Chapter 11 Journalizing Sales and Cash Receipts Using Special Journals.
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Transcript of Chapter 11 Journalizing Sales and Cash Receipts Using Special Journals.
Chapter 11Journalizing Sales and Cash Receipts
Using Special Journals
Sales TaxCustomer: a person or business to whom merchandise or services is sold
Sales Tax: tax on the sale of merchandise or services
Businesses must file reports regarding sales tax
Sales Tax= Price * Sales Tax %
Total= Price + Sales Tax
11.1 Sales Journal-Merchandise on Account
Realization of Revenue- when revenue is recorded at the time goods or services are sold
Sale on account- aka: charge sale
Sales Journal- Sales of Merchandise on Account only
Sales Invoice
AKA: sales ticket or sales slipSeller- sales invoiceCustomer- purchase invoice
Sale on Account
November 3. Sold merchandise on account to Children’s Paradise, $816.00, plus sales tax, $48.96. Sales invoice #76
Journalize:
Date, Account Name, Sale #
Total Amount-A/R Debit
Sales Credit-Merchandise Amount
Sales Tax Credit-Amount of Tax
Totaling Sales Jounral
At the end of the month- prove, rule, total Sales journal
Debits Columns=Credits Columns
11. 1 REVIEW p. 258
Terms ReviewAudit Your Understanding #1-4Work Together #5-6On Your Own #7-8
11.2 Cash Receipts Journal
Cash Sale- sale where cash is receivedCredit Card Sale- sale using a credit card
Cash Receipts Journal
Cash Receipts Journal- Record only cash receipt transactions (cash or cc)
Cash and Credit CardsNovember 3. Recorded cash and credit card sales, $5,460, plus tax $327.60; total $5787.60. Cash Register Tape #4
To Journalize:
Date, Check Mark (no account name needed), Doc #
Credit Sales and Sales Tax
Debit Cash- Total of Sales and Tax
Cash Receipts on Account
November 6. Received cash on account from Fiesta Costumes, $2,162.40, covering S69. R90.
To Journalize:
Date, Account Title (A/R), Doc #
Credit (A/R- decreasing their balance)
Debit Cash- Increasing Cash
Totaling & Proving
Follow the same procedures as the Cash Payments Journal
Debit Columns= Credit Columns
Double Lines show columns prove and are verified!
Proving Cash
Prove Cash at the end of each month
To Calculate:Cash on hand at start of month
+ Total Cash Received (Cash Debit)
=Total
- Cash Paid (Cash Credit-Cash Payments)
=Cash Balance on Hand at end of Month
This total should prove to checkbook balance on next unused check stub
11.2 REVIEW: p. 264
Terms ReviewAudit Your Understanding #1-3Work Together #4-7On Your Own #8-11
Chapter 11 Review
Application Problems 11.1-11.2Test Wednesday March 2.
THE END