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:
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.
120.42. 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
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.
130.166.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
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Teaching Strategies:


Observation
Demonstration
Learner Preparation:
Have students choose a bank credit card Web site to research. They can
choose from:
http://www.discovercard.com
http://www.visa.com
http://www.mastercard.com.
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
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Additional Resources:
Textbooks:
Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting RealWorld Applications and Connections. Glencoe McGraw-Hill, 2000.
ISBN/ISSN 0-02-815004-X.
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting
Multicolumn Journal Anniversary Edition, 1st Year Course. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43524-0
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General
Journal Accounting Anniversary Edition, 7th Edition. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43529-1.
Yacht, Carol. Southwestern Accounting with Peachtree. South-Western
Educational and Professional Publishing, 2003.
Multimedia:
Chapter 8 Sales and Cash Receipts. Business Branch Office, Inc. 2001,
2002. http://www.bboinc.com/actghome/Tests/ch8/CH8.HTM.
Websites:
CCH Business Owner’s Toolkit; Sales and Cash Receipts Journal. CCH
Incorporated, 2009.
http://www.toolkit.cch.com/text/P06_1414.asp.
Business Partners:


Local Merchants
Franchise Owner
Lesson 5.2 – Using Sales and Cash Receipts Journals
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 5.2.1 – 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:
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.
120.42.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
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.
130.166.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 5.2.1 – General Journal Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Have students define these terms:
sales journal
schedule of accounts
receivable
sale on account
credit card sale
schedule of accounts
payable
footing
customer
cash receipts journal
sales tax
sales invoice
subsidiary ledger
accounts payable
ledger
cash sale
controlling account
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 5.2.1 – General Journal Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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 5.2.1 – Quiz on Terms
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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 5.2.1 – Quiz on Terms
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 5.2.1 – Quiz on Terms
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 5.2.2 – 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:
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.
120.42.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
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.
130.166.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 5.2..2 – Using the Sales Journal
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
to journalize these transactions for CDs Galore:
Oct
1 Sold on account to Sandra Baker $46.00 plus Sales Tax $4.00, S41 (Total Sale
$50.00)
1 Sold on account to Sandra Baker $99.00 plus Sales Tax $8.00, S42
3 Sold on account to Tom Tammerson $199.00 plus Sales Tax $16.00. S43
4 Sold on account to George Cullins $425.00 plus Sales Tax $38.00. S44
6 Sold on account to Tom Tammerson $22.00 plus Sales Tax $2.00. S45
10 Sold on account to Sandra Baker $499.00 plus Sales Tax $44.00. S46
10 Sold on account to George Cullins $201.00 plus Sales Tax $17.00. S47
10 Sold on account to Sandra Baker $44.00 plus Sales Tax $3.00. S48
15 Sold on account to Tam Tammerson $219.00 plus Sales Tax $19.00. S49
17 Sold on account to Frank Faucette $1,042.00 plus Sales Tax $93.00. 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 $244.00 plus Sales Tax $22.00. 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
Activity 5.2..2 – Using the Sales Journal
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 5.2.3 – 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:
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.
120.42.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
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.
130.166.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 5.2.3 – Using the Cash Receipts Journal
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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
.
5
6
7
14
21
26
26
26
26
26
Received cash on account from Sandra Baker, $45.00,
R211
Received cash on account from George Cullins, $23.00,
R212
Recorded cash and credit card sales, $2,100.00 plus
sales tax $189.00, T201
Recorded cash and credit card sales, $3,501.00 plus
sales tax $315.00, T202
Recorded cash and credit card sales, $2,622.00 plus
sales tax $235.00, T203
Received cash on account from Sandra Baker, $747.00,
R213
Received cash on account from Tom Tammerson,
$477.00, R214
Received cash on account from George Cullins, $681.00,
R215
Received cash on account from Frank Faucette,
$1,135.00, R216
Received cash on account from James Oakerson, $18.50,
R217
Assessment:



Observation
Quiz on Special Journals
Graded Assignment
Quality Feature
Score
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
Activity 5.2.3 – Using the Cash Receipts Journal
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
QUIZ ON SPECIAL JOURNALS
Instructions: Place the correct letter of the journal used for each
transaction in the first column.
a.
b.
c.
d.
e.
Journal
Purchases Journal
Cash Payments Journal
General Journal
Sales Journal
Cash Receipts 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 5.2.3 – Quiz on Special Journals
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
QUIZ ON SPECIAL JOURNALS - KEY
Instructions: Place the correct letter of the journal used for each
transaction in the first column.
a.
b.
c.
d.
e.
Journal
Purchases Journal
Cash Payments Journal
General Journal
Sales Journal
Cash Receipts Journal
Transaction
o
Received cash from owner as an investment
l
Owner withdrew cash for personal use
l
Paid cash for advertising expense
k
Purchased merchandise on account
o
Recorded cash sales and sales tax
o
Received cash from a customer on account
k, m
Discovered an error as a debit to Purchases
instead of Supplies
m
Owner withdrew merchandise for personal use
m
Purchased supplies on account
l
Paid cash on account
o
Received cash from credit card sales
Activity 5.2.3 – Quiz on Special Journals
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 5.2.4 - Proving Cash
Course Title – Accounting I
Session Title – Using Sales and Cash Receipts Journals
Activity Purpose – Demonstrate skill in proving cash.
OLD TEKS Correlations:
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.
120.42.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
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.
130.166.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 5.2.4 – Proving Cash
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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
Activity 5.2.4 – Proving Cash
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1