This presentation presents an idea about different learnings in todays modern day environment, which would be deemed beneficial to everyone.

1. Accounting Is Fun! 1
Chapter 10 & 11
Special Journals

2. Accounting Is Fun! 2
Chapter 10 & 11
 Performance objectives:
1. New accounts for merchandising business
2. Invoices
3. Cash discounts, credit card expense and notes payable
4. Sales journal
5. Purchase journal
6. Schedule of accounts receivable
7. Schedule of accounts payable
8. Sales returns and allowances
9. Purchase returns and allowances
10. Cash receipts journal
11. Cash payments journal

3. Accounting Is Fun! 3
Reminder
 Contra accounts:
 Attached to another account
 Opposite “+” & “-”

4. Accounting Is Fun! 4
Describe The Specific Accounts Used By
A Merchandising Firm
= + + -
+ - - + - + - + + -
DR CR DR CR DR CR DR CR DR CR
+ - - + - + + -
DR CR DR CR DR CR DR CR
+ - - +
DR CR DR CR
+ - - +
DR CR DR CR
+ -
DR CR
Freight In
Sales Returns
and Allowances
Purchases Returns
and Allowances
Sales Discount
Purchases
Discounts
Expenses
Merchandise
Inventory
Sales Tax
Payable Sales Purchases
Assets Liabilities Owner's Equity Revenues

5. Accounting Is Fun! 5
Accounts Used by
Merchandising Firm
 Nine new accounts (T accounts on page 330)
 Assets:
1. Merchandising Inventory
 Stock of goods that company buys & intends to resell
 Examples:
 Shoes in shoe store
 Boomerangs and kites in kite store
 This account shows all the inventory after Purchases
account is closed

6. Accounting Is Fun! 6
Accounts Used by
Merchandising Firm
 Liabilities:
2. Sales Tax Payable
 We collect sales tax for the government, and
thus we must record the liability when we
receive the money
 We will pay later

7. Accounting Is Fun! 7
Accounts Used by
Merchandising Firm
 Revenues:
3. Sales account
 Account used to record sales revenue from selling shoes,
boomerangs, groceries, etc.
 Contra revenues:
4. Sales Returns & Allowances
 From seller’s point of view, account used to record returned
merchandise or reductions in revenues because merchandise was
damaged
 Reduction to revenues
5. Sales Discounts
 From seller’s point of view, account used to record cash discounts
given for prompt payment of “on account” sales
 Reduction to revenues

8. Accounting Is Fun! 8
Accounts Used by
Merchandising Firm
 Expenses:
6. Purchases
 Account used to record the cost of merchandise bought for resale
 Only for purchased items you intend to resell
 At closing, we have to count inventory to see if we used all our purchases
9. Freight In account
 Account used to record shipping costs for purchases
 Contra expenses:
7. Purchases Returns & Allowances
 From purchaser’s point of view, account used to record returned
merchandise or reductions in expenses because merchandise was
damaged
 Reduction to expenses
8. Purchases Discounts
 From purchaser’s point of view, account used to record cash discounts
earned for prompt payment of “on account” purchases

9. Accounting Is Fun! 9
Invoices
 Seller issues invoice
 Items shipped
 Cost
 Terms
 Mode of shipping
 Seller’s point of view:
 Sales invoice
 Increase sales revenue
 Buyer’s point of view:
 Purchase invoice
 Increase purchases

10. Accounting Is Fun! 10
Invoice No. 4369
INVOICE
Customer Misc
Name Date 2/23/2003
Address Order No.
City Watermore State MD ZIP 40025 Rep
Phone FOB Shipping Point
Qty Unit Price TOTAL
15 10.00
$ 150.00
$
8 12.50
$ 100.00
$
SubTotal 250.00
$
Shipping
Payment Select One… Tax Rate(s)
Comments TOTAL 250.00
$
Name
CC #
Expires
Office Use Only
Our Customers Have Many Happy Returns!
Gel Boomerangs
2124 Kittredge St. PMB 61
Berkeley, CA 94704
Kite Flight
1414 43rd Ave.
Description
Bellens
Duece
Terms: 2/10,N/30
Invoice No. 104963
INVOICE
Customer Misc
Name Date 2/28/2003
Address Order No.
City Berkeley State CA ZIP 94704 Rep
Phone FOB Destination
Qty Unit Price TOTAL
5 90.00
$ 450.00
$
Terms: 1/15,N/45
SubTotal 450.00
$
Shipping
Payment Select One… Tax Rate(s)
Comments TOTAL 450.00
$
Name
CC #
Expires
Office Use Only
Plywood Wholesalers
5543 92nd Ave. S.
Alderwood, CA 92110
Gel Boomerangs
2124 Kittredge St. PMB 61
Description
Sheets 10 ply, 5mm, Finish Birch
Invoices

11. Accounting Is Fun! 11
Mode of Shipping
 FOB destination
 Seller pays for shipping (freight)
 Title (rights of ownership) transfer to buyer when the goods
are received
 FOB shipping
 Buyer pays for shipping (freight)
 Title (rights of ownership) transfer to buyer when the goods
are delivered to the shipper
 Shipping costs:
 Listed on invoice & paid with invoice total
or
 Paid directly to shipper
 *FOB = free on board

12. Accounting Is Fun! 12
Customers & Vendors
 When we buy something from a business, they
are called:
 Suppliers
 Creditors
 Vendor
 When we sell something to another business or
individual, they are called:
 Customer

13. Accounting Is Fun! 13
Cash Discounts
 Discounts given as an incentive to pay the bill
early
 Why?
 Cash is king!
 Or, “Cash is Queen! (Why not?)
 Seller records as a “Sales Discount”
 Reduction in sales
 Buyer records as a “Purchase Discount”
 Reduction in purchases
 Not all sellers offer cash discounts

14. Accounting Is Fun! 14
“Purchases Discount”
Reduction in Purchases
2/10, N/30
2% Discount on Invoice
Total (after any returns or
allow. & not Including
Freight) If Paid Within…
10 Days From The Date
on the Invoice – Start
Counting One Day After
Invoice Date
“Net”
If You Don’t Take
Discount, You Must Pay
“Net Due” By…
30 Days After Invoice
Date
“Two Ten Net Thirty”

15. Accounting Is Fun! 15
“Sales Discount”
Reduction in Sales
2/10, N/30
2% Discount on Invoice
Total (after any returns or
allow. & not Including
Freight) If Paid Within…
10 Days From The Date
on the Invoice – Start
Counting One Day After
Invoice Date
“Net”
If You Don’t Take
Discount, You Must Pay
“Net Due” By…
30 Days After Invoice
Date
“Two Ten Net Thirty”

16. Accounting Is Fun! 16
Credit Period
 The time the seller allows the buyer before full
payment on a charge sale has to be made
 2/10, N/30
 The “N/30” is the credit period
 The credit period for the customer is 30
days long

17. Accounting Is Fun! 17
Invoice No. 4369
INVOICE
Customer Misc
Name Date 2/23/2003
Address Order No.
City Watermore State MD ZIP 40025 Rep
Phone FOB Shipping Point
Qty Unit Price TOTAL
15 10.00
$ 150.00
$
8 12.50
$ 100.00
$
SubTotal 250.00
$
Shipping
Payment Select One… Tax Rate(s)
Comments TOTAL 250.00
$
Name
CC #
Expires
Office Use Only
Our Customers Have Many Happy Returns!
Gel Boomerangs
2124 Kittredge St. PMB 61
Berkeley, CA 94704
Kite Flight
1414 43rd Ave.
Description
Bellens
Duece
Terms: 2/10,N/30
Invoice No. 104963
INVOICE
Customer Misc
Name Date 2/28/2003
Address Order No.
City Berkeley State CA ZIP 94704 Rep
Phone FOB Destination
Qty Unit Price TOTAL
5 90.00
$ 450.00
$
Terms: 1/15,N/45
SubTotal 450.00
$
Shipping
Payment Select One… Tax Rate(s)
Comments TOTAL 450.00
$
Name
CC #
Expires
Office Use Only
Plywood Wholesalers
5543 92nd Ave. S.
Alderwood, CA 92110
Gel Boomerangs
2124 Kittredge St. PMB 61
Description
Sheets 10 ply, 5mm, Finish Birch
Determine Cash Discounts According To
Credit Terms

18. Accounting Is Fun! 18
Determine Cash Discounts According To
Credit Terms
 Sales discounts
 Kite Flight (our customer) pays us within the
10 day discount period: 2/10,N/30
Invoice Total = $250.00
Discount
250 x 2% = $5.00
Cash We Receive $245.00
Description Debit Credit
2003
Feb 27 Cash 245.00
Sales Discount 5.00
Accounts Receivable - Kite Flight 250.00
Kite Flight Pays by Ch# 2310, paying w ithin discount period
Date

19. Accounting Is Fun! 19
Determine Cash Discounts According To
Credit Terms
 Purchase discounts
 We pay our supplier (Plywood Wholesaler)
within the 15 day discount period: 1/15,N/45
Invoice Total = $450.00
Discount
450 x 1% = $4.50
Cash We Pay $445.50
Description Debit Credit
2003
Feb 28 Accounts Payable - Plywood Wholesaler 450.00
Purchase Discount 4.50
Cash 445.50
Pay Inv # 344 w ith Ch# 4567, paying w ithin discount period
Date

20. Accounting Is Fun! 20
Credit Card Expense
 When businesses accept
credit card payments
from customers, the
business must pay the
credit card company a fee
 The expense is called:
 Credit card expense
Invoice Total for
5 Boomerangs = $100.00
(8.25%) Sales Tax
100 x 8.25% = $8.25
Total $108.25
(3.5%) Credit Card Expense
108.25 x 3.5% = $3.79
Credit Card Co. Deposits $ in
Business Checking Account
108.25 - 3.79 = $104.46
Description Debit Credit
2003
Feb 26 Cash 104.46
Credit Card Expense 3.79
Sales Tax Payable 8.25
Boomerang Sales Revenue 100.00
Credit Card Sales: Deposit from Credit Card Company for sale of boomerangs
Date

21. Accounting Is Fun! 21
Notes
 Notes Payable
 The account
containing the
balance of
promissory notes
 Liability
 “Debt”
 Promissory Note
 A written promise
to pay a specified
amount at a
specified time
 Issuer records:
 Notes receivable
 Asset
 Holder records:
 Notes payable
 Liability

22. Accounting Is Fun! 22
New Transaction for this Chapter:
 When we borrow $600 from the bank, the account on our
books is called:
 Notes payable (We Owe  Debt)
 When we pay off the notes payable and the interest we
owe ($600 N.P. & $60 interest):
Description Debit Credit
2001
March 15 Cash 600.00
Notes Payable 600.00
Received Loan from BofA @ 10%
Date
Description Debit Credit
2002
March 15 Notes Payable 600.00
Interest Expense 60.00
Cash 660.00
Pay BofA for Loan w ith Interest of $60 w ith Ch# 4467
Date

23. Accounting Is Fun! 23
Special Journals
 Books of original entry
 (S) Sales Journal (chapter 10):
 Merchandise sales on account
 (P) Purchase Journal (chapter 10)
 Merchandise purchases on account
 (CR) Cash Receipts journal (chapter 11)
 Cash Received
 (CP) Cash Payments journal (chapter 11)
 Cash Payments
 (J) the General Journal handles all other
transactions

24. Accounting Is Fun! 24
Special Journals
 Why special journals? Special journals help to:
 Avoid repetitious recording activities
 Separate different duties within the accounting
department which help to:
 Increases efficiency
 Reduce theft and fraud
 Separation of duties

25. Accounting Is Fun! 25
Sales Journal - Chapter 10
 Journalizing:
 Record “on account” sales
 Page 336
 Date
 Invoice #
 Name
 Posting reference
 Accounts Receivable
 Debit
 Sales Tax Payable
 Credit
 Sales
 Credit
 DR = CR on every line!
 Posting:
 Picture, page 337
 Each time you record a business
transaction:
 Post amount to customer’s
account in the Accounts
Receivable subsidiary ledger
 After you post, place check
mark in the sales journal
posting reference column next
to the customer's name
 At the end of the period
 Double lines (page 336)
 Check that DR = CR
 Post all totals to general
ledger
 After you post, place account
numbers below column totals
in sales journal

26. Accounting Is Fun! 26
Accounts Receivable Ledger
 We have a separate ledger just for the customers
accounts receivable!!
 “Subsidiary ledger”
 This ledger only has accounts for customers
 One for each customer: see page 338 to 339
 Most computerized systems use account numbers, not check
marks during posting
 (Accounts Receivable) is listed in the general ledger:
 At the end of the period we post the accounts receivable
total amount from the sales journal
 “Controlling account”
 At the end of the period, we must prepare a Schedule of
Accounts Receivable!!
 Picture on page 341

27. Accounting Is Fun! 27
Purchase Journal - Chapter 10
 The Purchase Journal is the flip-side of the
Sales Journal
 The company selling uses the Sales Journal
(chapter 10)
 The company buying uses the Purchase Journal
(chapter 10)
 Do companies use both?
 Yes!

28. Accounting Is Fun! 28
Record Transactions in 3-Column
Purchase Journal (Ch 10)
 Journalizing:
 Record “on account”
merchandise purchases
 Page 374
 Journalizing date
 Name
 Invoice #
 Invoice date!
 Terms
 PR
 Accounts Payable
 Credit
 Freight in
 Debit
 Purchases
 Debit
 DR = CR on every line!
 Posting (pages 347 to 350)
 Each time you record a business
transaction:
 Post amount to supplier’s
account in the Accounts
Payable subsidiary ledger
 After you post, place check
mark in the Purchases Journal
posting reference column
 At the end of the period
 Double lines
 Crossfooting:
 Accounts payable column = sum of all
debits?
 Horizontal & vertical addition to prove
DR = CR
 Post all totals to general
ledger
 After you post, place account
numbers below column totals
in purchases journal

29. Accounting Is Fun! 29
Accounts Payable Ledger
 We have a separate ledger just for the suppliers’
accounts payable!
 “Subsidiary ledger”
 This ledger only has accounts for suppliers
 One for each supplier: see page 349 to 350
 Most computerized systems use account numbers, not check
marks during posting
 (Accounts Payable) is listed in the general ledger:
 At the end of the period we post the accounts payable total
amount from the purchase journal
 “Controlling account”
 At the end of the period, we must prepare a Schedule of
Accounts Payable!
 Picture on page 350

30. Accounting Is Fun! 30
Journalize “Sales Returns &
Allowances”
 “Sales Returns & Allowances”
 Contra revenue
 Reduces the sales revenue account
 Credit memorandums (example page 342)
 “Written statement indicating a seller’s willingness to
reduce the amount of the buyer’s debt.”
 Seller says to customer: “I'll reduce the amount you owe
us.”
 Dodson Plumbing Supply tells Barlow that they will
reduce the amount he owns them by $54.00
 Journal entry: credit Accounts Receivable, debit “Sales
Returns & Allowances”
 Why is it called “credit” memorandum?
 Because it’s from the seller’s point of view
 Credit to Accounts Receivable!

31. Accounting Is Fun! 31
Post “Sales Returns &
Allowances”
 Post “Sales Returns & Allowances” to “Sales
Returns & Allowances” account
 Then post twice to the Account Receivable
accounts
 What do you mean I have to post twice?
 Page 343
 Because we have to post once to the Account
Receivable in the General Ledger & once to the
customer’s individual Accounts Receivable in the
Accounts Receivable subsidiary ledger
 113/√

32. Accounting Is Fun! 32
Journalize and Post “Sales
Returns & Allowances”
 Returns involving sales tax
 Page 344

33. Accounting Is Fun! 33
Journalize Transactions Involving “Purchase
Returns & Allowances” in General Journal
 Flip side of Sales Returns & Allowances
 Excellent note left upper corner page 351
 The buyer receives a credit memorandum
 Page 351 – good t-account example
 Journalizing & posting – page 352
 Must post to both:
 Accounts Payable (control account) in General Ledger
 Individual’s Accounts Payable in Accounts Payable
subsidiary ledger
 221/√

34. Accounting Is Fun! 34
Cash Receipts Journal (Ch 11)
 Contains all transactions in which
cash is received
 All debits to cash!
 If you receive cash, you must put
it here!
 Example on page 384
 Each line represents a
transaction where we receive
cash
 DR = CR for each line
 All the way at the end:
 Cash debit
 Credit card debit
 All the rest are credits
 Post after each journal entry:
 Accounts Receivable (PR = √)
 “other accounts” (PR = # for
that account)
 At the end of the period:
 Date for last day
 Single line before totaling
 Double line after totals
 Post all the column totals
 After posting, place account #
under column totals
 Place “X” under “other
accounts” to indicate that you
already posted these
amounts
 Make sure that DR = CR

35. Accounting Is Fun! 35
Cash Payments Journal (Ch 11)
 Contains all transactions in which
cash goes out, or is paid out
 All credits to cash!
 If you pay cash, you must put it
here!
 Remember rule about cash:
 Always pay with a check!
 Example on page 391
 Each line represents a
transaction where we write a
check to pay cash
 Date
 List checks in consecutive
order (even void checks)
 Name of account debited
 All the way at the end
 Cash credit
 Purchase discount credit
 All the rest are debits
 DR = CR for each line
 Post after each journal entry:
 Accounts Payable (PR = √)
 “other accounts” (PR = # for that
account)
 At the end of the period:
 Date for last day
 Single line before totaling
 Double line after totals
 Post all the column totals
 After posting, place
account # under column
totals
 Place “X” under “other
accounts” to indicate that
you already posted these
amounts
 Make sure that DR =
CR

36. Accounting Is Fun! 36
Check & Deposit Register
 When we do Spa Magic, in addition to the cash
receipts and cash payments journals, we will
have to record all checking account activity in a
checkbook register

37. Accounting Is Fun! 37
Good Note
 Page 398:
 Post from special journals in this order:
 Sales journal
 Purchase journal
 Cash receipts journal
 Cash payments journal

38. Accounting Is Fun! 38
Review Of Chapter 10 & 11
 Sales Journal
 Purchase Journal
 Cash Receipts Journal
 Cash Payments Journal

39. Accounting Is Fun! 39
Sales Journal
 Journalizing:
 Record “on account” sales
 Page 336
 Date
 Invoice #
 Name
 Posting reference
 Accounts Receivable
 Debit
 Sales Tax Payable
 Credit
 Sales
 Credit
 DR = CR on every line!
 Posting:
 Picture, page 337
 Each time you record a business
transaction:
 Post amount to customer’s
account in the Accounts
Receivable subsidiary ledger
 After you post, place check
mark in the sales journal
posting reference column next
to the customer's name
 At the end of the period
 Double lines (page 336)
 Check that DR = CR
 Post all totals to general
ledger
 After you post, place account
numbers below column totals
in sales journal

40. Accounting Is Fun! 40
Record Transactions in 3-Column
Purchase Journal
 Journalizing:
 Record “on account”
merchandise purchases
 Page 374
 Journalizing date
 Name
 Invoice #
 Invoice date!
 Terms
 PR
 Accounts Payable
 Credit
 Freight in
 Debit
 Purchases
 Debit
 DR = CR on every line!
 Posting (pages 347 to 350)
 Each time you record a business
transaction:
 Post amount to supplier’s account in
the Accounts Payable subsidiary
ledger
 After you post, place check mark in
the Purchases Journal posting
reference column
 At the end of the period
 Double lines
 Crossfooting:
 Accounts payable column = sum of all debits?
 Horizontal & vertical addition to prove DR = CR
 Post all totals to general ledger
 After you post, place account
numbers below column totals in
purchases journal

41. Accounting Is Fun! 41
Cash Receipts Journal
 Contains all transactions in which
cash is received
 All debits to cash!
 If you receive cash, you must put
it here!
 Example on page 384
 Each line represents a
transaction where we receive
cash
 DR = CR for each line
 All the way at the end:
 Cash debit
 Credit card debit
 All the rest are credits
 Post after each journal entry:
 Accounts Receivable (PR = √)
 “other accounts” (PR = # for
that account)
 At the end of the period:
 Date for last day
 Single line before totaling
 Double line after totals
 Post all the column totals
 After posting, place account #
under column totals
 Place “X” under “other
accounts” to indicate that you
already posted these
amounts
 Make sure that DR = CR

42. Accounting Is Fun! 42
Cash Payments Journal
 Contains all transactions in which
cash goes out, or is paid out
 All credits to cash!
 If you pay cash, you must put it
here!
 Remember rule about cash:
 Always pay with a check!
 Example on page 391
 Each line represents a
transaction where we write a
check to pay cash
 Date
 List checks in consecutive
order (even void checks)
 Name of account debited
 All the way at the end
 Cash credit
 Purchase discount credit
 All the rest are debits
 DR = CR for each line
 Post after each journal entry:
 Accounts Payable (PR = √)
 “other accounts” (PR = # for that
account)
 At the end of the period:
 Date for last day
 Single line before totaling
 Double line after totals
 Post all the column totals
 After posting, place
account # under column
totals
 Place “X” under “other
accounts” to indicate that
you already posted these
amounts
 Make sure that DR =
CR

43. Accounting Is Fun! 43
Demonstration Problem
 Journalize and post one transaction in the sales
journal
 Look at a schedule of accounts receivable

44. Accounting Is Fun! 44
Page 32
Sales Tax 8.00%
Inv.
No. Customer's Name
Post.
Ref.
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2002 1
2 July 1 788 Denise Hogan 1,438.83 106.58 1,332.25 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 31 1,438.83 106.58 1,332.25 22
Date
Sales Journal
Transaction on One Line

45. Accounting Is Fun! 45
Post to Subsidiary Ledger
Denise Hogan
322 West James, Apartment A9
Whalen, WA 98671
Item
Post.
Ref. Debit Credit Balance
2005
July 1 S 32 1,438.83 1,438.83
Total Owed: 1,438.83
Address
Date
Name

46. Accounting Is Fun! 46
Place Post. Ref. in Journal!
Page 32
Sales Tax 8.00%
Inv.
No. Customer's Name
Post.
Ref.
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2005 1
2 July 1 788 Denise Hogan √ 1,438.83 106.58 1,332.25 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 31 1,438.83 106.58 1,332.25 22
Date
Sales Journal

47. Accounting Is Fun! 47
Total at End of Period and Post Totals
Page 32
Sales Tax 8.00%
Inv.
No. Customer's Name
Post.
Ref.
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2005 1
2 July 1 788 Denise Hogan √ 1,438.83 106.58 1,332.25 2
3 6 789 The River Riders √ 978.75 978.75 3
4 8 790 Chris Turk √ 4,590.00 340.00 4,250.00 4
5 9 791 Riverside Rentals √ 15,721.00 15,721.00 5
6 14 792 Kent Recreation Department √ 21,038.40 1,558.40 19,480.00 6
7 17 793 Maple Van Auken √ 3,980.34 294.84 3,685.50 7
8 23 794 River Tours, Inc √ 7,038.00 7,038.00 8
9 23 795 Vickie and Larry Currie √ 842.08 62.38 779.70 9
10 24 796 Sundowner Tours √ 6,144.00 6,144.00 10
11 31 797 Kathy Walker √ 398.90 29.55 369.35 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 31 62,170.30 2,391.75 59,778.55 22
Date
Sales Journal
Post

48. Accounting Is Fun! 48
Post Accounts Receivable
Account Accounts Receivable Account No. 114
Debit Credit
2005
July 1 Balance √ 65,458.04 65,458.04
10 J 168 23.25 65,434.79
21 J 168 108.00 65,326.79
31 S 32 62,170.30 127,497.09
General Ledger
Date Item
Post.
Ref. Debit Credit
Balance

49. Accounting Is Fun! 49
Post. Ref. = 114
Page 32
Sales Tax 8.00%
Inv.
No. Customer's Name
Post.
Ref.
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2005 1
2 July 1 788 Denise Hogan √ 1,438.83 106.58 1,332.25 2
3 6 789 The River Riders √ 978.75 978.75 3
4 8 790 Chris Turk √ 4,590.00 340.00 4,250.00 4
5 9 791 Riverside Rentals √ 15,721.00 15,721.00 5
6 14 792 Kent Recreation Department √ 21,038.40 1,558.40 19,480.00 6
7 17 793 Maple Van Auken √ 3,980.34 294.84 3,685.50 7
8 23 794 River Tours, Inc √ 7,038.00 7,038.00 8
9 23 795 Vickie and Larry Currie √ 842.08 62.38 779.70 9
10 24 796 Sundowner Tours √ 6,144.00 6,144.00 10
11 31 797 Kathy Walker √ 398.90 29.55 369.35 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
31 62,170.30 2,391.75 59,778.55
114
Date
Sales Journal
( )
Post

50. Accounting Is Fun! 50
Post Sales Tax Payable
Account Sales Tax Payable Account No 213
Debit Credit
2005
July 1 Balance √ 3,085.19 3,085.19
14 CP 41 3,085.19 0.00
21 J 168 8.00 8.00
31 S 32 2,391.75 2,383.75
General Ledger
Date Item Debit Credit
Balance
Post.
Ref.

51. Accounting Is Fun! 51
Post. Ref. = 213
Page 32
Sales Tax 8.00%
Inv.
No. Customer's Name
Post.
Ref.
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2005 1
2 July 1 788 Denise Hogan √ 1,438.83 106.58 1,332.25 2
3 6 789 The River Riders √ 978.75 978.75 3
4 8 790 Chris Turk √ 4,590.00 340.00 4,250.00 4
5 9 791 Riverside Rentals √ 15,721.00 15,721.00 5
6 14 792 Kent Recreation Department √ 21,038.40 1,558.40 19,480.00 6
7 17 793 Maple Van Auken √ 3,980.34 294.84 3,685.50 7
8 23 794 River Tours, Inc √ 7,038.00 7,038.00 8
9 23 795 Vickie and Larry Currie √ 842.08 62.38 779.70 9
10 24 796 Sundowner Tours √ 6,144.00 6,144.00 10
11 31 797 Kathy Walker √ 398.90 29.55 369.35 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 31 62,170.30 2,391.75 59,778.55 22
23 114 213 23
Date
Sales Journal
( ) ( )
Post

52. Accounting Is Fun! 52
Post Sales
Account Sales Account No 411
Post.
Ref.
Debit Credit
2005
July 31 S 32 59,778.55 59,778.55
General Ledger
Date Item Debit Credit
Balance

53. Accounting Is Fun! 53
Post. Ref. = 411
Page 32
Sales Tax 8.00%
Inv.
No. Customer's Name
Post
Ref
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2005 1
2 July 1 788 Denise Hogan √ 1,438.83 106.58 1,332.25 2
3 6 789 The River Riders √ 978.75 978.75 3
4 8 790 Chris Turk √ 4,590.00 340.00 4,250.00 4
5 9 791 Riverside Rentals √ 15,721.00 15,721.00 5
6 14 792 Kent Recreation Department √ 21,038.40 1,558.40 19,480.00 6
7 17 793 Maple Van Auken √ 3,980.34 294.84 3,685.50 7
8 23 794 River Tours, Inc √ 7,038.00 7,038.00 8
9 23 795 Vickie and Larry Currie √ 842.08 62.38 779.70 9
10 24 796 Sundowner Tours √ 6,144.00 6,144.00 10
11 31 797 Kathy Walker √ 398.90 29.55 369.35 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 31 62,170.30 2,391.75 59,778.55 22
23 114 213 411 23
Date
Sales Journal
( ) ( ) ( )

54. Accounting Is Fun! 54
Page 32
Inv.
No. Customer's Name
Post.
Ref.
Accounts
Receivable
Debit
Sales Tax
Payable
Credit
Sales
Credit
1 2005 1
2 July 1 788 Denise Hogan √ 1,438.83 106.58 1,332.25 2
3 6 789 The River Riders √ 978.75 978.75 3
4 8 790 Chris Turk √ 4,590.00 340.00 4,250.00 4
5 9 791 Riverside Rentals √ 15,721.00 15,721.00 5
6 14 792 Kent Recreation Department √ 21,038.40 1,558.40 19,480.00 6
7 17 793 Maple Van Auken √ 3,980.34 294.84 3,685.50 7
8 23 794 River Tours, Inc √ 7,038.00 7,038.00 8
9 23 795 Vickie and Larry Currie √ 842.08 62.38 779.70 9
10 24 796 Sundowner Tours √ 6,144.00 6,144.00 10
11 31 797 Kathy Walker √ 398.90 29.55 369.35 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 31 62,170.30 2,391.75 59,778.55 22
23 114 213 411 23
DR = CR
62,170.30 Yes 62,170.30
Date
Sales Journal
Prove DR = CR
( ) ( ) ( )

55. Accounting Is Fun! 55
At the End of the Period, Track
What Customers Owe You
Vickie and Larry Currie 842.08
$
Denise Hogan 1,438.83
Kent Recreation Department 21,038.40
Chris Turk 4,590.00
Maple Van Auken 3,980.34
Kathy Walker 398.90
The River Riders 978.75
Riverside Rentals 15,721.00
River Tours 7,038.00
Sundowner Tours 6,144.00
Total Accounts Receivable 62,170.30
$
Dean's Kayaks
Schedule of Accounts Receivable
July 31, 2005

56. Accounting Is Fun! 56
Demonstration Problem
 We will journalize and post a transaction in the
cash payments journal

57. Accounting Is Fun! 57
Cash Payments Journal with a
Previously Recorded Transaction
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 4
5 5
Date
Cash Payments Journal

58. Accounting Is Fun! 58
Record Payment of
Advertising Expense
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 8,000.00 8,000.00 4
5 5
Date
Cash Payments Journal

59. Accounting Is Fun! 59
Post to Advertising Expense
Account Advertising Expense Account No 613
Post.
Ref. Debit Credit
20—
July 3 CP 41 8,000.00 8,000.00
General Ledger
Date Item Debit Credit
Balance

60. Accounting Is Fun! 60
Post. Ref. = 613
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 5
Date
Cash Payments Journal

61. Accounting Is Fun! 61
At End of Period, Total All
Columns
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discounts
Credit
Cash
Credit
1 20— 1 1
2 July 2 1753 Mortgage Payable 220 369.99 2
3 3 Interest Expense 812 1,945.46 2,315.45 3
4 4 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 5 1755 All-Sports Apparel √ 1,024.10 1,024.10 5
6 6 1756 Prepaid Insurance 118 1,775.42 1,775.42 6
7 7 1757 Apparel Outlet √ 9,827.00 196.54 9,630.46 7
8 skip 8 1758 KayakCo √ 28,155.00 563.10 27,591.90 8
28 lines 31 1775 Utilities Expense 657 128.90 128.90 28
29 31 1776 Utilities Expense 657 148.85 148.85 29
30 31 1777 State Unemployment Tax Payable 216 185.00 185.00 30
31 31 Miscellaneous Expense 659 12.00 12.00 31
31 24,720.93 61,750.87 1,125.69 85,346.11
Date
Cash Payments Journal

62. Accounting Is Fun! 62
Other Accounts Debit Post.
Ref. = X
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discounts
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 3 1755 All-Sports Apparel √ 1,024.10 1,024.10 5
6 8 1756 Prepaid Insurance 118 1,775.42 1,775.42 6
7 9 1757 Apparel Outlet √ 9,827.00 196.54 9,630.46 7
8 skip 9 1758 KayakCo √ 28,155.00 563.10 27,591.90 8
28 lines 31 1775 Utilities Expense 657 128.90 128.90 28
29 31 1776 Utilities Expense 657 148.85 148.85 29
30 31 1777 State Unemployment Tax Payable 216 185.00 185.00 30
31 31 Miscellaneous Expense 659 12.00 12.00 31
31 24,720.93 61,750.87 1,125.69 85,346.11
(X)
Date
Cash Payments Journal
POST

63. Accounting Is Fun! 63
Post to 111
Account Cash Account No 111
Post.
Ref. Debit Credit
20—
July 1 Balance √ 51,278.10 51,278.10
31 CR 37 97,355.43 148,633.53
31 CP 41 85,346.11 63,287.42
General Ledger
Date Item Debit Credit
Balance

64. Accounting Is Fun! 64
Post. Ref. = 111
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 3 1755 All-Sports Apparel √ 1,024.10 1,024.10 5
6 8 1756 Prepaid Insurance 118 1,775.42 1,775.42 6
7 9 1757 Apparel Outlet √ 9,827.00 196.54 9,630.46 7
8 skip 9 1758 KayakCo √ 28,155.00 563.10 27,591.90 8
28 lines 31 1775 Utilities Expense 657 128.90 128.90 28
29 31 1776 Utilities Expense 657 148.85 148.85 29
30 31 1777 State Unemployment Tax Payable 216 185.00 185.00 30
31 31 Miscellaneous Expense 659 12.00 12.00 31
31 24,720.93 61,750.87 1,125.69 85,346.11
(X) (111)
Date
Cash Payments Journal
POST

65. Accounting Is Fun! 65
Post to 211
Account Accounts Payable Account No 211
Post.
Ref. Debit Credit
20—
July 1 Balance √ 16,865.82 16,865.82
15 J 168 89.95 16,775.87
31 P 29 57,527.50 74,303.37
31 CP 41 61,750.87 12,552.50
General Ledger
Date Item Debit Credit
Balance

66. Accounting Is Fun! 66
Post. Ref. = 211
Page 41
Date
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 3 1755 All-Sports Apparel √ 1,024.10 1,024.10 5
6 8 1756 Prepaid Insurance 118 1,775.42 1,775.42 6
7 9 1757 Apparel Outlet √ 9,827.00 196.54 9,630.46 7
8 skip 9 1758 KayakCo √ 28,155.00 563.10 27,591.90 8
28 lines 31 1775 Utilities Expense 657 128.90 128.90 28
29 31 1776 Utilities Expense 657 148.85 148.85 29
30 31 1777 State Unemployment Tax Payable 216 185.00 185.00 30
31 31 Miscellaneous Expense 659 12.00 12.00 31
31 24,720.93 61,750.87 1,125.69 85,346.11
(X) (211) (111)
Cash Payments Journal
POST

67. Accounting Is Fun! 67
Post to 513
Account Purchases Discount Account No 513
Post.
Ref. Debit Credit
20—
July 31 CP 41 1,125.69 1,125.69
General Ledger
Date Item Debit Credit
Balance

68. Accounting Is Fun! 68
Post. Ref. = 513
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 3 1755 All-Sports Apparel √ 1,024.10 1,024.10 5
6 8 1756 Prepaid Insurance 118 1,775.42 1,775.42 6
7 9 1757 Apparel Outlet √ 9,827.00 196.54 9,630.46 7
8 skip 9 1758 KayakCo √ 28,155.00 563.10 27,591.90 8
28 lines 31 1775 Utilities Expense 657 128.90 128.90 28
29 31 1776 Utilities Expense 657 148.85 148.85 29
30 31 1777 State Unemployment Tax Payable 216 185.00 185.00 30
31 31 Miscellaneous Expense 659 12.00 12.00 31
31 24,720.93 61,750.87 1,125.69 85,346.11
(X) (211) (513) (111)
Date
Cash Payments Journal

69. Accounting Is Fun! 69
Prove DR = CR
Page 41
Ck.
No. Account Name
Post.
Ref.
Other
Accounts
Debit
Accounts
Payable
Debit
Purchases
Discount
Credit
Cash
Credit
1 20— 1
2 July 1 1753 Mortgage Payable 220 369.99 2
3 Interest Expense 812 1,945.46 2,315.45 3
4 3 1754 Advertising Expense 613 8,000.00 8,000.00 4
5 3 1755 All-Sports Apparel √ 1,024.10 1,024.10 5
6 8 1756 Prepaid Insurance 118 1,775.42 1,775.42 6
7 9 1757 Apparel Outlet √ 9,827.00 196.54 9,630.46 7
8 skip 9 1758 KayakCo √ 28,155.00 563.10 27,591.90 8
28 lines 31 1775 Utilities Expense 657 128.90 128.90 28
29 31 1776 Utilities Expense 657 148.85 148.85 29
30 31 1777 State Unemployment Tax Payable 216 185.00 185.00 30
31 31 Miscellaneous Expense 659 12.00 12.00 31
31 24,720.93 61,750.87 1,125.69 85,346.11
(X) (211) (513) (111)
DR = CR
86,471.80 Yes 86,471.80
Date
Cash Payments Journal