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College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958 Exercise 27
Recording sales made for cash, open account, and with credit cards.
The Victorian Elegance China Shop sells china, stemware, and other gift items. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and VISA; and, to customers using American Express. The bank credit cards charge a 3 percent fee. American Express charges a 4 percent fee. The Victorian Elegance China Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During June 2013, The Victorian Elegance China Shop engaged in the following transactions:
INSTRUCTIONS
1. Open the general ledger accounts indicated below and enter the balances as of June 1, 2013.
2. Record the transactions in a general journal. Use 15 as the journal page number.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.
GENERAL LEDGER ACCOUNTS
Analyze: What was the total credit card expense incurred in June?
The Victorian Elegance China Shop sells china, stemware, and other gift items. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as MasterCard and VISA; and, to customers using American Express. The bank credit cards charge a 3 percent fee. American Express charges a 4 percent fee. The Victorian Elegance China Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax. During June 2013, The Victorian Elegance China Shop engaged in the following transactions:
INSTRUCTIONS
1. Open the general ledger accounts indicated below and enter the balances as of June 1, 2013.
2. Record the transactions in a general journal. Use 15 as the journal page number.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.
GENERAL LEDGER ACCOUNTS
Analyze: What was the total credit card expense incurred in June?
Explanation
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Recording sale made on account with a sa...
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
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