Awesome Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 20x1 follow, along with the general ledger accounts used to record these transactions. GENERAL LEDGER ACCOUNTS $ 17,400 Dr. 101 Cash 109 Notes receivable 111 Accounts receivable 401 Sales 451 Sales returns and allowances 452 Sales discounts 22,000 Dr. DATE TRANSACTIONS April 1 sold merchandise for $4,900 to Soprano Music Center; issued Invoice 9312 with terms of 2/10, n/30. 3 Received a check for $1,960 from Music Supply Store in payment of Invoice 6718 of March 25 ($2,000), less a cash discount ($40). 5 Sold merchandise for $1,825 in cash to a new customer who has not yet established credit. 8 Sold merchandise for $5,500 to Music Warehouse; issued Invoice 9313 with terms of 2/10, n/30. 10 Soprano Music Center sent a check for $4,802 in payment of Invoice 9312 of April 1 ($4,900), less a cash discount ($98). 15 Accepted a return of damaged merchandise from Music Warehouse; issued Credit Memorandum 105 for $900; the original sale was made on Invoice 9313 of April 8. 19 Sold merchandise for $11,500 to Eagleton Music Center; issued Invoice 9314 with terms of 2/10, n/30. 23 Collected $3,225 from Sounds From Yesterday for Invoice 6725 of March 25. 26 Accepted a two-month promissory note for $6,500 from Country Music Store in settlement of its overdue account; the note has an interest rate of 12 percent. 28 Received a check for $11,270 from Eagleton Music Center in payment of Invoice 9314, dated April 19 ($11,500), less a cash discount ($230). 30 Sold merchandise for $10,800 to Contemporary Sounds, Inc.; issued Invoice 9315 with terms of 2/10, n/30. Required: 1. Open the general ledger accounts and enter the balances as of April 1, 20X1. 2. Record the transactions in a sales journal, a cash receipts journal, and a general journal. 3. Post the entries from the general journal to the general ledger. 4. Post the column totals from the special journals to the proper general ledger accounts. 5. Prepare the heading and the Revenue section of the firm's income statement for the month ended April 30. Analyze: What total sales on account were made in the month of April prior to any returns or allowances? General Ledgers Sales Journal Cash Receipts General Journal Income Statement Analyze Post the opening balances and transactions into the appropriate ledger accounts. Cash Account No: 101 Notes Receivable Date Debit Credit Balance Date Debit Apr 01, 20X1 Account No: 109 Credit Balance Sales Accounts Receivable Date Debit Apr 01, 2019 Account No: 111 Credit Balance Account No: 401 Credit Balance Date Debit Account No: 451 Sales Discounts Account No: 452 Sales Returns and Allowances Date Debit Credit Balance Date Debit Credit Balance Record the transactions in a sales journal as of April 20x1. SALES JOURNAL Date Invoice No. Customer's Name Accounts receivable Dr./Sales Cr. Apr 30, 20X1 Total Record the transactions in a cash receipts journal as of April 20x1. CASH RECEIPTS JOURNAL Other Accounts Credit Date Description Accounts Receivable Sales Credit Credit Sales Discount Debit Cash Debit Account Name Amount Apr 30, 2019 Totals Journal entry worksheet
