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Acct20-Chapter10
This document provides an overview of key accounting concepts related to journalizing purchases and cash payments. It defines terms like partnership, partner, merchandising business, cost of merchandise, and markup. It also provides examples of journal entries for transactions like purchasing merchandise for cash, purchasing merchandise on account, buying supplies on account, making cash payments on accounts and expenses, replenishing petty cash, cash withdrawals by partners, and merchandise withdrawals by partners. The document is intended to teach students how to properly record these common business transactions in an accounting journal.
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Acct20-Chapter10
- 1. Accounting IAccounting I Chapter10 - Journalizing Purchases & Cash Payments
- 2. TTERMS REVIEWERMS REVIEW partnership partner merchandising business retailmerchandising business merchandise Lesson 10-1, page 232Lesson 10-1, page 232 wholesale merchandising business cost of merchandise markup vendor
- 3. TTERMS REVIEWERMS REVIEW PartnershipPartnership Abusiness in which two or more persons combine their assets and skills. Lesson 10-1, page 226Lesson 10-1, page 226
- 4. TTERMS REVIEWERMS REVIEW PartnerPartner Eachmember of a partnership. Lesson 10-1, page 226Lesson 10-1, page 226
- 5. TTERMS REVIEWERMS REVIEW MerchandisingBusinessMerchandising Business A business that purchases and sells goods. Lesson 10-1, page 228Lesson 10-1, page 228
- 6. TTERMS REVIEWERMS REVIEW RetailMerchandising BusinessRetail Merchandising Business A merchandising business that sells to those who use or consume the goods. Lesson 10-1, page 228Lesson 10-1, page 228
- 7. TTERMS REVIEWERMS REVIEW MerchandiseMerchandise Goodsthat a merchandising business purchases to sell. Lesson 10-1, page 228Lesson 10-1, page 228
- 8. TTERMS REVIEWERMS REVIEW WholesaleMerchandising BusinessWholesale Merchandising Business A business that buys and resells merchandise to retail merchandising businesses. Lesson 10-1, page 228Lesson 10-1, page 228
- 9. TTERMS REVIEWERMS REVIEW Costof MerchandiseCost of Merchandise The price a business pays for goods it purchases to sell. Lesson 10-1, page 230Lesson 10-1, page 230
- 10. TTERMS REVIEWERMS REVIEW MarkupMarkup Theamount added to the cost of merchandise to establish the selling price. Lesson 10-1, page 230Lesson 10-1, page 230
- 11. TTERMS REVIEWERMS REVIEW VendorVendor Abusiness from which merchandise is purchased or supplies or other assets are bought. Lesson 10-1, page 230Lesson 10-1, page 230
- 12. EXPANDED JOURNALEXPANDED JOURNAL Lesson10-1, page 229Lesson 10-1, page 229
- 13. PURCHASING MERCHANDISE FORCASHPURCHASING MERCHANDISE FOR CASH November 1. Purchased merchandise for cash, $575.00 Check No. 290. 1. Which accounts are affected? Purchases Cash 4. How is each amount entered in the accounts? Costs increase on the debit side. Assets decrease on the credit side. 3. How is each classification changed? Costs are increased. Assets are decreased. 2. How is each account classified? Purchases is a cost account. Cash is an asset account. Cash Purchases Debit Normal Balance Debit Normal Balance 575.00 575.00 Lesson 10-1, page 231Lesson 10-1, page 231
- 14. 2. Placea check mark in the Account Title column to show that no account title is needed. PURCHASING MERCHANDISE FOR CASHPURCHASING MERCHANDISE FOR CASH 5 1 3 42 3. Write the check number. 1. Write the date. 4. Place a check mark in the Post. Ref. column to show that amounts are not to be posted individually. 5. Write the debit amount. 6. Write the credit amount. 6 Lesson 10-1, page 231Lesson 10-1, page 231
- 15. Work Together &WorkTogether & On Your Own –On Your Own – Page 232Page 232
- 16. TTERMS REVIEWERMS REVIEW purchaseinvoice terms of sale Lesson 10-2, page 237Lesson 10-2, page 237
- 17. TTERMS REVIEWERMS REVIEW PurchaseInvoicePurchase Invoice An invoice used as a source document for recording a purchase on account transaction. Lesson 10-2, page 233Lesson 10-2, page 233
- 18. TTERMS REVIEWERMS REVIEW Termsof SaleTerms of Sale An agreement between a buyer and a seller about payment for merchandise. Lesson 10-2, page 233Lesson 10-2, page 233
- 19. PURCHASE INVOICEPURCHASE INVOICE 1 3 4 2 3.Initials of person who checked invoice. 1. Stamp date received and purchase invoice number. 4. Review vendor’s terms of sale. 2. Place a check mark by each amount. Lesson 10-2, page 233Lesson 10-2, page 233
- 20. PURCHASING MERCHANDISE ONACCOUNTPURCHASING MERCHANDISE ON ACCOUNT November 2. Purchased merchandise on account from Crown Ltd., $2,039.99. Purchase Invoice No. 83. 1. Which accounts are affected? Purchases Accounts Payable 4. How is each amount entered in the accounts? Costs increase on the debit side. Liabilities increase on the credit side. 3. How is each classification changed? Costs are increased. Liabilities are increased. 2. How is each account classified? Purchases is a cost account. Accounts Payable is a liability account. Debit Normal Balance Credit Normal Balance 2,039.00 2,039.00 Lesson 10-2, page 234Lesson 10-2, page 234 Accounts Payable Purchases
- 21. PURCHASING MERCHANDISE ONACCOUNTPURCHASING MERCHANDISE ON ACCOUNT 5 1 3 4 2 3. Write the purchase invoice number in the Doc. No. column. 1. Write the date. 4. Write the credit amount. 2. Write the vendor name in the Account Title column. 5. Write the debit amount. Lesson 10-2, page 234Lesson 10-2, page 234
- 22. BUYING SUPPLIES FORCASHBUYING SUPPLIES FOR CASH Lesson 10-2, page 235Lesson 10-2, page 235 5 1 3 4 2 3. Write the check number. 1. Write the date. 4. Write the debit amount. 2. Write the account title. 5. Write the credit amount.
- 23. 2. Write theaccount title. BUYING SUPPLIES ON ACCOUNTBUYING SUPPLIES ON ACCOUNT 5 1 3 4 2 3. Write the memorandum number. 1. Write the date. 4. Write the debit amount. 5. Write the vendor name. 6. Write the credit amount. 6 Lesson 10-2, page 236Lesson 10-2, page 236
- 24. Work Together &WorkTogether & On Your Own –On Your Own – Page 237Page 237
- 25. CASH PAYMENT ONACCOUNTCASH PAYMENT ON ACCOUNT 5 1 3 4 2 3. Write the check number. 1. Write the date. 4. Write the debit amount. 2. Write the vendor name. 5. Write the credit amount. Lesson 10-3, page 238Lesson 10-3, page 238
- 26. CASH PAYMENT OFAN EXPENSECASH PAYMENT OF AN EXPENSE 5 1 3 4 2 3. Write the check number. 1. Write the date. 4. Write the debit amount. 2. Write the vendor name account title. 5. Write the credit amount. Lesson 10-3, page 239Lesson 10-3, page 239
- 27. Supplies—Store Cash Miscellaneous Expense Advertising ExpenseSupplies—Office CASHPAYMENT TO REPLENISH PETTY CASHCASH PAYMENT TO REPLENISH PETTY CASH November 9. Paid cash to replenish the petty cash fund, $205.00: office supplies, $35.00; store supplies, $47.00; advertising, $92.00; miscellaneous, $31.00. Check No. 297. Accounts Affected Supplies—Office Supplies—Store Advertising Expense Miscellaneous Expense Cash Entered Debit side Debit side Debit side Debit side Credit side Change Increased Increased Increased Increased Decreased Lesson 10-3, page 240Lesson 10-3, page 240 Classification Asset Asset Expense Expense Asset normal balance 205.00 normal balance 92.00 normal balance 35.00 normal balance 31.00 normal balance 47.00
- 28. CASH PAYMENT TOREPLENISH PETTY CASHCASH PAYMENT TO REPLENISH PETTY CASH 5 1 3 4 2 3. Write the check number. 1. Write the date. 4. Write the debit amounts. 2. Write the titles of accounts for which petty cash was used. 5. Write the credit amount. Lesson 10-3, page 240Lesson 10-3, page 240
- 29. CashMichelle Wu, Drawing CASHWITHDRAWALS BY PARTNERSCASH WITHDRAWALS BY PARTNERS November 10. Michelle Wu, partner, withdrew cash for personal use, $1,200.00. Check No. 298. Accounts Affected Michelle Wu, Drawing Cash Entered Debit side Credit side Change Increased Decreased Lesson 10-3, page 241Lesson 10-3, page 241 Classification Drawing Asset normal balance 1,200.00 normal balance 1,200.00
- 30. CASH WITHDRAWALS BYPARTNERSCASH WITHDRAWALS BY PARTNERS 5 1 3 4 2 3. Write the check number. 1. Write the date. 4. Write the debit amount. 2. Write the account title. 5. Write the credit amount. Lesson 10-3, page 241Lesson 10-3, page 241
- 31. PurchasesKarl Koehn, Drawing MERCHANDISEWITHDRAWALS BY PARTNERSMERCHANDISE WITHDRAWALS BY PARTNERS November 12. Karl Koehn, partner, withdrew merchandise for personal use, $300.00. Memorandum No. 53. Accounts Affected Karl Koehn, Drawing Purchases Entered Debit side Credit side Change Increased Decreased Lesson 10-3, page 242Lesson 10-3, page 242 Classification Drawing Cost normal balance 300.00 normal balance 300.00
- 32. MERCHANDISE WITHDRAWALS BYPARTNERSMERCHANDISE WITHDRAWALS BY PARTNERS 5 1 3 4 2 3. Write the memorandum number. 1. Write the date. 4. Write the debit amount. 2. Write the account title Karl Koehn, Drawing. 5. Write the account title Purchases. 6. Write the credit amount. 6 Lesson 10-3, page 242Lesson 10-3, page 242
- 33. Work Together &WorkTogether & On Your Own –On Your Own – Page 243Page 243