Lesson 5.2 Using Sales and Cash Receipts Journals

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1 Lesson Plan 5.2 Using Sales and Cash Receipts Journals Course Title Accounting I Session Title Using Sales and Cash Receipts Journals Lesson Purpose Demonstrate skill in journalizing transactions using a Sales and Cash Receipts Journal. Behavioral Objectives Identify terms relating to sales and cash receipts transactions. Journalize sales and cash receipts transactions using special journals. Journalize transactions from sales and cash receipts that do not fit into the Special Journal and must be placed in a General Journal. Use automated methods of entering sales and cash receipts transactions. Preparation OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C. 2.b. analyze transactions relating to purchase and sale of merchandise; 2.c. record transactions in special journals; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch 2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C. 5. The student performs accounting functions specific for a merchandising business. The student is expected to explain the nature of special journals and recording transactions in special journals. Lesson 5.2 Using Sales and Cash Receipts Journals

2 TAKS Correlation: READING WRITING 5: The student will produce a piece of writing that demonstrates a command of the conventions of spelling, capitalization, punctuation, grammar, usage, and sentence structure. WRITING 6: The student will demonstrate the ability to revise and proofread to improve the clarity and effectiveness of a piece of writing. Objective 1: The student will demonstrate a basic understanding of culturally diverse written texts. MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Accounting software Lesson 5.2 Using Sales and Cash Receipts Journals

3 Teaching Strategies: Observation Demonstration Learner Preparation: Have students choose a bank credit card Web site to research. They can choose from: Have students write a report answering these questions: What is the company s mission statement or slogan? Include at least 4 facts about the company s history. Who is the CEO or President or other important official within the company? What type of career opportunities do they have? Describe the community activities in which are they involved? What is zero liability? What company is actually responsible for that bank credit card? What are three of the most frequently asked questions from that site? Do they have any special offers available? Describe them. Lesson Content: The lesson introduces sales and cash receipt transactions. It covers the terminology related to sales and cash receipts, and analyzing and journalizing transactions using manual and computerized methods. Assessment: Observation Graded Assignments Lesson 5.2 Using Sales and Cash Receipts Journals

4 Additional Resources: Textbooks: Multimedia: Websites: Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting Real- World Applications and Connections. Glencoe McGraw-Hill, ISBN/ISSN X. Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting Multicolumn Journal Anniversary Edition, 1st Year Course. South- Western Educational and Professional Publishing, ISBN/ISSN: Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General Journal Accounting Anniversary Edition, 7th Edition. South- Western Educational and Professional Publishing, ISBN/ISSN: Yacht, Carol. Southwestern Accounting with Peachtree. South-Western Educational and Professional Publishing, Chapter 8 Sales and Cash Receipts. Business Branch Office, Inc. 2001, CCH Business Owner s Toolkit; Sales and Cash Receipts Journal. CCH Incorporated, Business Partners: Local Merchants Franchise Owner Lesson 5.2 Using Sales and Cash Receipts Journals

5 Activity General Journal Transactions Course Title Accounting I Session Title Using Sales and Cash Receipts Journals Activity Purpose Identify terms related to sales and cash receipts and posting journals in a merchandising business. OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C 2.b. analyze transactions relating to purchase and sale of merchandise; 2.c. record transactions in special journals; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch 2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C. 5. The student performs accounting functions specific for a merchandising business. The student is expected to explain the nature of special journals and recording transactions in special journals. TAKS Correlation: N/A Materials, Equipment and Resources: Textbook Multimedia presentation software Teaching Strategies: Observation Activity General Journal Transactions

6 Activity Outline: Have students define these terms: sales journal footing cash receipts journal schedule of accounts customer sales tax receivable sale on account sales invoice cash sale credit card sale subsidiary ledger controlling account schedule of accounts payable accounts payable ledger accounts receivable ledger Ask your students to also research online resources for Terms for Sales and Cash Receipts documents and presentations to check their understanding of the terms. Assessment: Observation Quiz on Terms Activity General Journal Transactions

7 Quiz on Terms 1. Special journal used to record only sales on account transactions a. General Journal b. Cash Receipts Journal c. Sales Journal d. Purchases Journal 2. Column total written in small figures. a. estimating b. practice totaling c. column total d. footing 3. Special journal used only to record cash receipts transactions. a. General Journal b. Cash Receipts Journal c. Sales Journal d. Purchases Journal 4. Listing of customer accounts, account balances, and total amount due from customers. a. General ledger b. Subsidiary ledger c. Schedule of Accounts Receivable d. Schedule of Accounts Payable 5. Person or business to whom merchandise or services are sold. a. Proprietor b. Merchant c. Vendor d. Customer 6. Tax on sale of merchandise or services a. Sales Tax b. Customary Tax c. Personal Tax d. Payroll Taxes 7. Sale for which cash is received at a later date. a. Term Sale b. Sale on Account c. Credit Card Sale d. Postdated Sale 8. Invoice used as a source document for recording a sale on account. a. Tab b. Purchase Invoice c. Cash Register Ticket d. Sales Invoice 9. Sale in which cash is received for the total amount of the sale at the time of the sale. a. Sale on Account b. Ticket Sale c. Cash Sale d. Credit Card Sales 10. A sale in which a bank credit card is used for the total amount of the sale. a. Total Sale b. Credit Card Sales c. Sale on Account d. Cash Sales Activity Quiz on Terms

8 KEY - Quiz on Terms 1. Special journal used to record only sales on account transactions c. General Journal d. Cash Receipts Journal *c. Sales Journal d. Purchases Journal 2. Column total written in small figures. e. estimating f. practice totaling g. column total *d. footing 3. Special journal used only to record cash receipts transactions. h. General Journal *b. Cash Receipts Journal c. Sales Journal d. Purchases Journal 4. Listing of customer accounts, account balances, and total amount due from customers. i. General ledger j. Subsidiary ledger *c. Schedule of Accounts Receivable d. Schedule of Accounts Payable 5. Person or business to whom merchandise or services are sold. k. Proprietor l. Merchant m. Vendor *d. Customer 6. Tax on sale of merchandise or services *a. Sales Tax b. Customary Tax c. Personal Tax d. Payroll Taxes 7. Sale for which cash is received at a later date. n. Term Sale *b. Sale on Account e. Credit Card Sale f. Postdated Sale 8. Invoice used as a source document for recording a sale on account. o. Tab p. Purchase Invoice q. Cash Register Ticket *d. Sales Invoice 9. Sale in which cash is received for the total amount of the sale at the time of the sale. r. Sale on Account s. Ticket Sale *c. Cash Sale d. Credit Card Sales 10. A sale in which a bank credit card is used for the total amount of the sale. a. Total Sale *b. Credit Card Sales c. Sale on Account d. Cash Sales Activity Quiz on Terms

9 Activity Quiz on Terms

10 Activity Using the Sales Journal Course Title Accounting I Session Title Using Sales and Cash Receipts Journals Activity Purpose Demonstrate skill in journalizing sales on account transactions using a sales journal. OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C 2.b. analyze transactions relating to purchase and sale of merchandise; 2.c. record transactions in special journals; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch 2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C. 5. The student performs accounting functions specific for a merchandising business. The student is expected to explain the nature of special journals and recording transactions in special journals. 7.c. analyze sales transactions TAKS Correlation: MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Accounting software Teaching Strategies: Demonstration Observation Activity Outline: Demonstrate use of the sales journal for journalizing sales on account transactions. Emphasize the use of the Sales Tax Payable account. Ask students to use a Sales Journal Input Form spreadsheet and accounting software Activity Using the Sales Journal

11 to journalize these transactions for CDs Galore: 1 Sold on account to Sandra Baker $46.00 plus Sales Tax $4.00, S41 (Total Sale Oct $50.00) 1 Sold on account to Sandra Baker $99.00 plus Sales Tax $8.00, S42 3 Sold on account to Tom Tammerson $ plus Sales Tax $ S43 4 Sold on account to George Cullins $ plus Sales Tax $ S44 6 Sold on account to Tom Tammerson $22.00 plus Sales Tax $2.00. S45 10 Sold on account to Sandra Baker $ plus Sales Tax $ S46 10 Sold on account to George Cullins $ plus Sales Tax $ S47 10 Sold on account to Sandra Baker $44.00 plus Sales Tax $3.00. S48 15 Sold on account to Tam Tammerson $ plus Sales Tax $ S49 17 Sold on account to Frank Faucette $1, plus Sales Tax $ S50 20 Sold on account to James Oakerson (new account) $17.00 plus Sales Tax $1.50. S51 27 Sold on account to George Cullins $ plus Sales Tax $ S52 Assessment: Observation Graded Assignment Quality Feature Correct amounts and accounts on Sales Journal Input Form Enters information in Sales Journal Input form without errors in amounts or account numbers and names Totals accurate Completes in a timely manner Score Activity Using the Sales Journal

12 Activity Using the Cash Receipts Journal Course Title Accounting I Session Title Using Sales and Cash Receipts Journals Activity Purpose Demonstrate skill in journalizing transactions relating to cash receipts. OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C 2.b. analyze transactions relating to purchase and sale of merchandise; 2.c. record transactions in special journals; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch 2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C. 5. The student performs accounting functions specific for a merchandising business. The student is expected to explain the nature of special journals and recording transactions in special journals. 7.c. analyze sales transactions TAKS Correlation: MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Accounting software Teaching Strategies: Demonstration Observation Activity Using the Cash Receipts Journal

13 Activity Outline: Demonstrate use of the cash receipts journal for these types of transactions: Received cash from sales. Received cash from a customer on account. Received cash from bank credit card sales. Ask students to analyze these transactions into a Cash Receipts Journal Input Form then journalize the transactions using account software. Oct. Assessment: 5 Received cash on account from Sandra Baker, $45.00, R211 6 Received cash on account from George Cullins, $23.00, R212 7 Recorded cash and credit card sales, $2, plus sales tax $189.00, T Recorded cash and credit card sales, $3, plus sales tax $315.00, T Recorded cash and credit card sales, $2, plus sales tax $235.00, T Received cash on account from Sandra Baker, $747.00, R Received cash on account from Tom Tammerson, $477.00, R Received cash on account from George Cullins, $681.00, R Received cash on account from Frank Faucette, $1,135.00, R Received cash on account from James Oakerson, $18.50, R217 Observation Quiz on Special Journals Graded Assignment Quality Feature Correct amounts, account numbers, and names in all columns of Cash Receipts Input Journal Enters information with no errors Totals correct on the Cash Receipts Journal Completes in a timely manner Score Activity Using the Cash Receipts Journal

14 QUIZ ON SPECIAL JOURNALS Instructions: Place the correct letter of the journal used for each transaction in the first column. a. Purchases Journal b. Cash Payments Journal c. General Journal d. Sales Journal e. Cash Receipts Journal Journal Transaction Received cash from owner as an investment Owner withdrew cash for personal use Paid cash for advertising expense Purchased merchandise on account Recorded cash sales and sales tax Received cash from a customer on account Discovered an error as a debit to Purchases instead of Supplies Owner withdrew merchandise for personal use Purchased supplies on account Paid cash on account Received cash from credit card sales Activity Quiz on Special Journals

15 QUIZ ON SPECIAL JOURNALS - KEY Instructions: Place the correct letter of the journal used for each transaction in the first column. a. Purchases Journal b. Cash Payments Journal c. General Journal d. Sales Journal e. Cash Receipts Journal Journal o l l k o o k, m m m l o Transaction Received cash from owner as an investment Owner withdrew cash for personal use Paid cash for advertising expense Purchased merchandise on account Recorded cash sales and sales tax Received cash from a customer on account Discovered an error as a debit to Purchases instead of Supplies Owner withdrew merchandise for personal use Purchased supplies on account Paid cash on account Received cash from credit card sales Activity Quiz on Special Journals

16 Activity Proving Cash Course Title Accounting I Session Title Using Sales and Cash Receipts Journals Activity Purpose Demonstrate skill in proving cash. OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch 2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed C. 4.b. prove cash; TAKS Correlation: MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials, Equipment and Resources: Textbook Spreadsheet software Teaching Strategies: Demonstration Observation Activity Outline: Demonstrate proving cash using a Case Proof spreadsheet. Have students us a Case Proof spreadsheet to prove cash from CDs Galore. Activity Proving Cash

17 Assessment: Observation Graded Assignment Quality Feature Correct beginning balance on cash proof Correct Cash debit on Cash proof and debit added to the beginning balance Correct Cash credit on Cash proof and debit subtracted it from the beginning balance Cash proven with last unused check stub Completes in a timely manner Score Activity Proving Cash

Total Test Questions: 57 Levels: Grades Units of Credit:.50

Total Test Questions: 57 Levels: Grades Units of Credit:.50 DESCRIPTION Students will develop advanced skills that build upon those acquired in Accounting I. Students continue applying concepts of double-entry accounting systems related to merchandising businesses.