Problem

Journalizing, posting, and reporting sales transactions.Super Furniture Mart is a retail s...

Journalizing, posting, and reporting sales transactions.

Super Furniture Mart is a retail store that specializes in modern living room and dining room furniture. Merchandise sales are subject to an 8 percent sales tax. The firm’s credit sales and sales returns and allowances for June are reflected below, along with the general ledger accounts used to record these transactions. The balances shown are for the beginning of the month.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balances for June 1.


2. Record the transactions in a sales journal and a general journal. Use 9 as the page number for the sales journal and 26 as the page number for the general journal.


3. Post the entries from the general journal to the general ledger.


4. Total, prove, and rule the sales journal as of June 30.


5. Post the column totals from the sales journal.


6. Prepare the heading and the Revenue section of the firm’s income statement for the month ended June 30, 2010.

GENERAL LEDGER ACCOUNTS

111

Accounts Receivable, $22,576 Dr.

231

Sales Tax Payable, $4,515 Cr.

401

Sales

451

Sales Returns and Allowances

 

DATE

TRANSACTIONS

June 1

Sold a living room sofa to Christine Berry; issued Sales Slip 1601 for $2,050 plus sales tax of $164.

5

Sold three recliners to Paula Adams; issued Sales Slip 1602 for $1,300 plus sales tax of $104.

9

Sold a dining room set to Patrick Chen; issued Sales Slip 1603 for $7,000 plus sales tax of $560.

11

Accepted a return of a damaged chair from Paula Adams; the chair was originally sold on Sales Slip 1602 of June 5; issued Credit Memorandum 215 for $432, which includes sales tax of $32.

17

Sold living room tables and bookcases to Raul Alvarez; issued Sales Slip 1604 for $4,000 plus sales tax of $320.

23

Sold eight dining room chairs to Kenitra Brown; issued Sales Slip 1605 for $3,800 plus sales tax of $304.

25

Gave Raul Alvarez an allowance for scratches on his bookcases; issued Credit Memorandum 216 for $270, which includes sales taxes of $20; the bookcases were originally sold on Sales Slip 1604 of June 17.

27

Sold a living room sofa and four chairs to Charles Brown; issued Sales Slip 1606 for $3,600 plus sales tax of $288.

29

Sold a dining room table to Rosetta London; issued Sales Slip 1607 for $1,250 plus sales tax of $100.

30

Sold a living room modular wall unit to James Howard; issued Sales Slip 1608 for $3,100 plus sales tax of $248.

Analyze: Based on the beginning balance of the Sales Tax Payable account, what was the amount of total net sales for April and May? (Hint: Sales tax returns are filed and paid to the state quarterly.)

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