Record the cash sale on 12/17/14 of fourteen (14) gift cards valued at $20 each

Question

Record the cash sale on 12/17/14 of fourteen (14) gift cards valued at $20 each showing: Effect on accounting equation Journal entry T - accounts Update account balances shown to reflect the cash sale, and Create a Trial Balance in proper general ledger order. Using the updated trial balance, create: Single step income statement Statement of retained earnings Classified balance sheet Submit: Effect on accounting equation Journal entry T - accounts Trial Balance Income statement Statement of retained earnings Balance sheet Examples of Financial Statement formats are contained in the front of this manual and in the Canvas "Course-Wide Material" Module.

Explanation / Answer

1. A.Cash sale of 14 gift cards @$20 each, total sales price=$ 280 Cash balances increases by $280 & Sales increases by $280.

B. Journal Entry- Cash A/C Dr. $280

Sales A/C Cr. $280

C. T Accounts

2

Dr Sales A/C Cr Particulars Amount($) Particulars Amount($) By Cash A/C 280 P&L Accounts 280 Total 280 280 Dr Cash A/C Cr Particulars Amount($) Particulars Amount($) To Sales A/C 280 280 Total 280 280

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