Journalizing, posting, and reporting sales transactions.
Spectra Furniture 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 February 2010 are reflected below, along with the general ledger accounts used to record these transactions. The balances shown are for the beginning of the month.
DATE | TRANSACTIONS |
Feb. 1 | Sold a living room sofa to Julia Cheng; issued Sales Slip 1615 for $3,250 plus sales tax of $260. |
5 | Sold three recliners to Denise dela Hoya; issued Sales Slip 1616 for $2,100 plus sales tax of $168. |
9 | Sold a dining room set to Suzanne Tuttle; issued Sales Slip 1617 for $5,500 plus sales tax of $440. |
11 | Accepted a return of one damaged recliner from Denise dela Hoya that was originally sold on Sales Slip 1616 of February 5; issued Credit Memorandum 702 for $756.00, which includes sales tax of $56.00. |
17 | Sold living room tables and bookcases to Joan Clay; issued Sales Slip 1618 for $5,400 plus sales tax of $432. |
23 | Sold eight dining room chairs to Thomas Muir; issued Sales Slip 1619 for $3,400 plus sales tax of $272. |
25 | Gave Joan Clay an allowance for scratches on her bookcases; issued Credit Memorandum 703 for $432, which includes sales taxes of $32; the bookcases were originally sold on Sales Slip 1618 of February 17. |
27 | Sold a living room sofa and four chairs to Bernard Slaughter; issued Sales Slip 1620 for $3,975 plus sales tax of $318. |
28 | Sold a dining room table to Connie Taylor; issued Sales Slip 1621 for $1,800 plus sales tax of $144. |
28 | Sold a living room modular wall unit to James Walker; issued Sales Slip 1622 for $3,650 plus sales tax of $292. |
INSTRUCTIONS
1. Open the general ledger accounts and enter the balances for February 1.
2. Record the transactions in a sales journal and in a general journal. Use 8 as the page number for the sales journal and 24 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 February 28.
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 February 28, 2010.
GENERAL LEDGER ACCOUNTS
111 | Accounts Receivable, $15,636 Dr. |
231 | Sales Tax Payable, $7,170 Cr. |
401 | Sales |
451 | Sales Returns and Allowances |
Analyze: Based on the beginning balance of the Sales Tax Payable account, what was the amount of net sales for January? (Hint: Sales tax returns are filed and paid to the state quarterly.)
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.