Journalizing, posting, and reporting sales transactions.The Furniture Lot is a retail stor...

Journalizing, posting, and reporting sales transactions.

The Furniture Lot 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, 2016.

GENERAL LEDGER ACCOUNTS

111 Accounts Receivable, $24,150 Dr.

231 Sales Tax Payable, $4,515 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 total net sales for April and May? (Hint: Sales tax returns are filed and paid to the state quarterly.)