accounting 3 chapter 19 section 1. sales journal this journal is used only to record sales of...
TRANSCRIPT
Accounting 3Accounting 3
Chapter 19Chapter 19
Section 1Section 1
Sales JournalSales Journal
This journal is used This journal is used onlyonly to record to record salessales of of merchandise on accountmerchandise on account..
If a sale is paid for in cash, it does If a sale is paid for in cash, it does not get recorded in this journal.not get recorded in this journal.
Journalizing Sales on Journalizing Sales on AccountAccount
When sales are made on account, When sales are made on account, sales tax and total invoice amount sales tax and total invoice amount must be calculated and recorded must be calculated and recorded properly.properly.
Formulas:Formulas:– Sales Invoice Amount x Sales Tax Rate= Sales Invoice Amount x Sales Tax Rate=
Sales Tax Payable.Sales Tax Payable.– Sales Invoice Amount + Sales Tax Sales Invoice Amount + Sales Tax
Payable= Total Invoice Amount.Payable= Total Invoice Amount. Example transaction and visual steps Example transaction and visual steps
on next slide.on next slide.
March 2. Sold merchandise on account to Tennis Castle, March 2. Sold merchandise on account to Tennis Castle, $1,800.00 plus sales tax, $144.00; total, $1,944.00. Sales $1,800.00 plus sales tax, $144.00; total, $1,944.00. Sales
Invoice No. 176. (Sales tax rate was 8%)Invoice No. 176. (Sales tax rate was 8%)
Sales Journal Page ___
Date Account DebitedPost
Ref.
Sales Tax Payable
Credit
Sale
No.Accts Rec
Debit
Sales
Credit
Mar 2 Tennis Castle 176 1 9 4 4 00
1 8 0 0 00
1 4 4 00
*If there is a transaction in which you do not have the total invoice amount given to you, it may be helpful to fill in the sales credit first, then figure the sales tax and enter it, then figure your total and enter it.
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Posting from a Sales Journal to the Posting from a Sales Journal to the Accounts Receivable and General Accounts Receivable and General
LedgerLedger When posting a sales journal entry, the When posting a sales journal entry, the
amount in the Accounts Receivable Debit amount in the Accounts Receivable Debit column will go into the respective column will go into the respective Customer account in the Accounts Customer account in the Accounts Receivable Ledger.Receivable Ledger.
At the end of the fiscal period, the totals of At the end of the fiscal period, the totals of the special columns will go into their the special columns will go into their respective accounts in the general ledger. respective accounts in the general ledger.
An example of this will be in the Work An example of this will be in the Work Together problem.Together problem.
Work Together p. 492Work Together p. 492Sales Journal Page ___
Date Account DebitedPost
Ref.
Sales Tax Payable
Credit
Sale
No.Accts Rec
Debit
Sales
Credit
Apr
2 Northland Hospital 138 160 3 8 0 16
3 5 2 00
2 8 16
4 Blanton College 139 120 4 8 6 75
4 8 6 75
10 Belmont Water Association
140 110 2 6 4 60
2 4 5 00
1 9 60
14 Tess and Sons 141 190 6 7 2 84
6 2 3 00
4 9 84
30 Totals 1 8 0 4 35
1 7 0 6 75 9 7 60
(1125) (4105) (2135)
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View the postings after you have reviewed each entry by clicking on the hyperlink.
Assignment
Customer Cust No.
Date ItemPost
RefDebit Credit
Debit
Balance
Customer Cust No.
Date ItemPost
RefDebit Credit
Debit
Balance
Belmont Water Association
110
Apr 1 Balance S4 3 7 1 56
9 S4 2 6 4 60 6 3 6 16
Blanton College 120
Apr 1 Balance 2 7 9 1 00
4 S4 4 8 6 75 3 2 7 7 75
Accts Rec Ledger
Customer Cust No.
Date ItemPost
RefDebit Credit
Debit
Balance
Customer Cust No.
Date ItemPost
RefDebit Credit
Debit
Balance
Accts Rec LedgerNorthland Hospital 160
Apr 1 Balance 3 7 9 1 80
2 S4 3 8 0 16 4 1 7 1 96
Tess & Sons 190
Apr 1 Balance 4 7 1 90
14 S4 6 7 2 84 1 1 4 4 74
Account Acct No.
Date ItemPost
RefDebit Credit BALANCE
DEBIT CREDIT
Account Acct No.
Date ItemPost
RefDebit Credit BALANCE
DEBIT CREDIT
General Ledger
Accounts Receivable 1125
Apr 1 Balance 7 4 2 6 26
30 S4 1 8 0 4 35 9 2 3 0 61
Sales Tax Payable 2135
Apr 1 Balance 1 9 4 00
30 S4 9 7 60 2 9 1 60
Account Acct No.
Date ItemPost
RefDebit Credit BALANCE
DEBIT CREDIT
General Ledger
Sales 4105
Apr 1 Balance 10 7 9 1 60
30 S4 1 7 0 6 75 12 4 9 8 35
AssignmentAssignment
Do Application 19-1 by hand.Do Application 19-1 by hand. Turn it into Mrs. Middleton.Turn it into Mrs. Middleton. Move on to Section 2.Move on to Section 2.