![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
![Problem 7.6A (Static) Recording sales made for cash, on open account, and with credit cards. LO 7-1, 7-
2, 7-4
Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax.
The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using
American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. Royal Gift Shop also
grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During
February 20X1, Royal Gift Shop engaged in the following transactions:
es
DATE TRANSACTIONS
20x1
Feb. 1 Sold crystal goods to Lovely Kitchens, a wholesale customer. The list price is $6,000, with a 30 percent trade
discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15.
15 Recorded cash sales for the period from February 1 to February 15 of $8, 600 plus sales tax of $688.
15 Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $13,000 plus
sales tax of $1,040. (Record the 2 percent credit card expense at this time.)
16 Received a check from Lovely Kitchens in payment of Invoice 5950 dated February 1.
16 Sold merchandise to customers using American Express for $8,100 plus sales tax of $648.
17 Sold a set of Roman statues to Beautiful Bedrooms, a wholesale customer. The list price is $12,000, with a 30
percent trade discount. This sale is not subject to sales tax. Issued Invoice 5951 with terms of n/15.
20 Received payment from American Express for the amount billed on February 16, less a 3 percent credit card
expense.
27 Received a check from Beautiful Bedrooms in payment of Invoice 5951 dated February 17.
28 Recorded cash sales for the period from February 16 to February 28 of $7,750 plus sales tax of $620.
28 Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $15,000
plus sales tax of $1,200. (Record the 2 percent credit card expense at this time.)
28 Sold merchandise to customers using American Express for $12,200 plus sales tax of $976.
Required:
2. Record the transactions in a general journal.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.](https://content.bartleby.com/qna-images/question/409fe3ef-4de5-45d0-8099-83a4623a506c/8c910466-e204-457e-9e17-9b25dfc00564/4cghqm02_thumbnail.jpeg)
Transcribed Image Text:Problem 7.6A (Static) Recording sales made for cash, on open account, and with credit cards. LO 7-1, 7-
2, 7-4
Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax.
The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using
American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. Royal Gift Shop also
grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During
February 20X1, Royal Gift Shop engaged in the following transactions:
es
DATE TRANSACTIONS
20x1
Feb. 1 Sold crystal goods to Lovely Kitchens, a wholesale customer. The list price is $6,000, with a 30 percent trade
discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15.
15 Recorded cash sales for the period from February 1 to February 15 of $8, 600 plus sales tax of $688.
15 Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $13,000 plus
sales tax of $1,040. (Record the 2 percent credit card expense at this time.)
16 Received a check from Lovely Kitchens in payment of Invoice 5950 dated February 1.
16 Sold merchandise to customers using American Express for $8,100 plus sales tax of $648.
17 Sold a set of Roman statues to Beautiful Bedrooms, a wholesale customer. The list price is $12,000, with a 30
percent trade discount. This sale is not subject to sales tax. Issued Invoice 5951 with terms of n/15.
20 Received payment from American Express for the amount billed on February 16, less a 3 percent credit card
expense.
27 Received a check from Beautiful Bedrooms in payment of Invoice 5951 dated February 17.
28 Recorded cash sales for the period from February 16 to February 28 of $7,750 plus sales tax of $620.
28 Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $15,000
plus sales tax of $1,200. (Record the 2 percent credit card expense at this time.)
28 Sold merchandise to customers using American Express for $12,200 plus sales tax of $976.
Required:
2. Record the transactions in a general journal.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.
Expert Solution
![Check Mark](/static/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps with 6 images
![Blurred answer](/static/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 7arrow_forwardTB 08 - 56 Accounts receivable accounts for specific cu... Accounts receivable accounts for specific customers are important because they show Multiple Choice How much each customer paid All of the choices are correct How much each customer still owes The basis for sending bills to customers How much each customer purchasesarrow_forwardProblem 7.6A (Algo) Recording sales made for cash, on open account, and with credit cards. LO 7-1, 7-2 The Aristocrat Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and Visa; and to customers using American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee. The Aristocrat Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During February 20X1, The Aristocrat Gift Shop engaged in the following transactions: DATE TRANSACTIONS February 1, 20x1 Sold crystal goods to Beautiful kitchens, a wholesale customer. The list price is $4,200, with a 20 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of "/15. February 15, 20x1 Recorded cash…arrow_forward
- Recording Transactions in the Cash Receipts and Cash Payments Journals Special and Combination Journals, and Voucher System 481 June 2015. The company uses cash receipts and cash payments journal. Borrowed P60,000 from the V. Espiritu Bank by issuing a 12%, 60-day The following cash transactions of the Papa Distributors occurred during the month of NAME: SCORE: SECTION: PROFESSOR: Problem #4 Borrowed P60,000 from the y Espiritu Bank by issuing a 12%, 60-day note payable. Purchased merchandise, P47.000. Issued check no. 71. Sold merchandise, P62,000. June 1 9. Paid an invoice amounting to P28.000 to Y. Filamor Company less 270 discount. Issued check no. 72. 7 Collected amount due less 3% discount on an invoice of P29,000 from D. Sandoval Company. 10 Collected amount due less 3% discount on an invoice of P22,000 from D. Mallari Supplies. Paid freight chárges on sales, P1,000. Issued check no. 73. Paid for advertising, P3,000. Issued check no. 74. Paid salaries, P12,000. Issued check no.…arrow_forwardSales for Thursday total $2,205.50. The cash drawer contains $1,255.25, credit card transactions total $1,020.25, and the cash bank for the drawer has an account balance of $75.00, What is the overage or shortage? O A. $5.00 shortage O B. $.50 shortage O C. $70.00 shortage O D. $5.00 overagearrow_forwardAccounting for Credit Card Sales Frank's Tattoos and Body Piercing operates near campus. At the end of a recent day, Frank's cash register included credit card documents for the following sales amounts: Mastercard $756 Visa 486 The merchant's charges are 1.8% for Mastercard and 2.1% for Visa. Frank's also had cash sales of $375 and $800 of sales on credit to a local business. Required: Prepare the journal entry to record these sales.arrow_forward
- CASH PAYMENTS JOURNAL Sam Santiago operates a retail variety store. The book include a cash payments journal and an accounts payable ledger. All cash paymen (except petty cash) are entered in the cash payments journal. Selected account balances on May 1 are as follows: General Ledger Cash Accounts Payable Accounts Payable Ledger Fantastic Toys Goya Outlet. Mueller's Distributors Van Kooning $40,000 20,000 $5,200 3,800 3,600 7,400 The following are the transactions related to cash payments for the month of May May 1 Issued Check No. 426 in payment of May rent (Rent Expense), $2,400. 3 Issued Check No. 427 to Mueller's Distributors in payment of merchandise purchased on account, $3,600, less a 3% discount. Check was written for $3,492. 7 Issued Check No. 428 to Van Kooning in partial payment of merchandise purchased on account, $5,500. A cash discount was not allowed. 12 Issued Check No. 429 to Fantastic Toys for merchandise purchased on account, $5,200, less a 1% discount. Check was…arrow_forward8:17 1 customer in payment of the customer's account of \ $2.700. What is the up-to-date ending Cash balance? 4. a bank reconciliation included a deposit in transit of $720, the company's journal entry for this reconciling item would include 5. Urban Bloom, Incorporated's books show an ending cash balance of $13,500 before preparing the bank reconciliationGiven the bank reconciliation shows outstanding checks of \$3700 deposits in transit of \$2,700, NSF check of $ 170, and interest earned on the bank account of $80, the company's up-to-date ending cash balance equals: 6. Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $19,200. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,850, outstanding checks of $2,700, an NSF check of $1,400, bank service charges of $65 and the EFT from a customer in payment of the customer's account of $2,200. What was the cash balance on the Egrane's books (before the adjustments for…arrow_forwardProblem 9.1A (Static) Journalizing cash receipts, cash short or over, and posting to the general ledger. LO 9-1 Candy’s Cupcakes, a retail business, started business on June 25, 20X1. It keeps a $300 change fund in its cash register. The cash receipts for the period from June 25 to June 30, 20X1, are below. DATE TRANSACTIONS June 25 Cash sales per the cash register tape, $1,238. Cash count, $1,529. 26 Cash sales per the cash register tape, $1,346. Cash count, $1,640. 27 Cash sales per the cash register tape, $1,359. Cash count, $1,661. 28 Cash sales per the cash register tape, $1,288. Cash count, $1,582. 29 Cash sales per the cash register tape, $1,135. Cash count, $1,439. 30 Cash sales per the cash register tape, $1,374. Cash count, $1,668. Required: Record the cash receipts from June 25 to June 30, 20X1, in a general journal. Post the amounts for Cash Short or Over in the journal entries to the general ledger.…arrow_forward
- Please avoid image based answers thanksarrow_forward4 (61) El Yaki- Celos Del https://newconnect.mheducation.com/flow/connect.html 4 1 Saved Help Save & Exit Check my vw Required information [The following information applies to the questions displayed below.] Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits only once per week. The following provides information from the company's cash ledger for the month ending February 28, 2021. Date Amount No. Date Amount Deposits: 2/4 2/11 2/18 2/25 2/26-2/28 $2,600 Checks: 2,200 3,100 4,000 1,500 $13,400 321 2/2 2/8 2/12 2/19 2/27 $ 4,600 322 650 323 2,400 2,100 324 Cash receipts: 325 450 326 2/28 950 2/28 1,800 $12,950 327 Balance on February 1 $6,700 Receipts Disbursements 13,400 (12,950) $ 7,150 Balance on February 28 8:41 PM earch 3/8/2020 80 K. H.arrow_forwardNote:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education