Download - Acct chapter 17
The Accounting Cycle for a Merchandising Corporation!!!
Chapter 17: Special Journals: Purchases and Cash Payments
Essential Outcomes
Understand the Special Journals by being able to… Explain the purpose of the purchases & cash payments
journals Record transactions in the purchases & cash pavements
journals Post from the special journals to the General Ledger &
Subsidiary Ledgers Total, prove & rule the purchases & cash payments journals Prepare a schedule of accounts payable Prove cash. Define the accounting terms used in this chapter.
Sales JournalCash Receipts Journal
Purchases Journal
Cash Payments Journal
General Journal
Sale of merchandise on account
Receipt of all cash Purchase of any
asset on account Payment of cash,
including payments by check
Any transaction that does not fit into special journals
Journals
Purchases Journal
Purchase of any asset on accountSource document: purchase invoice
The Purchases Journal
Received Invoice 7894 from Pro Runner Warehouse for merchandise purchased on account, $2,300, terms 1/20, n/30.
Purchased store equipment from Champion Store Supply on account for $1200, Invoice #3417.
Posting transactions from the Purchases Journal to the A/P Subsidiary
Ledger
Posting transactions from the Purchases Journal to the General
Ledger
Footing, Totaling, Proving & Ruling the Purchases Journal
Posting the Total of the A/P & Purchases Column
Cash Payments Journal
Used to record all transactions in which cash is paid out or decreased, such as checks & banks statementsSource document: check or bank statement
Paid $1,500 to Keystone Insurance company for the premium on a six-month
insurance policy, check 1001
Start here on Monday.
Purchased merchandise from Fast Lane Athletics for $1,300, ck 1002
Recording Employee Payroll
Recording Miscellaneous Expense
Posting transactions from the Cash Payments Journal to the A/P Subsidiary
Ledger
Posting transactions from the Cash Payments Journal to the A/P Subsidiary
Ledger
Footing, Totaling
, Proving Ruling
& Posting Column Totals
to Cash Paymen
ts Journal
Proving Accounts Payable Subsidiary Ledger
Commit to memory:1. Post Daily:
Any General Debit or Credit column to Gen. Ledger
Accounts Receivable & Accounts Payable to Subsidiary Ledger
2. Post at End of Month: All special amount columns with
account names
Posting Rules
Preparing a Cash Proof
Process of verifying that cash recorded in accounting records agrees with amount entered in checkbook
Preparing the Cash Proof Schedule
In General Ledger
That’s all folks!!!
Now, on to some class activities on our
topic!!!