Acct chapter 17

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Acct chapter 17

  1. 1. Chapter 17: Special Journals: Purchases and Cash PaymentsThe Accounting Cycle for a Merchandising Corporation!!!
  2. 2.  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.
  3. 3. SalesJournal  Sale of merchandiseCash Receipts on account  Receipt of all cash Journal  Purchase of anyPurchases Journal asset on accountCash Payments  Payment of cash, including Journal payments by checkGeneral Journal  Any transaction that does not fit into special journals
  4. 4. Purchase of any asseton accountSource document:purchase invoice
  5. 5.  Received Invoice 7894 from Pro Runner Warehouse for merchandise purchased on account, $2,300, terms 1/20, n/30.
  6. 6.  Purchased store equipment from Champion Store Supply on account for $1200, Invoice #3417.
  7. 7. Used to record alltransactions in which cash ispaid out or decreased, suchas checks & banks statementsSource document: check orbank statement
  8. 8. Paid $1,500 to Keystone Insurance company for the premium on a six-month insurance policy, check 1001Start here on Monday.
  9. 9. Purchased merchandise from Fast Lane Athletics for $1,300, ck 1002
  10. 10. Recording Employee Payroll
  11. 11. Recording Miscellaneous Expense
  12. 12. Posting Rules 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
  13. 13. Process of verifying that cashrecorded in accountingrecords agrees with amountentered in checkbook
  14. 14. In General Ledger
  15. 15. Now, on to some class activities on our topic!!!

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