2.
Journalize the given transactions.
2.
Explanation of Solution
Debit: A debit is an accounting term that refers to the left side of an account. The term debit is be denoted by (Dr). The recording amount on the left side of the account is known as debiting.
Credit: A credit is an accounting term that refers to the right side of an account. The term credit is denoted as (Cr). The recording amount on the right side of the account is known as crediting.
Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all the increase in the assets, the expenses and the dividends, all the decrease in liabilities, revenues and the stockholders’ equities.
- Credit, all the increase in the liabilities, the revenues, and the stockholders’ equities, and all decreases in the assets, and the expenses.
Pass the journal entries for the given transactions:
General Journal | Page - 15 | |||
Date | Description | Post Ref | Debit | Credit |
2019 | ||||
June 1 | Accounts receivable | 121 | $ 7,200 | |
Sales (1) | 401 | $ 7,200 | ||
(To record the sale on account to SCK; Invoice 6920; Terms n/15) | ||||
June 15 | Cash (3) | 101 | $ 11,016 | |
Sales | 401 | $ 10,200 | ||
Sales Tax Payable (2) | 222 | $ 816 | ||
(To record the cash sales) |
Table (1)
General Journal | Page - 15 | |||
Date | Description | Post Ref | Debit | Credit |
2019 | ||||
June 15 | Credit Card Expense (5) | 521 | $ 460.08 | |
Cash (6) | 101 | $ 14,875.92 | ||
Sales | 401 | $ 14,200.00 | ||
Sales Tax Payable (4) | 222 | $ 1,136.00 | ||
(To record the cash sales) | ||||
June 16 | Cash | 101 | $ 7,200 | |
Accounts receivable | 121 | $ 7,200 | ||
(To record the receipt from SCK) | ||||
Accounts receivable (8) | 121 | $ 9,720 | ||
Sales | 401 | $ 9,000 | ||
Sales Tax Payable (7) | 222 | $ 720 | ||
(To record the sale on account to JC; Invoice 908; Terms n/30) | ||||
June 17 | Accounts receivable | 121 | $ 10,800 | |
Sales (9) | 401 | $ 10,800 | ||
(To record the sale on account to VD; Invoice 6921; Terms n/15) | ||||
June 19 | Credit Card Expense (10) | 521 | $ 388.80 | |
Cash (11) | 101 | $ 9,331.20 | ||
Accounts receivable | 121 | $ 9,720.00 | ||
(To record the payment received for the sales made using the credit card) | ||||
June 29 | Cash | 101 | $ 10,800 | |
Accounts receivable | 121 | $ 10,800 | ||
(To record the receipt for the sales done to VD; Invoice 6921) |
Table (2)
General Journal | Page - 15 | |||
Date | Description | Post Ref | Debit | Credit |
2019 | ||||
June 30 | Cash (13) | 101 | $ 10,314 | |
Sales | 401 | $ 9,550 | ||
Sales Tax Payable (12) | 222 | $ 764 | ||
(To record the cash sales) | ||||
Credit card expense (15) | 521 | $ 379.08 | ||
Cash (16) | 101 | $ 12,256.92 | ||
Sales | 401 | $ 11,700.00 | ||
Sales Tax Payable (14) | 222 | $ 936.00 | ||
(To record the sales using the credit cards) | ||||
Accounts receivable | 121 | $ 19,548 | ||
Sales | 401 | $ 18,100 | ||
Sales Tax Payable (17) | 222 | $ 1,448 | ||
(To record the sale on account) |
Table (3)
Working Notes (1):
Calculate the value of Sales on June 1.
Working Notes (2):
Calculate the value of Sales Tax Payable on June 15.
Working Notes (3):
Calculate the value of Cash on June 15.
Working Notes (4):
Calculate the value of Sales Tax Payable on June 15.
Working Notes (5):
Calculate the value of Credit Card Expense on June 15.
Working Notes (6):
Calculate the value of Cash on June 15.
Working Notes (7):
Calculate the value of Sales Tax Payable on June 16.
Working Notes (8):
Calculate the value of Accounts receivable on June 16.
Working Notes (9):
Calculate the value of Sales on June 17.
Working Notes (10):
Calculate the value of Credit Card Expense on June 19.
Working Notes (11):
Calculate the value of Cash on June 19.
Working Notes (12):
Calculate the value of Sales Tax Payable on June 30.
Working Notes (13):
Calculate the value of Cash on June 30.
Working Notes (14):
Calculate the value of Sales Tax Payable on June 30.
Working Notes (15):
Calculate the value of Credit Card Expense on June 30.
Working Notes (16):
Calculate the value of Cash on June 30.
Working Notes (17):
Calculate the value of Sales Tax Payable on June 30.
1 and 3
1 and 3
Explanation of Solution
General ledger: General ledger is a record of all accounts of assets, liabilities, and
Post the journal entries in the General Ledger:
GENERAL LEDGER | ||||||
ACCOUNT: Cash | Account No.: 101 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 1 | ✔ | $ 30,155.00 | ||||
June 15 | J15 | $ 11,016.00 | $ 41,171.00 | |||
June 15 | J15 | $ 14,875.92 | $ 56,046.92 | |||
June 16 | J15 | $ 7,200.00 | $ 63,246.92 | |||
June 19 | J15 | $ 9,331.20 | $ 72,578.12 | |||
June 29 | J15 | $ 10,800.00 | $ 83,378.12 | |||
June 30 | J15 | $ 10,314.00 | $ 93,692.12 | |||
June 30 | J15 | $ 12,256.92 | $ 105,949.04 | |||
ACCOUNT: Accounts receivable | Account No.: 121 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 1 | J15 | $ 7,200.00 | $ 7,200.00 | |||
June 16 | J15 | $ 7,200.00 | $ 0.00 | |||
June 16 | J15 | $ 9,720.00 | $ 9,720.00 | |||
June 17 | J15 | $ 10,800.00 | $ 20,520.00 | |||
June 19 | J15 | $ 9,720.00 | $ 10,800.00 | |||
June 29 | J15 | $ 10,800.00 | $ 0.00 | |||
June 30 | J15 | $ 19,548.00 | $ 19,548.00 |
Table (4)
GENERAL LEDGER | ||||||
ACCOUNT: Sales Tax Payable | Account No.: 222 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 15 | J15 | $ 816.00 | $ 816.00 | |||
June 15 | J15 | $ 1,136.00 | $ 1,952.00 | |||
June 16 | J15 | $ 720.00 | $ 2,672.00 | |||
June 30 | J15 | $ 764.00 | $ 3,436.00 | |||
June 30 | J15 | $ 936.00 | $ 4,372.00 | |||
June 30 | J15 | $ 1,448.00 | $ 5,820.00 | |||
ACCOUNT: Sales | Account No.: 401 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 1 | J15 | $ 7,200.00 | $ 7,200.00 | |||
June 15 | J15 | $ 10,200.00 | $ 17,400.00 | |||
June 15 | J15 | $ 14,200.00 | $ 31,600.00 | |||
June 16 | J15 | $ 9,000.00 | $ 40,600.00 | |||
June 17 | J15 | $ 10,800.00 | $ 51,400.00 | |||
June 30 | J15 | $ 9,550.00 | $ 60,950.00 | |||
June 30 | J15 | $ 11,700.00 | $ 72,650.00 | |||
June 30 | J15 | $ 18,100.00 | $ 90,750.00 | |||
ACCOUNT: Credit Card Expense | Account No.: 521 | |||||
Date | Description | Post. Ref. | Debit | Credit | Balance | |
Debit | Credit | |||||
2019 | ||||||
June 15 | J15 | $ 460.08 | $ 460.08 | |||
June 19 | J15 | $ 388.80 | $ 848.88 | |||
June 30 | J15 | $ 379.08 | $ 1,227.96 |
Table (5)
The Credit Card Expense account shows a debit balance of $1,227.96 at the end of the month.
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Chapter 7 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
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