chapter 9 journalizing purchases and cash payments section 9-1
TRANSCRIPT
Chapter 9 – Journalizing Purchases and Cash Payments
Section 9-1
Merchandise –
Merchandising Business –
Retail Merchandising Business –
Wholesale Merchandising Business –
A service business and merchandising business use a similar Chart of Accounts, however, a
merchandising business has additional accounts on the balance sheet and income statement to
account for the _________________ and ________ of merchandise.
Corporation –
Share of Stock –
Capital Stock –
Stockholder –
CONCEPT: Business Entity –
CONCEPT: Going Concern –
A (_________) business with a limited number of daily transactions may record all entries in one
journal (_____________ journal). A (____________) business with many daily transactions
may choose to use a separate journal for each kind of transaction.
Special Journal –
There are five journals to record daily transactions (type and definition):
1.
2.
3.
4.
5.
Cost of Merchandise –
The _________ price must be greater than the cost of merchandise for a business to make a
_________.
Markup –
Revenue earned from the sale of merchandis includes both the
____________________________ and ____________ . Only the ____________ increases
_______________.
Vendor –
______________ account is only used to record the _________ of merchandise purchased.
CONCEPT: Historical Cost –
Purchase on Account –
Purchases Journal –
Special Amount Column –
REMEMBER: All _____________ on account transactions are recorded in the ____________
journal. Nothing dealing with CASH goes in this journal.
Purchase Invoice –
CONCEPT: Objective Evidence –
November 2. Purchased merchandise on account from Crown Distributing, $2,039.00.
Purchase Invoice No. 83.
The purchases journal is _____________ and doubled-rule at the end of each month.
Work Together 9-1
On Your Own 9-1
Section 9-2
Cash Payments Journal –
This journal is used for all transactions were ___________ is being paid for anything. The
__________ amount shown on a purchase invoice is what the customer is expected to pay.
However to encourage _________ payment, a vendor may allow a ______________ from the
invoice amount.
Cash Discount –
Purchases Discount –
When a ______________ discount is taken, the customer pays _____ than the invoice amount
recorded when the ____________________ occurred.
General Amount Column –
REMEMBER: Only cash payment transactions are recorded in the ________ _________
journal.
November 2. Paid cash for advertising, $150.00. Check # 292.
November 5. Paid cash for office supplies, $94.00. Check #293.
List Price –
Trade Discount –
These discounts are also used to quote different prices for different ____________ without
changing the list price.
The amount after the trade discount has been deducted from the list price is referred to as the
___________ amount.
November 7. Purchased merchandise for cash, $600.00. Check # 301.
A _________ discount is stated as a percentage deducted from the invoice amount. A common
term of sale is 2/10 n/30.
2 = ___________ 10 = ___________ n = __________ 30 = __________
Contra Account –
________________ is a contra account to ______________.
November 8. Paid cash on account to Gulf Craft Supply, $488.04, covering Purchase Invoice
#82 for $498.00, less 2% discount, $9.96. Check # 302.
November 13. Paid cash on account to American Paint, $2,650.00, covering Purchase Invoice
#77. Check # 303.
Work Together 9-2
On Your Own 9-2
Section 9-3
Cash Short –
Cash Over –
The account used for either of these is __________________________. The balance can be
either __________ or _________.
November 18. Paid cash to replenish the petty cash fund, $208.66: office supplies, $32.33;
advertising, $50.00; miscellaneous, $128.50; cash over, $2.17. Check #310.
The Cash Payments journal is ___________ and ______________ at the end of each month.
Verify that __________ equal ____________ when totaling the journal.
Section 9-4
Not all transactions can be recorded in ____________ journals. Transactions that cannot be
recorded in one of the special journals are journalized in the _____________ journal.
November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memo #52.
Purchases Return –
Purchases Allowance –
Debit Memorandum –
November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase
Invoice #80. Debit Memo #78.