Sales & Cash Receipts Using Special Journals

Mr. Calkins

Accounting I

Spring 2008

SALES & CASH RECEIPTS USING SPECIAL JOURNALS

PART “A”

DIRECTIONS: Identify the letter of choice that bests completes the statement or answers that best fit selections.

A. Cash Receipts JournalB. FootingC. Sales Journal

D. Schedule A/RE. Special Journal

1.The ______is a special journal used to record only the sale of merchandise on account.

2. A ______is used for journalizing a specific kind of business transaction.

3. A is a column total written in small pencil figures.

4. All transactions involving incoming cash are recorded in the ______.

5. A ______lists all the accounts in the accounts receivable subsidiary ledger and balances.

PART “B” ACCOUNTING FOR SALES & CASH RECEIPTSDIRECTIONS: Indicate whether the sentence or statement is True or False (with T/F) to the right of the number.

All special journals have a special amount columns in which debits/credits to frequently used accounts are entered.
The use of special amount columns eliminates the need to post individual amounts to general ledger accounts.
An Account number in parantheses under a column total in a special journal indicates that the total has been posted to the general ledger account whose number is shown.
Footings are always completed in pencil, and column totals are written in ink.
a check mark in the posting reference column of the sales journal indicates that the transaction has been posted to the accounts receivable subsidiary ledger.
When posting from the sales journal to the accounts receivable subsidiary ledger write the letter “S” plus the page number on which the transaction was recorded in the posting reference column of the subsidiary ledger account.
When a special journal page is filled and there are additional transactions to record, write the phrase “Brought Forward” on the last line of the filled journal page.
A cash sale of merchandise is recorded in the sales journal.
The General Credit column in the cash receipts journal is used for recording credits to accounts for which there are no special amount columns.
When cash sales and bankcard sales transactions are recorded in the cash receipts journal, a check mark is placed in the Posting Reference column to indicate the amounts are not to be posted individually.
Proving the equality of debits and credits in the cash receipts journal does not prove the complete accuracy of the recorded transactions.
A check mark under the double rule in the General credit column of the cash receipts journal indicates the column total is not posted anywhere.
On a schedule of accounts receivable, only those accounts with balances are listed.
To prove the accounts receivable subsidiary ledger, the total of the schedule of accounts receivable is compared with the balance of the accounts receivable controlling account in the general ledger.

PART “C” USING THE SALES & CASH RECEIPTS SPECIAL JOURNALS

DIRECTIONS::Identify the letter of choice that best completes the statement.

Special journals (A) Simplify the posting process, (B) simplify the recording process, (C) organize a business transactions, (D) all of the above.
The value of merchandise sold is recorded in the sales journal in the (A) Sales Tax Payable Credit column, (B) Sales Credit Column, (C) Customer’s Account Debited column, (D) Accounts Receivable debit column.
Journal entries should be posted from the Accounts Receivable debit column in the sales to the customer’s accounts (A) quarterly, (B) daily, (C) yearly, (D) monthly.
The number of postings from the sales journal to the general ledger depends upon (A) the number of charge customers affected by each transaction, (B) the balance of the charge customer’s accounts, (C) the number of special amount columns in the sales journals, (D) the dates of the transactions.
If a charge customer owes $600 and is given a 3% cash discount of $18 the amount recorded in the Account Receivable Credit column of the cash receipts journal is (A) $18, (B) $582, (C) $600, (D) $618.
Every transaction recorded in the cash receipts journal requires a (A) credit to the A/R, (B) a debit to Cash in Bank, (C) a credit to Cash in Bank, (D) a debit to A/R
The total of the special amount columns in the sales journal and the cash receipts journal are posted (A) at the end of the month, (B) at the end of the week, (C) once every two week, (D) on a daily basis.

PART “D” Thinking Critically

DIRECTION::The BellTower Shoppes is a merchandising business that uses special journal plus a general journal to record its transactions. Indicate in the space provide which journal the transactions would be applied to.

The receipt of a check from a charge customer Jan Hun as a payment on account.

The purchase of office supplies for cash from Metro Office Supplies.

The payment of the payroll for the week ended June 14.

The purchase of merchandise on account from International Imports.

The sale of merchandise on account to Susan Wright.

The payment of the rent for the month.

The issuance of a debit memo to Plymouth Glassware, a supplier, for unsatisfactory merchandise for which a purchase allowance was given.

An entry to correct an error made when a sale on account was journalized and posted to the wrong customer’s account.

The sale of merchandise for cash to Michael Earl.

The purchase of a new office desk on account from Metro Office Supplies.

Recording/Posting Sales & Cash Receipts

Bab’s Buckboards had the following sales and cash transactions for the month of May. Post to the Subsidiary Ledgers provided and open the general ledger accounts with the amounts provided:

INSTRUCTIONS:

1)Record the sales and cash receipts for May on the sales and purchases journal provided.

2)Post to the customer accounts in the A/R subsidiary ledgers on a daily basis.

3)Post from the General Credit column of the cash receipts journal on a daily basis.

4)Foot, prove, total and rule both journals.

5)Post the column totals of the sales journal to the general ledger accounts named in the column headings.

6)Post the column totals from the cash receipts journal to the general ledger accounts named in the headings.

7)Prepare a schedule of accounts receivable.

SALES JOURNAL

PAGE

DATE / SALES
SLIP
NO. / CUSTOMER’S ACCOUNT
DEBITED / POST
REF / SALES
CREDIT / SALES
TAX PAYABLE
CREDIT / ACCOUNTS
RECEIVABLE
DEBIT

ACCOUNT RECEIVABLE SUBSIDIARY LEDGER

NAMELEE ADKINS

ADDRESS720 DOGWOOD LANE, SEATTLE, WA98101

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE

NAMEILYA BODONSKI

ADDRESS20 MAPLEWOOD TERRACE, LAKEWOOD 98259

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE

NAMEJAVA SHOPS INC.

ADDRESS449 COUNTRY PLACE, AUBURN , WA98002

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE

NAMEKATZ PROPERTIES

ADDRESS103 PROSPECT POINT BELLEVUE, WA 98009

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
2008
MAY / 1 / BALANCE / 500.00

NAMESABA NADAL

ADDRESS943 PEACHTREESPOKANE, WA 99210

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE

NAMEROLLING HILLS PHARMACIES

ADDRESS16 MEADOW LANE TACOMA, WA 98402

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
2008
MAY / 5 / BALANCE / X / 200.00

NAMEROTHWELL MANAGEMENT INC.

ADDRESS16 UNIVERSITY PLACEVANCOUVER, WA 98661

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
2008
MAY / 1 / BALANCE / 300.00

NAMECASH IN BANK

ADDRESS

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
DEBIT CREDIT
2008
MAY / 1 / BALANCE / X / 5000.00

NAMEACCOUNT RECEIVABLE

ADDRESS

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
DEBIT CREDIT
2008
MAY / 1 / BALANCE / X / 1000.00

NAMESUPPLIES

ADDRESS

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
DEBIT CREDIT
2008
MAY / 1 / BALANCE / X / 300.00

NAMESTORE EQUIPMENT

ADDRESS

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
DEBIT CREDIT
2008
MAY / 1 / BALANCE / X / 4000.00

NAMESALES TAX PAYABLE

ADDRESS

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT / BALANCE
DEBIT CREDIT
2008
MAY / 1 / BALANCE / X / 400.00

NAMESALES

BALANCE
DEBIT CREDIT
2000.00
DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT
2008
MAY / 1 / BALANCE / X

ADDRESS

NAMESALES DISCOUNTS

DATE / DESCRIPTION / POST
REF / DEBIT / CREDIT
2008
MAY / 1 / BALANCE / X

ADDRESS

BALANCE
DEBIT CREDIT
500.00
DATE / DOC.
NO. / ACCOUNT
NAME / POST
REF. / GENERAL
CREDIT / SALES
CREDIT / SALES
TAX PAYABLE
CREDIT / ACCOUNTS
RECEIVABLE
CREDIT / SALES
DISCOUNT
DEBIT / CASH
IN
BANK
DEBIT
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CASH RECEIPTS JOURNAL