1. Journalizing Sales and Cash Receipts
Chapter 11
Journalizing Sales and Cash Receipts

2. Sales Tax
Laws of most states require a tax be collected each time a sale is made.
The sales tax in Texas is _______ ?
Business must file reports with the government and pay the amount of sales tax collected.

3. Sales Tax Continued
The amount of sales tax collected is considered a liability to the business.
Sales Tax Formula
Price of Goods X Sales Tax Rate = Sales Tax

4. Vocabulary
Customer – a person or business to whom merchandise or services are sold.
Sale tax – a tax on a sale of merchandise or services.
Cash sale – a sale in which cash is received for the total amount of the sale at the time of the transaction.
Credit card sale – a sale in which a credit card is used for the total amount of the sale at the time of the transaction.

5. CONCEPT: Realization of Revenue
Regardless of when payment is made, revenue is recorded at the time of sale, not on the date cash is received.

6. CASH AND CREDIT CARD SALES
November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5, Cash Register Tape No 4.
Accounts Affected
Cash
Sales
Sales Tax Payable
Classification
Asset
Revenue
Liability
Change
Increased
Entered
Debit side
Credit side
Cash
Sales
normal balance
normal balance 
5,787.60
5,460.60 
Sales Tax Payable
normal balance
327.60 
Lesson 11-1, page 255

7. CASH AND CREDIT CARD SALES1 2 3 4 5 6 7
1. Write the date.
2. Place a check mark in the Account Title column to show that no account title needs to be written.
3. Write the cash register tape number.
4. Place a check mark in the Post. Ref. column to show that amounts on this line are not to be posted individually.
5. Write the sales amount.
6. Write the sales tax amount.
7. Write the cash amount.
Lesson 11-1, page 255

8. SALES INVOICE
Lesson 11-1, page 256

9. SALES ON ACCOUNT Accounts Affected Accounts Receivable Sales
November 3. Sold merchandise on account to Children’s Paradise, $816.00, plus sales tax, $48.96; total, $ Sales Invoice No. 76.
Accounts Affected
Accounts Receivable
Sales
Sales Tax Payable
Classification
Asset
Revenue
Liability
Change
Increased
Entered
Debit side
Credit side
Accounts Receivable
Sales
normal balance
normal balance 
864.96
816.00 
Sales Tax Payable
normal balance
48.96 
Lesson 11-1, page 257

10. SALES ON ACCOUNT 2 1 3 4 6 5 1. Write the date.
4. Write the total amount owed.
2. Write the customer name.
5. Write the sales amount.
3. Write the sales invoice number.
6. Write the sales tax amount.
Lesson 11-1, page 257

11. CASH RECEIPTS ON ACCOUNT1 2 3 4 5
1. Write the date.
2. Write the customer’s name.
3. Write the receipt number.
4. Write the credit amount.
5. Write the debit amount.
Lesson 11-1, page 258

12. Complete 11-1 Work Together and on your own

13. CARRYING TOTALS FORWARD ON THE LEFT PAGE1 6 2 3 4 5
1. Rule a single line.
2. Write the date.
RIGHT PAGE
3. Write Carried Forward.
4. Place a check mark.
Lesson 11-2, p
5. Write each column total.
6. Rule double lines.

14. STARTING A NEW EXPANDED JOURNAL LEFT PAGE1  2 3 5 4
1. Write journal page number on the left and right pages.
2. Write the date.
3. Write Brought Forward.
RIGHT PAGE
4. Place a check mark.
5. Record column total brought forward.
Lesson 11-2, p

15. PROVING AND RULING OF AN EXPANDED JOURNAL AT THE END OF THE MONTH1 5 2 3 4
1. Rule a single line.
2. Write the date.
3. Write Totals.
4. Write each column total.
RIGHT PAGE
5. Rule double lines.
Lesson 11-2, p

16. Complete the 11-2 Work Together and on your own