10-4 MASTERY PROBLEM
Journalizing sales and cash receipts transactions; proving and ruling journals

Aqua Center installs and maintains swimming pools and spas.
    Use page 19 of a sales journal, page 20 of a cash receipts journal, and page 14 of a general journal. Balances brought forward are provided on line 1 of each journal in the Working Papers.

Instructions:
  1. Journalize the following transactions completed during the remainder of October in the appropriate journal. The sales tax rate is 4%. Source documents are abbreviated as follows: receipt, R; sales invoice, S; terminal summary, TS.

    Transactions:
    Oct. 26. Received cash on account from Slumber Inns, covering S435 for $1,356.00, less a 2% discount. R293.
    27. Sold merchandise on account to County Hospital, $489.50, plus sales tax, $19.58; total, $509.08. S443.
    28. Recorded cash and credit card sales, $4,315.00, plus sales tax, $126.60; total, $4,441.60. TS44.
    29. Received cash on account from Summit Lodge, $467.24, covering S438. R294.
    29. Granted credit to Slumber Inns for merchandise returned, $124.00, plus sales tax, $4.96, from S293; total, $128.96. CM54.
    30. Sold merchandise on account to Southeastern University, $3,643.50. Southeastern University is exempt from sales tax. S444.
    31. Recorded cash and credit card sales, $1,232.00, plus sales tax, $42.22; total, $1,274.22. TS45.

  2. Total and prove the equality of debits and credits for the sales journal.
  3. Rule the sales journal.
  4. Total and prove the equality of debits and credits for the cash receipts journal.
  5. Prove cash. The October 1 cash account balance in the general ledger was $4,483.25. The October 31 cash credit total in the cash payments journal was $39,315.22. On October 31, the balance on the next unused check stub was $8,918.50.
  6. Rule the cash receipts journal.