ACC 100 Lecture Notes - Lecture 4: Cash Flow Statement, Retained Earnings, Cash Flow
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PLEASE ANSWER ALL OF THESE ANSWERSâ
Assignment: Accounting for Sales and Cash Receipts
Part 1
Answer the following questions:
What is a cash receipt? How do businesses record the receipt of cash?
Explain how a purchase made with a store credit card is different from a purchase made with a bank credit card.
How are a bank credit card and a bank debit card similar? How are they different?
Part 2 (6 points)
A sales slip shows that $1,500 in merchandise has been sold and the sales tax rate is 4%. Generate the cash receipt's data.
Debit (-) | Credit (+) |
Debit (-) | Credit (+) |
Debit (-) | Credit (+) |
Part 3 (6 points)
Your accounting supervisor has instructed you to verify the accuracy of the day s bank credit card sales, and then deposit that amount into the business checking account. Summarize the 4 steps that you need to perform.
Part 4 (6 points)
Evaluate the practice of using a contra account to record sales returns and allowances.
(What is a Contra account and how does it affect the Sales Account?)
PLEASE ANSWER ALL OF THESE ANSWERSâ
Assignment: Accounting for Sales and Cash Receipts
Part 1
Answer the following questions:
What is a cash receipt? How do businesses record the receipt of cash?
Explain how a purchase made with a store credit card is different from a purchase made with a bank credit card.
How are a bank credit card and a bank debit card similar? How are they different?
Part 2 (6 points)
A sales slip shows that $1,500 in merchandise has been sold and the sales tax rate is 4%. Generate the cash receipt's data.
Debit (-) | Credit (+) |
Debit (-) | Credit (+) |
Debit (-) | Credit (+) |
Part 3 (6 points)
Your accounting supervisor has instructed you to verify the accuracy of the day s bank credit card sales, and then deposit that amount into the business checking account. Summarize the 4 steps that you need to perform.
Part 4 (6 points)
Evaluate the practice of using a contra account to record sales returns and allowances.
(What is a Contra account and how does it affect the Sales Account?)
During March, the business engaged in the followingtransactions, All figures are GST (GST is 15%)inclusive where applicable:
Journalise each transaction. Key journal entries bytransaction letter, using the format below:
General Journal
Transactions | Accounts | Debit ($) | Credit ($) | |
| ||||
1 March: Borrowed $45,000 from the bank and signed a billpayable in the name of the business.
2 March: Paid cash of $40,000 to acquire a motor vehicle.
4 March: Performed service for a customer and received cash of$5,000.
10 March: Purchased supplies on credit, $300.
14 March: Performed customer service and earned revenue oncredit, $2,600.
15 March: Paid $1,200 on account.
16 March: Paid the following cash expense: advertising, $3,000;rent, $1,500; and computer repair, $400.
22 March: Received $3,100 on account.
26 March: Received a $200 electricity and gas bill that will bepaid next month.
28 March: Harper withdrew $1,800 for personal use.