Title Accounts Receivable Debit . . . . . . . . . . . . . Sales Credit . . . . . . . . . . . . . . . . . . . . . . . Sales Tax Payable Credit . . . . . . . . . . . . . .
$19,119.28
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$19,119.28
234 • Working Papers TE
Credit Totals
$18,654.55 464.73 $19,119.28
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
29 Summit Lodge
4
Chapter 10 . . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
1 2 3 4 5 6 7
Col. No.
$43,777.59
— $13,981.49 28,701.12 1,094.98
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . . Checkbook balance on the next unused check stub . . . . . . . . . . .
Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . Equals cash balance on hand at end of the month
$ 4,483.25 43,750.47 $48,233.72 39,315.22 $ 8,918.50 $ 8,918.50
Date
— . . . . . .$ 27.12 . 43,750.47 . $43,777.59
14
14
. . . . . . . .
13
13
Page 235
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Receivable Credit . Sales Credit . . . . . . . . . . . . . Sales Tax Payable Credit . . . Sales Discount Debit . . . . . . Cash Debit . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . .
12
12
Name
4.
11
11
7
6
5
4
3
2
1
10
CASH PROOF
2 7 12 43 7 5 0 47
1 2 7 4 22
4 6 7 24
4 4 4 1 60
2 7 12 1 3 2 8 88
36 2 3 8 53
10
Credit Totals
4 2 22
7 CASH DEBIT
20
9
5.
1 2 3 2 00
1 2 6 60
13 9 8 1 49 28 7 0 1 12 1 0 9 4 98
4 6 7 24
4 3 1 5 00
9 2 6 16
SALES DISCOUNT DEBIT
PAGE
9
✔
✔
1 3 5 6 00
12 1 5 8 25 23 1 5 4 12
SALES TAX PAYABLE CREDIT
6
8
Debit Totals
TS45
R294
TS44
R293
✔
CREDIT
SALES CREDIT
ACCOUNTS RECEIVABLE CREDIT
5
8
Column Title
31 Totals
6
7
31
5
✔
28
✔
Oct. 24 Brought Forward 26 Slumber Inns
DEBIT
GENERAL
4
3
3:56 AM
3
2
1
ACCOUNT TITLE
POST. REF.
2
11/1/07
20 – –
DOC. NO.
1
CASH RECEIPTS JOURNAL
10-4
DATE
1., 4., 5., 6.
BTE_Ch10-225-248.qxd
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Class
MASTERY PROBLEM (continued)
Journalizing Sales and Cash Receipts Using Special Journals • 235
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MASTERY PROBLEM (concluded)
1. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1 2 3
Oct. 29 Sales Returns and Allowances Sales Tax Payable Accounts Receivable/Slumber Inns
PAGE DOC. NO.
CM54
POST. REF.
DEBIT
14 CREDIT
1 2 4 00
1
4 96
2
1 2 8 96
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
236 • Working Papers TE
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Page 237
Name
Date
10-5
Class
CHALLENGE PROBLEM, p. 291
Journalizing transactions; proving and ruling special journals 1., 2., 5. SALES JOURNAL DATE
SALE NO.
ACCOUNT DEBITED
20 – –
1 2
May 4 First National Bank 14 Jackson Public Schools
3
23 SDR Investment Trust
4
31 Totals
PAGE
POST. REF.
5
1
2
3
ACCOUNTS RECEIVABLE DEBIT
SALES CREDIT
SALES TAX PAYABLE CREDIT
567
5 8 9 68
5 4 6 00
4 3 68
568
4 5 0 00
4 5 0 00
569
1 5 7 2 48
1 4 5 6 00
1 1 6 48
3
2 6 1 2 16
2 4 5 2 00
1 6 0 16
4
1 2
5
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
3. Col. No. 1 2 3
Column Title
Debit Totals
Accounts Receivable Debit . . . . . . . . . . . . . Sales Credit . . . . . . . . . . . . . . . . . . . . . . . Sales Tax Payable Credit . . . . . . . . . . . . . .
$2,612.16
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,612.16
Chapter 10
Credit Totals
$2,452.00 160.16 $2,612.16
Journalizing Sales and Cash Receipts Using Special Journals • 237
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Page 238
CHALLENGE PROBLEM (continued)
1., 2., 5. PURCHASES JOURNAL DATE
ACCOUNT CREDITED
20 – –
1 2
May 3 Angelo Lawn Supplies 7 Forde Collectibles
PAGE PURCH. POST. NO. REF.
5
PURCHASES DR. ACCTS. PAY. CR.
91
1 3 4 0 00
1
92
1 3 0 0 00
2
3
16 Tom's Sod Farm
93
2 9 0 0 00
3
4
23 LawnScapes, Inc.
94
4 4 8 8 00
4
5
31 Totals
1 0 0 2 8 00
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
238 • Working Papers TE
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
Chapter 10
8 7 5 3 60
3. Column Title
.......... Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10,928.05
8,753.60
$ 2,174.45 $ 20.80 10,907.25 $10,928.05
—
Date
...........
.......... .......... ..........
Credit Column Totals
Page 239
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Payable Debit . . . . . Purchases Discount Credit . . . Cash Credit . . . . . . . . . . . . .
Debit Column Totals
16
14
16
2 0 80 1 0 9 0 7 25
15
31 Totals
15
14
Name
2 1 7 4 45
13
1 20
Cash Short and Over
13
12
12
9 6 00
Advertising Expense
11
Miscellaneous Expense
Supplies—Store
10
11
9
8
7
6
1 0 5 00
3 6 1 60
1 0 2 00
8 1 60
1 0 1 9 20
5
4
3
2
10
7 4 40
352
31 Supplies—Office
9
2 0 80
8 9 40
3 5 45
7 6 3 2 00
1 8 6 00
1
8 5 00
1 0 2 00
350
17 Office Mart
7
351
349
11 Forde Collectibles
6
25 Advertising Expense
8 1 60
8 9 40
348
5 Purchases
5
5 CASH CREDIT
8
1 4 0 0 00
PAGE
3:56 AM
8
1 0 4 0 00
3 5 45
347
5 Supplies—Office
4
7 6 3 2 00
346
4 Northeast Nurseries
3
1 8 6 00
345
1 4 0 0 00
344
CREDIT
PURCHASES DISCOUNT CREDIT
ACCOUNTS PAYABLE DEBIT
3 Utilities Expense
May 1 Rent Expense
DEBIT
GENERAL
4
3
2
1
ACCOUNT TITLE
POST. REF.
2
11/1/07
20 – –
CK. NO.
1
CASH PAYMENTS JOURNAL
10-5
DATE
1., 2., 5.
BTE_Ch10-225-248.qxd
SECOND REVISED
Class
CHALLENGE PROBLEM (continued)
Journalizing Sales and Cash Receipts Using Special Journals • 239
240 • Working Papers TE . . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
Debit Totals
Credit Totals
CASH PROOF
1 2 3 4 5 6 7
Col. No.
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Receivable Credit . Sales Credit . . . . . . . . . . . . . Sales Tax Payable Credit . . . Sales Discount Debit . . . . . . Cash Debit . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . .
— . . . . . .$ 10.91 . 16,849.09 . $16,860.00
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . . Checkbook balance on the next unused check stub . . . . . . . . . . .
Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . Equals cash balance on hand at end of the month
$ 2,464.60 16,849.09 $19,313.69 10,907.25 $ 8,406.44 $ 8,406.44
Page 240
$16,860.00
— $ 3,480.97 12,515.00 864.03
14
14
3.
13
13
Column Title
9
8
7
6
5
4
3
2
12
1 0 91 16 8 4 9 09
8 1 7 45
2 3 4 5 64
2 9 2 6 25
5 8 9 68
2 7 3 8 23
3 4 2 2 70
5 3 4 74
1
12
8 6 4 03
4 9 45
1 8 4 25
1 8 4 23
2 0 6 70
1 0 91
7 CASH DEBIT
3 4 7 4 40
9
11
4.
7 6 8 00 3 4 8 0 97 12 5 1 5 00
2 3 4 5 64
2 7 4 2 00
2 5 5 4 00
3 2 1 6 00
2 3 9 40
SALES DISCOUNT DEBIT
PAGE
11
✔
✔
5 8 9 68
5 4 5 65
3 2 3 5 00
SALES TAX PAYABLE CREDIT
6
10
31 Totals
9
TS27
R492
TS26
R491
CREDIT
SALES CREDIT
ACCOUNTS RECEIVABLE CREDIT
5
10
31
8
. . . . . . . .
29 Slippery Rock Inn
7
✔
27
6
. . . . . . . .
22 First National Bank
5
TS25
✔ ✔
✔
DEBIT
GENERAL
4
3
3:56 AM
. . . . . . . .
20
4
TS24
R490
TS23
POST. REF.
2
11/1/07
✔
13
✔ ✔
May 6 ✔ 7 Houston Landscaping
ACCOUNT TITLE
3
2
1
20 – –
DOC. NO.
1
CASH RECEIPTS JOURNAL
10-5
DATE
1., 2., 5.
BTE_Ch10-225-248.qxd
SECOND REVISED
CHALLENGE PROBLEM (continued)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Page 241
Name
Date
10-5
Class
CHALLENGE PROBLEM (concluded)
1. GENERAL JOURNAL DATE
ACCOUNT TITLE
20 – –
1 2 3 4 5 6 7 8 9 10 11 12
May 3 Sales Returns and Allowances
PAGE DOC. NO.
CM67
Sales Tax Payable
POST. REF.
DEBIT
1
1 8 80
2
2 5 3 80 M43
1 2 0 00
M44
8 1 60
10 Accounts Payable/Forde Collectibles
DM23
2 6 0 00
Purchases Returns and Allowances 29 Sales Returns and Allowances Sales Tax Payable Accounts Receivable/SDR Investment Trust
7 8
2 6 0 00 CM68
5 6
8 1 60
Accounts Payable/Office Mart
3 4
1 2 0 00
Accounts Payable/Mosby Store Supplies 8 Supplies—Office
CREDIT
2 3 5 00
Accounts Receivable/Slippery Rock Inn 4 Supplies—Store
7
9
4 5 00
10
3 60
11
4 8 60
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
Chapter 10
Journalizing Sales and Cash Receipts Using Special Journals • 241
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Page 242
USING SOURCE DOCUMENTS, p. 293 Journalizing sales and cash receipts transactions; proving and ruling journals NO.
658
DATE:
November 25 Putt-A-Round On Account
FROM: FOR:
1
Form
20--
$ 150.00 $ 3.00 $ 147.00
On account Sales discount Cash received
GOLFER'S PARADISE 142 Glade Road Crossville, TN 38555-8102 Sold to:
CAT. NO.
Form
2
NO. 443
Daniel Pearson 2345 Lakeview Drive Crossville, TN 38555-5819
DESCRIPTION
2432 9 degree titanium driver 745 practice golf balls, dz.
DATE: TERMS: CUST. NO.
QUANTITY
1 5
UNIT PRICE
$
11/27/-30 days 480 TOTAL
439.50 $ 439.50 10.00 50.00 SUBTOTAL TAX TOTAL
$ 489.50 39.16 $ 528.66
Serving Crossville and Fairfield Glade With All Your Recreational Equipment
242 • Working Papers TE
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Page 243
Name
Date
Class
USING SOURCE DOCUMENTS (continued)
Form
3
54 11/27/-18:24
CODE: DATE: TIME: Credit Card Sales Sales Tax Total
034
MasterCard Sales Sales Tax Total
042
Cash Sales Sales Tax Total
152
989.95 79.20 1,069.15
NO.
659
DATE:
November 28 Mary Ann Ingram On Account
FROM: FOR:
806.09 64.49 870.58 1,894.44 151.56 2,046.00
Totals Sales Sales Tax Total
Form
4
20- -
On account Sales discount
$ 420.48
Cash received
$ 420.48
3,690.48 295.25 3,985.73 CREDIT MEMORANDUM NO. 63
Form
5
DATE November 29, 20- -
TO
GOLFER'S PARADISE
Nelson Lang 354 Lang Drive Crossville, TN 38555-2615
142 Glade Road Crossville, TN 38555-8102
ACCOUNT NO. 340 QUANTITY
CAT. NO.
2
643
DESCRIPTION
UNIT PRICE
$130.00 $260.00
golf bag
SUBTOTAL SALES TAX TOTAL
Chapter 10
TOTAL
$260.00 20.80 $280.80
Journalizing Sales and Cash Receipts Using Special Journals • 243
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SECOND REVISED
Page 244
USING SOURCE DOCUMENTS (continued) GOLFER'S PARADISE 142 Glade Road Crossville, TN 38555-8102 Sold to:
CAT. NO.
Form
6
NO. 444
Janice Adams 594 Eagles Nest Road Crossville, TN 38555-7364
DESCRIPTION
DATE: TERMS: CUST. NO.
QUANTITY
BG-34 oversized irons, graphite shafts
UNIT PRICE
1
$
11/29/-30 days 140 TOTAL
405.50 $ 405.50
SUBTOTAL TAX TOTAL
$ 405.50 32.44 $ 437.94
Serving Crossville and Fairfield Glade With All Your Recreational Equipment
Form
55 11/30/-18:45
CODE: DATE: TIME: Credit Card Sales Sales Tax Total
005
MasterCard Sales Sales Tax Total
007
Cash Sales Sales Tax Total
062
Totals Sales Sales Tax Total
244 • Working Papers TE
7
251.05 20.08 271.13 315.15 25.21 340.36 612.15 48.97 661.12 1,178.35 94.26 1,272.61
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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Page 245
Name
Date
Class
USING SOURCE DOCUMENTS (continued) 1., 2., 3. SALES JOURNAL DATE
SALE NO.
ACCOUNT DEBITED
(2)
3
29 Janice Adams
(6)
4
30 Totals
2
POST. REF.
✔
20 – –
Nov. 24 Brought Forward 27 Daniel Pearson
1
PAGE
18
1
2
3
ACCOUNTS RECEIVABLE DEBIT
SALES CREDIT
SALES TAX PAYABLE CREDIT
8 7 2 6 89
6 1 5 4 25
2 5 7 2 64
1
S443
5 2 8 66
4 8 9 50
3 9 16
2
S444
4 3 7 94
4 0 5 50
3 2 44
3
9 6 9 3 49
7 0 4 9 25
2 6 4 4 24
4
5
5
6
6
2. Col. No. 1 2 3
Column Title
Debit Totals
Accounts Receivable Debit . . . . . . . . . . . . . Sales Credit . . . . . . . . . . . . . . . . . . . . . . . Sales Tax Payable Credit . . . . . . . . . . . . . .
$9,693.49
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$9,693.49
Chapter 10
Credit Totals
$7,049.25 2,644.24 $9,693.49
Journalizing Sales and Cash Receipts Using Special Journals • 245
246 • Working Papers TE
1 2 3 4 5 6 7
Col. No.
4.
8
7
General Debit . . . . . . . . . . . . General Credit . . . . . . . . . . . Accounts Receivable Credit . Sales Credit . . . . . . . . . . . . . Sales Tax Payable Credit . . . Sales Discount Debit . . . . . . Cash Debit . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . .
Column Title
30 Totals
✔
. . . . . . . .
. . . . . . . .
. . . . . . . .
(7)
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
✔
— . . . . . . $ 3.00 . 51,714.07 . $51,717.07
Debit Totals
TS55
$51,717.07
— $16,058.72 33,016.99 2,641.36
Credit Totals
DEBIT
CREDIT
SALES CREDIT
ACCOUNTS RECEIVABLE CREDIT
SALES TAX PAYABLE CREDIT
5
CASH PROOF . . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
Checkbook balance on the next unused check stub . . . . . . . . . . .
. . . . .
8
7
6
5
4
3
2
1
$ 2,551.18 51,714.07 $54,265.25 49,158.84 $ 5,106.41 $ 5,106.41
3 00 51 7 1 4 07
4 2 0 48
3 9 8 5 73
16 0 5 8 72 33 0 1 6 99 2 6 4 1 36
2 9 5 25
1 4 7 00
1 2 7 2 61
1 1 7 8 35
3 6 9 0 48
7 CASH DEBIT
24
45 8 8 8 25
PAGE
3 00
SALES DISCOUNT DEBIT
6
9 4 26
4 2 0 48
1 5 0 00
15 4 8 8 24 28 1 4 8 16 2 2 5 1 85
4
3
Cash on hand at the beginning of the month . . . . Plus total cash received during the month . . . . . . Equals total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less total cash paid during the month . . . . . . . . . Equals cash balance on hand at end of the month
5.
GENERAL
2
3:56 AM
6
30
R659
28 Mary Ann Ingram (4)
4
✔
✔
POST. REF.
1
CASH RECEIPTS JOURNAL
11/1/07
5
TS54
(3)
R658
27
✔
Nov. 24 Brought Forward 25 Putt-A-Round (1)
ACCOUNT TITLE
DOC. NO.
3
2
1
20 – –
DATE
1., 4., 6.
BTE_Ch10-225-248.qxd Page 246
SECOND REVISED
USING SOURCE DOCUMENTS (continued)
COPYRIGHT © SOUTH-WESTERN CENGAGE LEARNING
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SECOND REVISED
Page 247
Name
Date
Class
USING SOURCE DOCUMENTS (concluded) 1. GENERAL JOURNAL DATE 1 2 3
DOC. NO.
ACCOUNT TITLE
20 – –
Nov. 29 Sales Returns and Allowances Sales Tax Payable Accounts Receivable/Nelson Lang
PAGE
(5)
CM63
POST. REF.
DEBIT
15 CREDIT
2 6 0 00
1
2 0 80
2
2 8 0 80
3
4
4
5
5
6
6
Chapter 10
Journalizing Sales and Cash Receipts Using Special Journals • 247
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SECOND REVISED