Chapter 16 Accounting

Aim: How do you record transactions in a sales journal? Do Now: Take out your Chapter 16 packet Read page 448 and answer the “What Do You Think?” question http://glencoe.com/sites/common_assets/accounting/audit_alex/Player.html

Special Journals Special journals – have amount columns that are used to record debits and credits to specific general ledger accounts Simplify the journalizing and posting process.

Special Journals Journal Transaction Sales Journal Sale of merchandise on account Cash Receipts Journal Receipt of cash Purchases journal Purchase of any asset on account Cash payment journal Payment of cash, including payment by check

Sales Journal Sales Journal – special journal used to record sales of merchandise on account

Recording a Transaction in a Sales Journal (Page 451)

What is tax exempt? Tax exempt organizations are not required to pay tax. Sales tax payable credit column is left blank Total goes in Account Receivable debit column

Posting a Sales Journal entry to A/R Subsidiary Ledger (Page 452) http://glencoe.com/sites/common_assets/accounting/audit_alex/Player.html

Completing the Sales Journal All special journals have amount columns used to record debits and credits to specific general ledger accounts These amount columns simplify posting Only the amount column totals are posted

Completing the Sales Journal For the sales journal, the column totals posted are: Sales Credit Sales Tax Payable Credit Accounts Receivable Debit

Aim: How do I foot, prove, total, and rule the sales and cash receipts journals? Do Now: Take out Problems 16.1 & 16.2 Copy the Aim in your notebook

Footing, Proving, Totaling and Ruling the Sales journal Before posting – calculate and verify the column totals Draw a single rule across the three amount columns (just below the last transaction) Foot the amount columns. A footing – is a column total written in small penciled figures. A footing must be verified. It is written in pencil so that it can be erased if a mistake is discovered.

Footing, Proving, Totaling and Ruling the Sales journal On a separate sheet of paper, test for the equality of debits and credits. The total of the debit column should equal the total of the two credit columns.

Footing, Proving, Totaling and Ruling the Sales journal

Posting the total of the sales credit column

Posting the total of the Sales Tax payable

Posting the total of the Accounts Receivable Debit Column

Journalizing and Posting to the Cash Receipts Journal (page 459) The cash receipts journal is a special journal used to record all cash receipt transactions. Every entry debits the Cash in Bank account.