ACC291T Week 1 Apply Exercise
Question 1
The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:
DATE
TRANSACTIONS
2019
May
1
Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
15
Recorded cash sales, $3,200 plus 8 percent sales tax.
31
Received payment on account due from Bill Gomez for the sale on May 1.
ANSWER
- Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
Date
General Journal
Debit
Credit
May 01, 2019
Accounts receivable/Bill Gomez
1,296
Sales
1,200
Sales tax payable
96
- Recorded cash sales, $3,200 plus 8 percent sales tax.
Date
General Journal
Debit
Credit
May 15, 2019
Cash
3,456
Sales
3,200
Sales tax payable
256
- Received payment on account due from Bill Gomez for the sale on May 1.
Date
General Journal
Debit
Credit
May 31, 2019
Cash
1,296
Accounts receivable/Bill Gomez
1,296
Question 2
A wholesale business sells goods with a list price of $980 and a trade discount of 25 percent. The net sales price is
Multiple Choice
$245.00.
$735.00.
$980.00.
$1,005.00.
Question 3
Hour Place Clock Shop sold a grandfather clock for $2,450 subject to a 7% sales tax. The entry in the general journal will include a credit to Sales for
Multiple Choice
$2,450.00.
$2,229.50.
$2,670.50.
$2,441.00.
Question 4
If Lacy's Department Store charges 8 percent sales tax, the amount of sales tax collected on a $275 sale would be
Multiple Choice
$22.00.
$220.00.
$34.38.
$3.44.
Question 5
Vicente Company made sales using the following list prices and trade discounts. What amount should be recorded for each sale?
- List price of $620 and trade discount of 40 percent.
- List price of $720 and trade discount of 30 percent.
- List price of $300 and trade discount of 20 percent.
ANSWER
1. $372
2. $504
3. $240
Question 6
Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places):
DATE
TRANSACTIONS
2019
Feb.
2
Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.
15
Sold merchandise totaling $2,900 to customers using American Express.
20
Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15.
ANSWER
- Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 21 percent discount on credit card sales at time of sale.
Date
General Journal
Debit
Credit
Feb 02, 2019
Cash
2,900.88
Credit card expense
771.12
Sales
3,400.00
Sales tax payable
272.00
- Sold merchandise totaling $2,900 to customers using American Express.
Date
General Journal
Debit
Credit
Feb 15, 2019
Accounts receivable/American Express
3,132.00
Sales
2,900.00
Sales tax payable
232.00
- Received amount due from American Express, less their 22 percent discount, for sales made by customers using American Express on February 15.
Date
General Journal
Debit
Credit
Feb 20, 2019
Cash
2,442.96
Credit card expense
689.04
Accounts receivable/American Express
3,132.00
General Journal
No
Date
General Journal
Debit
Credit
1
Feb 02, 2019
Cash
2,900.88
Credit card expense
771.12
Sales
3,400.00
Sales tax payable
272.00
2
Feb 15, 2019
Accounts receivable/American Express
3,132.00
Sales
2,900.00
Sales tax payable
232.00
3
Feb 20, 2019
Cash
2,442.96
Credit card expense
689.04
Accounts receivable/American Express
3,132.00
Question 7
If a firm had sales of $44,000 during a period and sales returns and allowances of $3,400, its net sales were
Multiple Choice
$47,400.
$44,000.
$40,600.
$3,400.
Question 8
Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.
Assume the following account balances at January 1, 2019:
Accounts Receivable (control account)
$
8,160
Accounts Receivable—John Gibrone
5,000
Accounts Receivable—Jim Garcia
2,120
Accounts Receivable—June Lin
1,040
GENERAL JOURNAL
DATE
DESCRIPTION
POST.
REF.
DEBIT
CREDIT
2019
Jan.
8
Cash
500
Accounts Receivable/John Gibrone
500
Received partial payment on
account from John Gibrone
20
Sales Returns and Allowances
300
Sales Tax Payable
24
Accounts Receivable/Jim Garcia
324
Accept return of defective
merchandise, Credit
Memorandum 121; original sale
made on Sales Slip 11102 of
December 27, 2018
- Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.
- Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?
ANSWER
Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.
CALDERONE COMPANY
Schedule of Accounts Receivable
January 31,2019
John Gibrone
$4,500
Jim Garcia
1,796
June Lin
1,040
Total
$7,336
Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?
Total of your accounts receivable schedule agrees with the balance of the Accounts Receivable account
Yes
Question 9
On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $5,600 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.
Multiple Choice
$5,152
$6,048
$5,600
$5,592
Question 10
Kay Sadia sold merchandise for $9,000 subject to a 8% sales tax. The entry in the general journal will include a debit to Accounts Receivable for:
Multiple Choice
$9,720.00.
$8,460.00.
$9,000.00.
$8,994.00.
6 years ago
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