learning targets chapter 9 i will be responsible for knowing and understanding the following...

Learning Targets Chapter 9 I will be responsible for knowing and understanding the

following concepts: Accounting Terms Related to the purchases and cash

payments journals

Accounting Concepts and Practices related to the purchases and cash payments journals

Journalize Purchases of Merchandise using a purchases journal

Journalize Cash Payments and Cash Discounts using a cash payments journal

Prepare a petty cash report and journalize the reimbursement

Total, prove, and rule a cash payments journal

Journalize purchases returns, and allowances.

I will be able to listen to my instructor and take notes, be an active participant as needed.

Learning Targets 9-1 I will be responsible for knowing and understanding

the following concepts: Journalizing Purchases and Using a Purchases Journal

Merchandising Businesses

Corporations

Special Journals

I will be able to listen to my instructor and take notes, be an active participant as needed.

I will complete 9-1 Workbook activities as assigned

TechKnow Consulting

Merchandising Business Retail vs Wholesale

What are some merchandising and services businesses in the area?

Corporation Share of Stock, Capital Stock, Stockholder

Why might a business form a corporation?

LESSON 9-1 3

LESSON 9-1 4

Used to record similar types of transactions.

If a transaction cannot be recorded in a special journal,

the company records it in the general journal.

Expanding the Ledger-Special Journals

PURCHASING MERCHANDISE

Purchases Account -Temporary account

- reduces capital - has a normal debit balance

PURCHASES ON ACCOUNT

PURCHASES JOURNAL: A special journal used to record ONLY Purchases of merchandise ON ACCOUNT

-A purchase on account transaction is recorded on only one line of the purchases journal-A purchase made for cash IS NOT recorded in this journal-Every purchase on account will have a purchase invoice issued from the vendor.

PURCHASE INVOICE

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1. Stamp the date received andpurchase invoice number.

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4. Review the vendor’s terms.

3. Initials of the person whochecked the invoice.

2. Place a check mark by each amount.

PURCHASING MERCHANDISE ON ACCOUNT

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November 2. Purchased merchandise on account from Crown Distributing, $2,039.00. Purchase Invoice No. 83.

1. Write the date.

2. Write the vendor name.

3. Write the purchase invoice number.

4. Write the amount of the invoice.

TOTALING AND RULING A PURCHASES JOURNAL

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661. Rule a single line across the amount column.

2. Write the date.

3. Write the word Total.

4. Add the amount column.

5. Write the total.

6. Rule double lines across the amount column.

Classwork/Homework

Work Together 9-1 pg. 241, WB pg. 193

On Your own 9-1 pg. 241 WB pg. 194

LESSON 9-1 11

Learning Targets 9-2 I will be responsible for knowing and understanding

the following concepts: Accounting terms related to cash payments for a

merchandising business

Accounting practices as they relate to cash payments for a merchandising business

Accounting practices as they relate to the Cash Payments Journal

I will be able to listen to my instructor and take notes, be an active participant as needed.

I will complete 9-2 Workbook activities as assigned

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Used to record similar types of transactions.

If a transaction cannot be recorded in a special journal,

the company records it in the general journal.

Expanding the Ledger-Special Journals

Cash Payments Journal

Cash discount – a deduction that a vendor allows on the invoice amount to encourage prompt payment

Purchases discount – cash discount on purchases taken by a customer. The customer pays less than the invoice amount previously recorded in the purchases account.

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Cash Payment of an Expense

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November 2. Paid cash for advertising, $150.00. Check No. 292.

1. Write the date.

2. Write the account title.

3. Write the check number.

4. Write the debit amount.

5. Write the credit amount.

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Cash Payment for Supplies

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November 5. Paid cash for office supplies, $94.00. Check No. 293.

1. Write the date.

2. Write the account title.

3. Write the check number.

4. Write the debit amount.

5. Write the credit amount.

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Cash Payments for Purchases

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November 7. Purchased merchandise for cash, $600.00. Check No. 301.

1. Write the date.

2. Write the account title.

3. Write the check number.

4. Write the debit amount.

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Cash Payments on Account with Purchases Discount

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November 8. Paid cash on account to Gulf Craft Supply, $488.04, covering Purchase Invoice No. 82 for $498.00, less 2% discount, $9.96. Check No. 302.

1. Write the date.

2. Write the account title of the vendor.

3. Write the check number.

4. Write the debit amount.

5. Write the credit amount.

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Cash Payments on Account Without purchases Discounts

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November 13. Paid cash on account to American Paint, $2,650.00, covering Purchase Invoice No. 77. Check No. 303.

1. Write the date.

2. Write the vendor account title.

3. Write the check number.

4. Write the debit amount.

5. Write the credit amount.

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Classwork/Homework

Work Together 9-2 pg. 247, WB pg. 195

On your Own 9-2 pg. 247 WB pg. 196

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Learning Targets 9-3 I will be responsible for knowing and understanding

the following concepts: Accounting terms related to cash payments for a

merchandising business

Accounting practices as they relate to cash payments for a merchandising business

Accounting practices as they relate to the petty cash / petty cash reports

I will be able to listen to my instructor and take notes, be an active participant as needed.

I will complete 9-3 Workbook activities as assigned

Petty Cash Report

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6. Write the actual amount of cash on hand. 88

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1. Write the date and custodian name.

2. Write the fund total.

3. Summarize petty cash payments.

4. Calculate and write the total payments.

5. Calculate and write the recorded amount on hand.

7. Subtract the actual amount on hand from the recorded amount on hand and write the amount.

8. Write the total of the replenish amount.

Replenishing a Petty Cash Fund

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1. Date

2. Account titles

3. Check number

4. Expense amounts

5. Cash short as a debit; cash over as a credit

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6. Total cash payment

TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD

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661. Rule a single line.

2. Write the date.

3. Write the words Carried Forward in the Account Title column.

4. Place a check mark in the Post. Ref. column.

5. Write each column total.

6. Rule double lines.

Starting a New Cash payments Journal Page

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1. Write the journal page number.

2. Write the date.

3. Write the words Brought Forward in the Account Title column.

4. Place a check mark in the Post. Ref. column.

5. Record the column totals.

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TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH

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1. Rule a single line.

2. Write the date.

3. Write the word Totals in the Account Title column.

4. Write each column total.

5. Rule double lines.

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Classwork / Homework

WT 9-3 TB: 253 WB: 197

OYO 9-3 TB: 253 WB: 198

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Learning Targets 9-4 I will be responsible for knowing and understanding

the following concepts: Accounting terms related to purchases returns and

allowances

Accounting practices as they relate to purchases returns and allowances for a merchandising business

Journalize purchases returns and allowances and other transactions using a general journal.

I will be able to listen to my instructor and take notes, be an active participant as needed.

I will complete 9-4 Workbook activities as assigned

LESSON 9-1 29

Used to record similar types of transactions.

If a transaction cannot be recorded in a special journal,

the company records it in the general journal.

Expanding the Ledger-Special Journals

Journalizing Other Transactions Using a General Journal -Buying office supplies on account for use by

employees -Purchases returns and Allowances

- Purchases return – returned merchandise resulting in a decrease in the customer’s accounts payable

- Purchases allowance – credit allowed for part of the purchase price resulting in a decrease in A/P (damaged or incorrect merchandise)

- Contra account to Purchases – has a normal credit balance

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Buying Supplies on Account

LESSON 9-1 31

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November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memorandum No. 52.

1. Write the date. 5. Write the account title and vendor name.2. Write the account title.

6. Place a diagonal line in the Post. Ref. column.

3. Write the memorandum number.

7. Write the credit amount.4. Write the debit amount.

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Debit Memorandum

LESSON 9-1 32

Journalizing Purchases Returns and Allowances

LESSON 9-1 33

4. Write debit memorandum number.

November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase Invoice No. 80. Debit Memorandum No. 78.

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1. Write the date.

5. Write the amount.2. Write the account title and vendor name. 6. Write Purchases Returns and Allow.

3. Place a diagonal line in the Post. Ref. column.

7. Write the amount.

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Homework / Classwork

WT: 9-4 TB pg 258 / WB pg 199

OYO: 9-4 TB pg 258 / WB pg 199

LESSON 9-1 34