Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firmâs cash receipts for February and the general ledger accounts used to record these transactions are shown below.
GENERAL LEDGER ACCOUNTS
101 Cash $ 5,060 Dr. 401 Sales 109 Notes Receivable 900 Dr. 491 Interest Income 111 Accounts Receivable 4,125 Dr. 620 Cash Short or Over 129 Supplies 710 Dr. 231 Sales Tax Payable 345 Cr. 301 Jason Wilson, Capital 35,000 Cr.
DATE TRANSACTIONS Feb. 3 Received $600 from Danielle Pelzel, a credit customer, on account. 5 Received a cash refund of $130 for damaged supplies. 7 Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70. 9 Jason Wilson, the owner, invested an additional $16,000 cash in the business. 12 Received $480 from Kyela Jones, a credit customer, in payment of her account. 14 Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38. 16 Received $550 from Sadie Nelson, a credit customer, to apply toward her account. 19 Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36. 21 Had cash sales of $5,050 plus sales tax of $404 during the third week of February. 25 Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes. 28 Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46.
Required:
Open the general ledger accounts and enter the balances as of February 1, 2019.
Record the transactions in a cash receipts journal.
Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.
Total, prove, and rule the cash receipts journal as of February 28, 2019.
Post the column totals from the cash receipts journal to the proper general ledger accounts.
Analyze:
What total accounts receivable were collected in February?
Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firmâs cash receipts for February and the general ledger accounts used to record these transactions are shown below.
GENERAL LEDGER ACCOUNTS
| 101 | Cash | $ | 5,060 | Dr. | 401 | Sales | |
| 109 | Notes Receivable | 900 | Dr. | 491 | Interest Income | ||
| 111 | Accounts Receivable | 4,125 | Dr. | 620 | Cash Short or Over | ||
| 129 | Supplies | 710 | Dr. | ||||
| 231 | Sales Tax Payable | 345 | Cr. | ||||
| 301 | Jason Wilson, Capital | 35,000 | Cr. | ||||
| DATE | TRANSACTIONS | ||
| Feb. | 3 | Received $600 from Danielle Pelzel, a credit customer, on account. | |
| 5 | Received a cash refund of $130 for damaged supplies. | ||
| 7 | Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70. | ||
| 9 | Jason Wilson, the owner, invested an additional $16,000 cash in the business. | ||
| 12 | Received $480 from Kyela Jones, a credit customer, in payment of her account. | ||
| 14 | Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38. | ||
| 16 | Received $550 from Sadie Nelson, a credit customer, to apply toward her account. | ||
| 19 | Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36. | ||
| 21 | Had cash sales of $5,050 plus sales tax of $404 during the third week of February. | ||
| 25 | Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes. | ||
| 28 | Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46. | ||
Required:
Open the general ledger accounts and enter the balances as of February 1, 2019.
Record the transactions in a cash receipts journal.
Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.
Total, prove, and rule the cash receipts journal as of February 28, 2019.
Post the column totals from the cash receipts journal to the proper general ledger accounts.
Analyze:
What total accounts receivable were collected in February?
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Related questions
Required information
Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2
[The following information applies to the questionsdisplayed below.]
Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).
| Mar. | 1 | Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30. | ||||
| 2 | Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000). | |||||
| 3 | (a) | Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM. | ||||
| 3 | (b) | Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000). | ||||
| 6 | Borrowed $72,000 cash from FederalBank by signing a long-term note payable. | |||||
| 9 | Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM. | |||||
| 10 | Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). | |||||
| 12 | Received payment from Min Cho forthe March 2 sale less the discount. | |||||
| 13 | (a) | Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount. | ||||
| 13 | (b) | Received payment from Linda Wittfor the March 3 sale less the discount. | ||||
| 14 | Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30. | |||||
| 15 | (a) | Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 15 | (b) | Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.) | ||||
| 16 | Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM. | |||||
| 17 | Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14. | |||||
| 19 | Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit. | |||||
| 20 | Received payment from Jovita Albanyfor the sale of March 10 less the discount. | |||||
| 23 | Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount. | |||||
| 27 | Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). | |||||
| 28 | Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920). | |||||
| 31 | (a) | Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 31 | (b) | Cash sales for the last half of themonth are $70,400 (cost is $42,240). | ||||
| 31 | (c) | Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake the month-end postings. |
Assume the following ledger account amounts Inventory (March 1 beg.bal. is $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000)and Church Company uses the perpetual inventory system.
Problem 7-1A Part 2
Required:
2-a. Enter the transactions in a sales journal.
2-b. Enter the transactions in a purchasesjournal.
2-c. Enter the transactions in a cash receiptsjournal.
2-d. Enter the transactions in a cashdisbursements journal.
2-e. Enter the transactions in a generaljournal.
Enter the transactions in a sales journal.
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Enter the transactions in a purchases journal.
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Enter the transactions in a cash receipts journal.
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Enter the transactions in a cash disbursements journal.
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Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
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*Enter debits before credits
Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
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*Enter debits before credits
