CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Accounting Bell Ringer Tuesday, February 21 BELL RINGER Purchases Journal Short Answer worksheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Tuesday, February 21 AGENDA Chapter 9: Lesson 9-2: Journalizing Cash Payment Using a Cash Payments Journal Show Professional Reading for Q3 This time we are “really” going to complete this task!!!!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 9-2 CASH PAYMENTS JOURNAL page 242

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 9-2 CASH PAYMENT OF AN EXPENSE page 243 November 2. Paid cash for advertising, $ Check No Write the date. 2.Write the account title. 3.Write the check number. 4.Write the debit amount. 5.Write the credit amount

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 9-2 BUYING SUPPLIES FOR CASH page 243 November 5. Paid cash for office supplies, $ Check No Write the date. 2.Write the account title. 3.Write the check number. 4.Write the debit amount. 5.Write the credit amount

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning CASH PAYMENTS FOR PURCHASES Cash payments for purchases: The retail price listed in a manufacturer/wholesalers catalog or on the internet is referred to as the ______ _______. If a business purchases a number of products, the price can be quoted as the list price less the _________ __________. The purchases receives a discount for buying large quantities. When a trade discount is granted, the seller’s invoice shows the _________ _________ ________. This amount after the discount has been deducted is the invoice amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning The trade discount is calculated as follows in two steps: The list price for 10 ceramic molds in $ The invoice price is the list price less a 60% trade discount. STEP 1 List Price x trade discount rate = trade discount ________ x _______________ = ___________ STEP 2 Total list price - trade discount = Invoice amount __________ - __________ = ___________

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 9-2 CASH PAYMENTS FOR PURCHASES page 244 November 7. Purchased merchandise for cash, $ Check No Write the date. 2.Write the account title. 3.Write the check number. 4.Write the debit amount. 5.Write the credit amount

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS A cash discount is stated as a ____________ deducted from the _________ __________, For example: 2/10, n/30 is a common term of sale which is read: ______ ________, ______ ________. It means ______ of the invoice can be deducted if it is paid within _____ ______ of the invoice date. _______ ________ means that the total invoice amount must be paid with in thirty days.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS A business wants to keep track of the purchase discounts so creates (in the chart of accounts) a general ledger account titled purchase discounts. Purchases Discounts _________ the amount journalized in the Purchases journal. An account that reduces a related account on a financial statement is called a _______ _________. On the _________ _________, Purchases Discount is deducted from the balance of its __________ account, Purchases. __________ discounts are not recorded, ______ discounts are.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS November 8. Paid cash on account to Gulf Craft Supply, $488.04, covering Purchase Invoice No. 82 for $498.00, less 2% discount, $9.96. Check No Purchase Discounts are calculated: STEP 1 Purchase Invoice x Purchases Discount = Purchases Amount Rate Discount _____________ x _______________ = ___________ STEP 2 Purchase Invoice Amount - Purchases discount = Cash Amount After Discount _________________ - _____________ = ___________

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 9-2 CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS page 245 November 8. Paid cash on account to Gulf Craft Supply, $488.04, covering Purchase Invoice No. 82 for $498.00, less 2% discount, $9.96. Check No Write the date. 2.Write the account title of the vendor. 3.Write the check number. 4.Write the debit amount. 5.Write the credit amount Write the credit amount. 65

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 9-2 CASH PAYMENTS ON ACCOUNT WITHOUT PURCHASES DISCOUNTS page 246 November 13. Paid cash on account to American Paint, $2,650.00, covering Purchase Invoice No. 77. Check No Write the date. 2.Write the vendor account title. 3.Write the check number. 4.Write the debit amount. 5.Write the credit amount

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 9-2 TERMS REVIEW cash payments journal cash discount purchases discount general amount column list price trade discount contra account page 247

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 15 LESSON 5-1 ASSIGNMENT Work Together 9-2 as a Class, pg. 247

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 16 LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9-3 Performing Additional Cash Payments Journal Operations

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 18 LESSON 9-3 PETTY CASH REPORT 2 page Write the actual amount of cash on hand Write the date and custodian name. 2.Write the fund total. 3.Summarize petty cash payments. 4.Calculate and write the total payments. 5.Calculate and write the recorded amount on hand. 7.Subtract the actual amount on hand from the recorded amount on hand and write the amount. 8.Write the total of the replenish amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 19 LESSON 9-3 REPLENISHING A PETTY CASH FUND 56 page Date 2.Account titles 3.Check number 4.Expense amounts 5.Cash short as a debit; cash over as a credit Total cash payment

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 20 LESSON 9-3 TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD page Rule a single line. 2.Write the date. 3.Write the words Carried Forward in the Account Title column. 4.Place a check mark in the Post. Ref. column. 5.Write each column total. 6.Rule double lines.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 21 LESSON 9-3 STARTING A NEW CASH PAYMENTS JOURNAL PAGE page Write the journal page number. 2.Write the date. 3.Write the words Brought Forward in the Account Title column. 4.Place a check mark in the Post. Ref. column. 5.Record the column totals. 5

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 22 LESSON 9-3 TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH page Rule a single line. 2.Write the date. 3.Write the word Totals in the Account Title column. 4.Write each column total. 5.Rule double lines. 1 5

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 23 LESSON 9-3 TERMS REVIEW cash short cash over page 253

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 24 LESSON 5-1 ASSIGNMENT Work Together 9-3 as a Class, pg. 253

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 25 LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 26 LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 27 LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 28 LESSON 5-1 ASSIGNMENT On Your Own 9-2 on Aplia practice / completion grade, pg. 247 (10 points) On Your Own 9-3 on Aplia practice / completion grade, pg. 253, (10 points) Application 9-2: Grade It Now, page 260 Application 9-3: Grade It Now, page 261 Define terms for Lessons: 9-1, 9-2, 9-3 Show me your professional reading book (25 pts.) Show me your professional reading book (25 pts.) REMINDER: The first FOUR modules in Everfi (everfi.net) must be complete before interims.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 29 LESSON 5-1 Exit Ticket DEFINE THE NINE TERMS FOR LESSON 9-2 and 9-3 PLEASE REMEMBER TO PUT THE BOOKS IN THE CABINET