college accountinghorowitk/documents/chapter12_002.pdf · 2019. 8. 26. · •april 4 made sale no....

College

Accounting

Heintz & Parry20th Edition

Special

Journals

12Chapter

1

Describe, explain the

purpose of, and

identify transactions

recorded in special

journals.

• Designed for recording only certain kinds of

transactions

• Save time journalizing and posting transactions

Transactions are entered on a single line

Column totals are posted periodically

• A general journal is still needed for some

transactions

SPECIAL

JOURNAL TRANSACTIONS

Sales journal Sales on account

Only sales “on account,”not cash sales.

SPECIAL



Any transaction in which cash is received.Cash sales are recorded in this journal.

Cash receipts journal Cash receipts

SPECIAL



“ON ACCOUNT” purchases of MERCHANDISE only


Purchases journal Purchases on account

SPECIAL




Purchases journal Purchases on account

Cash payments journal Cash payments

Any transaction in which cash is paid.

2

Describe and use the

sales journal.

• April 4 Made sale no. 133C on account to Enrico

Lorenzo, $1,520 plus $76 sales tax

• April 10 Made sale no. 134C on account to Brenda

Myers, $440 plus $22 sales tax

• April 18 Made sale no. 105D on account to Edith

Walton, $980 plus $49 sales tax

• April 21 Made sale no. 202B on account to Susan

Chang, $620 plus $31 sales tax

• April 24 Made sale no. 162A on account to Heidi

Schwitzer, $1,600 plus $80 sales tax

Let’s review the general journal entries for these transactions.

DATE DESCRIPTION PR DEBIT CREDIT

1

2

3

4

5

6

7

8

9

10

11

Apr. 4 Accts. Receivable/E. Lorenzo 1,596 00

Sales 1,520 00

Sales Tax Payable 76 00

Sale No. 133C

Four lines are used to prepare one journal entry!!

20--

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


1

2

3

4

5

6

7

8

9

10

11

Apr. 4 Accts. Receivable/E. Lorenzo 1,596 00

Sales 1,520 00

Sales Tax Payable 76 00

Sale No. 133C

10 Accts. Receivable/B. Myers 462 00

440 00Sales

Sales Tax Payable

Sale No. 134C

22 00

20--



Accts. Receivable/E. Walton12

13

14

15

16

17

18

19

20

21

22

18

Sales

Sales Tax Payable

1,029 00

980 00

49 00

Sale No. 105D

Accts. Receivable/S. Chang

Sales

Sales Tax Payable

Sale No. 202B

651 00

620 00

31 00

21



Accts. Receivable/H. Schwitzer23

24

25

26

27

28

29

30

31

32

33

24

Sales

Sales Tax Payable

1,680 00

1,600 00

80 00

Sale No. 162A

All the entries involved the same three accounts!!


• Provides a column for each account involved in “sales on account” transactions: Accounts Receivable Debit

Sales Credit

Sales Tax Payable Credit

• A sale is recorded in the sales journal by entering the following information: Date

Sales number

Customer (to whom sold)

Dollar amounts

Date To Whom Sold PRAccts. Receivable

Debit/Sales Credit1

2

3

4

5

6

7

8

9

10

11

Sale

No.

A company that does not charge sales tax, such as a wholesaler, will use a single-column

sales journal.


Date To Whom Sold PRAccts. Rec.

Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 4 133C

Sales

Credit

Enrico Lorenzo 1,596 1,520 76

The whole transaction is recorded on ONE line. Account names are not

entered.



Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit


10 134C Brenda Myers 462 440 22

18 105D Edith Walton 1,029 980 49

202B Susan Chang 651 620 31

24 162A Heidi Schwitzer 1,680 1,600 80

Now let’s look at postingfrom the sales journal.


18

21


Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit


10 134C Brenda Myers 462 440 22

18 105D Edith Walton 1,029 980 49

21 202B Susan Chang 651 620 31


Step #1a Total the amount columns.

5,418 5,160 258



Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit


10 134C Brenda Myers 462 440 22

18 105DEdith Walton 1,029 980 49

21 202BSusan Chang 651 620 31

24162A Heidi Schwitzer 1,680 1,600 80

Step #1b Verify that the total of the debit column equals the total of the credit columns.

5,418 5,160 258



Debit

Sales Tax

Pay. Credit

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit


10134C Brenda Myers 462 440 22

18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31

24162AHeidi Schwitzer 1,680 1,600 80

5,418 5,160 258

Debits$5,418

Credits$5,418


1


Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit


10 134C Brenda Myers 462 440 22

18 105D Edith Walton 1,029 980 49

21 202B Susan Chang 651 620 31


Step #1c Rule the columns.

5,418 5,160 258



Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit



18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31


Let’s post the Accounts Receivable total.

5,418 5,160 258


Account: Account No.

DATE ITEM P

R

DR. CR.BALANCE

DR. CR.

ACCOUNTS RECEIVABLE 122

20--

Apr. 1 12,000

30

Balance

Step #2 Enter the date.



DATE ITEM P

R

DR. CR.BALANCE

DR. CR.


20--

Apr. 1 12,000

30

Balance

Step #3 Enter the amount.

5,418



DATE ITEM P

R

DR. CR.BALANCE

DR. CR.


20--

Apr. 1 12,000

30

Balance

Step #4 Enter the new balance.

5,418 17,418



DATE ITEM PR DR. CR.BALANCE

DR. CR.


20--

Apr. 1 12,000

30

Balance

Step #5 Enter the initial “S” and

the journal page number.

5,418 17,418S6



Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

Sale

No.20--Apr. 133C

Sales

Credit



18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31


Step #6 Enter the account number below the column total.

5,418 5,160 258

(122)


11


Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

Sale

No.20--Apr. 133C

Sales

Credit



18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31


Steps #2 – #6 will be repeated for the Sales and Sales Tax Payable columns.

5,418 5,160 258

(122) (401) (231)


11


Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

11

Sale

No.20--Apr. 133C

Sales

Credit



18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31


Each transaction must also be posted to the accounts receivable ledger.

5,418 5,160 258

(122) (401) (231)


10

Name:

DATE ITEM PR DEBIT CREDIT BALANCE

Enrico Lorenzo

2s2a

a00--Apr. 1,5964

Address: 5240 Tousley Court, Indianapolis, IN 46224-

5678

1,596S6

Step #1: Enter the date.Step #2: Enter the amount.

Step #3: Update the balance.Step #4: Enter the initial “S” and the

journal page number in the PR column.



Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

10

11

Sale

No.20--Apr. 133C

Sales

Credit



18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31


“” is entered to indicate the

transaction has been posted to the accounts receivable ledger.

5,418 5,160 258

(122) (401) (231)



Debit

Sales Tax

Pay. Credit

1

2

3

4

5

6

7

8

9

Sale

No.20--Apr. 133C

Sales

Credit



18105DEdith Walton 1,029 980 49

21202BSusan Chang 651 620 31


The other sales are posted to the accounts receivable ledger in the same

manner.

5,418 5,160 258

(122) (401) (231)


10

11

3


cash receipts journal.

• Used to record only cash receipt transactions

• Includes separate columns for:

Cash Debit

Bank Credit Card Expense Debit

Accounts Receivable Credit

Sales Credit

Sales Tax Payable Credit

General Credit

Date Account Credited PRGeneral

Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

EXAMPLE: April 14, received cash on

account from Enrico Lorenzofor sale no. 133C, $1,596.



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Step #1 Enter the date.

Apr.20--


14


Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Step #2 Enter the name of the account

credited.

Apr.20--

14 Enrico Lorenzo



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--

14 Enrico Lorenzo

This column is used for two purposes:1. To identify the customer name for any collection on account. This column is used whenever the Accounts Receivable Credit

column is used.2. To enter the appropriate account name

whenever the General Credit column is used.



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Step #3 Enter the dollar amount.

Apr.20--

14 Enrico Lorenzo 1,596


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462

Cash was also received onaccount on April 20th and 28th.


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462

28 Edith Walton 1,029


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


Now let’s journalize cash sales for April 30 of $3,600 plus tax of $180.



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


This column is left blank for cash sales.

30


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

3,600 180+ = 3,780

Total Credits = Total Debits



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


Bank credit card sales are similar to cash sales; no entry is made in the Account

Credited column.

30

30


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

Bank credit card sales of $2,500 were made this month.

2,500


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

Sales tax on these sales was $125.

2,500 125


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

The service charge on thesebank credit card sales was $100.

2,500 125 100


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

The cash received was $2,525.[($2,500 sales + $125 tax) – $100 service

charge]

2,500 125 100 2,525



Credit

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit


20 Brenda Myers 462


Example:April 30, received cashfor rent revenue, $600.

30

30


Apr.20--


Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


We need to credit Rent Revenue and debit Cash.

30

30



CreditAccts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


Since there is no column for Rent Revenue, we must use the General Credit column.

30

30

30 600

1

2

3

4

5

6

7

8

9

10

11 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


Credit

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


When the General Credit column is used, the Account Credited column must identify the specific general ledger account affected.

30

30

30 600Rent Revenue

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

1

2

3

4

5

6

7

8

9

10



Credit

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


Borrowing money would be recorded in a similar manner.

30

30

30 600Rent Revenue

30 Notes Payable 3,000

A

A

o

A

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

1

2

3

4

5

6

7

8

9

10




CreditAccts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


30

30

30 600Rent Revenue


On a daily basis, the amounts in theGeneral Credit column are posted.

1

2

3

4

5

6

7

8

9

10

11



DR. CR.

RENT REVENUE 412

20--

Apr. 1 1,800

30

Balance

“CR” for Cash Receipts Journal

600 2,400CR7



CreditAccts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


General ledger account number

30

30

30 600Rent Revenue


41

2

1

2

3

4

5

6

7

8

9

1011



CreditAccts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


Notes Payable is posted in the same manner.

30

30

30 600Rent Revenue


412

201

1

2

3

4

5

6

7

8

9

10



CreditAccts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


At the end of the month, the columns are totaled.

30

30

30 600Rent Revenue


412

201

3,600 3,087

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

Next, we verify that the debit columns equal the total of the credit columns.

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,500

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

$3,600 + $3,087 + $6,100 + $305 = $13,092 Credits

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

$100 + $12,992 = $13,092 Debits DEBITS = CREDITS!!!

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

Each column total (except the General Credit column) is posted at the end of the month.

1

2

3

4

5

6

7

8

9

10




DR. CR.


20--

Apr. 1 12,000

30

Balance

“CR” for Cash Receipts Journal

5,418 17,418S6

30 CR7 3,087 14,331


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

(122) The account number indicatesthat the total was posted.

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. DebitCash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

(122) (401) (231) (513) (101)

Remaining columns are posted in the same manner.

1

2

3

4

5

6

7

8

9

10


Bank C C

Exp. Debit

1

2

3

4

5

6

7

8

9

10

11

Cash

Debit

1,596

Sales Tax

Pay. CreditSales

Credit

Accts. Rec.

Credit General

Credit

1,596

462462

1,0291,029

3,600 180 3,780

2,500 125 100 2,525

600 600

3,000 3,000

3,600 3,087 6,100 305 100 12,992

(122) (401) (231) (513) (101)

“()” indicates the column total is

not posted.

()



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


Postings to the subsidiary accounts receivable ledger are made daily.

30

30

30 600Rent Revenue


412

20

1 3,600 3,087


Name:


Enrico Lorenzo

20--

Apr. 1,5964

Address: 5240 Tousley Court, Indianapolis, IN 46224-

5678

1,596S6

14 1,596CR7 —



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


30

30

30 600Rent Revenue


412

201

3,600 3,087

“” indicates the transaction was posted to

the accounts receivable subsidiary ledger.



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


30

30

30 600Rent Revenue


412

201

3,600 3,087

The payments by Brenda and Edithare posted in the same manner.



Credit

1

2

3

4

5

6

7

8

9

10

11

Accts. Rec.

Credit

Apr.20--


20 Brenda Myers 462


30

30

30 600Rent Revenue


412

201

3,600 3,087

“” is entered into the PR column

for cash sales and bank credit card sales.


4


purchases journal.

• Used to record only purchases of merchandise on account

Cash purchases would be recorded in the cash payments journal

• There are two types of formats:

Single column

o Purchases Debit/Accounts Payable Credit

Three columns

o Purchases Debit

o Freight-In Debit

o Accounts Payable Credit

DateFrom Whom

Purchased PR

Purchases Debit/

Accounts Payable Credit

1

2

3

4

5

6

7

8

9

10

11

Invoice

No.

For our example, we will use a single-column purchases journal.


Date

From Whom

Purchased PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice

No.

EXAMPLE: April 4, purchased merchandise from Compucraft, Inc., $3,300. Invoice no.

631, dated April 2, n/30.

20--Apr. 4 631 Compucraft, Inc. 3,300


Date

From Whom

Purchased PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice

No.

All purchases transactions are journalized in the same manner.


8 927D Datasoft 2,500

11 804 EZX Corp. 8,700

17 611 Printpro Corp. 800

23 1465 Televax, Inc. 5,300


Date

From Whom

Purchased PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice

No.

At the end of the month, the column is totaled, ruled, and posted to the general ledger

accounts.



11 804 EZX Corp. 8,700


23 1465 Televax, Inc. 5,300

20,600


Posting From The Purchases Journal To

The General Ledger



DR. CR.

PURCHASES 501

20--

Apr. 1 17,400

30

Balance

“P” for Purchases Journal

20,600 38,000P8


Date From Whom

Purchased

PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice

No.20--Apr. 4 631 Compucraft, Inc. 3,300


11 804 EZX Corp. 8,700


23 1465 Televax, Inc. 5,300

20,600

(501)

The account number indicates that the column total has been

posted.




DR. CR.

ACCOUNTS PAYABLE 202

20--

Apr. 1 4,800

30

Balance

20,600 25,400P8


Date

From Whom

Purchased PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice



11 804 EZX Corp. 8,700


23 1465 Televax, Inc. 5,300

20,600

(501) (202)Transactions are posted to

the accounts payable ledger on a daily basis.


Name:


Compucraft, Inc.

20--

Apr. 3,3004

Address: 2100 West Main Street, Muncie, IN 47304-

8139

3,300P8


Date

From Whom

Purchased PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice



11 804 EZX Corp. 8,700


23 1465 Televax, Inc. 5,300

20,600

(501) (202)

“” is entered in the PR column

when posting is completed.


DateFrom Whom

Purchased PR

Purchases Debit/


1

2

3

4

5

6

7

8

9

10

11

Invoice



11 804 EZX Corp. 8,700


23 1465 Televax, Inc. 5,300

20,600

(501) (202)

The remaining transactions are posted in the same manner.


5


cash payments journal.

• Used to record only cash

payments transactions

• Every transaction in the

journal will involve a

credit to the cash

account

• Columns are set up in

the journal for the most

commonly affected

accounts in cash

payments transactions

Date Account Debited PRGeneral

Debit

1

2

3

4

5

6

7

8

9

10

11

EXAMPLE: April 2, payment of rent, $2,400.

Check

No.



Debit

1

2

3

4

5

6

7

8

9

10

11

All cash payments (except thosefrom petty cash) should be madeby check for good internal control.

20-

-Apr. 2

Check

No.

307



Debit

1

2

3

4

5

6

7

8

9

10

11

This column is used for two purposes: 1. To identify a supplier name for any

payment on account. This column is used whenever the Accounts Payable

Debit column is used.2. To enter the appropriate account name

whenever the General Debit column is used.

20-

-Apr. 2

Check

No.

307 2,400Rent Expense


1

2

3

4

5

6

7

8

9

10

11

Cash

CreditPurch. Disc.

Credit

Purchases

Debit

Accts. Pay.

Debit General

Debit

2,4002,400



Debit

1

2

3

4

5

6

7

8

9

10

11

EXAMPLE: April 4, merchandise was purchased for

cash, $1,400.

20--Apr. 2

Check

No.


4 308


1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

CreditPurchases

Debit

Accts. Pay.

Debit General

Debit

2,4002,400

1,400 1,400



Debit

1

2

3

4

5

6

7

8

9

10

11

EXAMPLE: April 10, payment was

made on account, $4,800.

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

Credit

Purchases

Debit

Accts. Pay.

Debit General

Debit

2,4002,400

1,400 1,400

4,800 4,800



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small

14 310 Notes Payable

EXAMPLE: April 14, payment was made on a

note payable, $2,000.

2,000


1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

Credit

Purchases

Debit

Accts. Pay.

Debit General

Debit

2,4002,400

1,400 1,400

4,800 4,800

2,0002,000



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


EXAMPLE: April 22, owner withdrew

cash for personal use, $1,600.

2,000

22 311 Gary L. Fishel, Drawing 1,600


1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

Credit

Purchases

Debit

Accts. Pay.

Debit General

Debit

2,4002,400

1,400 1,400

4,800 4,800

2,0002,000

1,6001,600



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


EXAMPLE: April 24, made payment on account

within the discount period.

2,000


24 312 EZX Corp.


1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

Credit

Purchases

Debit

Accts. Pay.

Debit General

Debit

2,4002,400

1,400 1,400

4,800 4,800

2,0002,000

1,6001,600

8,700 87 8,613



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


On a daily basis, the amounts in the General Debit column are posted.

2,000


24 312 EZX Corp.



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


The initial “CP” is entered in the ledger account’s PR column, and the account number is entered in the journal’s PR

column.

2,000


24 312 EZX Corp.

521

201

312


Date Account Debited PR

General

Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


At the end of the month, the columns are totaled, the equality of debits and credits is

verified, and the totals are posted to the general ledger.

2,000


24 312 EZX Corp.

521

201

312

6,000


1

2

3

4

5

6

7

8

9

10

11

Cash

CreditPurch. Disc.

Credit

Purchases

DebitAccts. Pay.

Debit

General

Debit

2,4002,400

1,400 1,400

4,800 4,800

2,0002,000

1,6001,600

8,700 87 8,613

6,000 13,500 1,400 87 20,813

6,000 + 13,500 + 1,400

= 20,900

87 + 20,813

= 20,900©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

Credit

Purchases

DebitAccts. Pay.

Debit

General

Debit

2,4002,400

1,400 1,400

4,800 4,800

2,0002,000

1,6001,600

8,700 87 8,613

6,000 13,500 1,400 87 20,813

“()” indicates the column

should not be posted.

()


1

2

3

4

5

6

7

8

9

10

11

Cash

Credit

Purch. Disc.

CreditPurchases

DebitAccts. Pay.

Debit

General

Debit

2,4002,400

1,400 1,400

4,800 4,800

2,0002,000

1,6001,600

8,700 87 8,613

6,000 13,500 1,400 87 20,813

Account numbers indicate the totals were posted.

(202) (501) (501.2) (101)()



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


Transactions affecting the accounts payable ledger are posted daily.

2,000


24 312 EZX Corp.

521

201

312

6,000



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


“” is entered to indicate the

transaction has been posted.

2,000


24 312 EZX Corp.

521

201

312

6,000



Debit

1

2

3

4

5

6

7

8

9

10

11

20--Apr. 2

Check

No.


4 308

10 309 B. B. Small


“” is also entered for transactions

that do not require individual postings.

2,000


24 312 EZX Corp.

521

201

312

6,000


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