CHAPTER THIRTEEN SPECIAL JOURNALS

4Designed for recording only certain kinds of transactions 4Save time journalizing and posting transactions: éTransactions entered on a single line. éColumn totals are posted periodically. 4General Journal still needed for some transactions.

SPECIAL JOURNALS SPECIAL JOURNALTRANSACTIONS Sales JournalSales on account Only sales “on account,” not cash sales.

SPECIAL JOURNALS SPECIAL JOURNALTRANSACTIONS Sales JournalSales on account Any transaction in which cash is received. Cash Sales are recorded in this journal. Cash Receipts JournalCash receipts

SPECIAL JOURNALS SPECIAL JOURNALTRANSACTIONS Sales JournalSales on account “ON ACCOUNT” purchases of MERCHANDISE only Cash Receipts JournalCash receipts Purchases Journal Purchases on account

SPECIAL JOURNALS SPECIAL JOURNALTRANSACTIONS Sales JournalSales on account Cash Receipts JournalCash receipts Purchases Journal Purchases on account Cash Payments JournalCash payments Any transaction in which cash is paid.

SALES TRANSACTIONS April 4 Made sale no. 133C on account to Enrico Lorenzo, $1,520 plus $76 sales tax April 10 Made sale no. 134C on account to Brenda Myers, $40 plus $22 sales tax April 18 Made sale no. 105D on account to Edith Walton, $980 plus $49 sales tax April 21 Made sale no. 202B on account to Susan Chang, $620 plus $31 sales tax April 24 Made sale no. 162A on account to Heidi Schwitzer, $1,600 plus $80 sales tax Let’s review the General Journal entries for these transactions.

GENERAL JOURNAL DATEDESCRIPTIONPRDEBITCREDIT Apr. 4 Accts. Receivable/E. Lorenzo 1, Sales 1, Sales Tax Payable sale no. 133C 4 lines are used to prepare one journal entry!!

GENERAL JOURNAL DATEDESCRIPTIONPRDEBITCREDIT Apr. 4 Accts. Receivable/E. Lorenzo 1, Sales 1, Sales Tax Payable sale no. 133C 10Accts. Receivable/B. Myers Sales Sales Tax Payable sale no. 134C 22 00

GENERAL JOURNAL continued DATEDESCRIPTIONPRDEBITCREDIT Accts. Receivable/E. Walton Sales Sales Tax Payable 1, sale no. 105D Accts. Receivable/S. Chang Sales Sales Tax Payable sale no. 202B

GENERAL JOURNAL continued DATEDESCRIPTIONPRDEBITCREDIT Accts. Receivable/H. Schwitzer Sales Sales Tax Payable 1, , sale no. 162A All the entries involved the same accounts!!

SALES JOURNAL 4A column for each account involved in “Sales on account” transactions: éAccounts Receivable (Debit), Sales (Credit), Sales Tax Payable (Credit) 4Four steps for entering a transaction: éStep #1 Enter Date. éStep #2 Enter Sales number. éStep #3 Enter Customer. éStep #4 Enter Dollar amount.

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr4133C Sales Credit Enrico Lorenzo 1,596 1,52076 The whole transaction is recorded on ONE line. Account names are not entered. Page 6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Now let’s look at posting from the Sales Journal. Page 6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Step #1a Total the amount columns. 5,418 5, Page 6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Step #1b Verify that the total of the debit column equals the total of the credit columns. 5,418 5, Page 6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, ,418 5, Debits $5,418 Credits $5,418 Page 6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Step #1c Rule the columns. 5,418 5, Page 6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Let’s post the Accounts Receivable total. 5,418 5, Page 6

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. ACCOUNTS RECEIVABLE Apr. 112, Balance Step #2 Enter the date.

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. ACCOUNTS RECEIVABLE Apr. 112, Balance Step #3 Enter the amount. 5,418

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. ACCOUNTS RECEIVABLE Apr. 112, Balance Step #4 Enter the new balance. 5,418 17,418

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. ACCOUNTS RECEIVABLE Apr. 112, Balance Step #5 Enter “S” for Sales Journal and the journal page number. 5,418 17,418 S6

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Step #6 Enter the account number below the column total. 5,418 5, Page 6 (122)

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Steps #2 - #6 will be repeated for the Sales and Sales Tax Payable columns. 5,418 5, Page 6 (122)(401)(231)

SALES JOURNAL Date To Whom SoldPR Accts. Receivable Debit/Sales Credit Sale No. A company that does not charge sales tax, such as a wholesaler, will use a single column Sales Journal. Page 1

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, Each transaction must also be posted to the Accounts Receivable ledger. 5,418 5, Page 6 (122)(401)(231)

ACCOUNTS RECEIVABLE LEDGER Name: DATEITEMPRDEBITCREDIT BALANCE Enrico Lorenzo 20-- Apr. 1,5964 Address: 5240 Tousley Court, Indianapolis, IN ,596S6 4Step #1 Enter the date. 4Step #2 Enter the amount. 4Step #3 Update the balance. 4Step #4 Enter “S” (Sales Journal) and “6” (page number) in the PR column.

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, “  ” is entered to indicate the transaction has been posted to the Accounts Receivable ledger. 5,418 5, Page 6 (122)(401)(231) 

SALES JOURNAL Date To Whom SoldPR Accts. Rec. Debit Sales Tax Pay. Credit Sale No Apr133C Sales Credit Enrico Lorenzo 1,596 1, CBrenda Myers D Edith Walton1, B Susan Chang AHeidi Schwitzer 1,680 1, The other sales are posted to the Accounts Receivable ledger in the same manner. 5,418 5, Page 6 (122)(401)(231)     

CASH RECEIPTS JOURNAL 4Used to record only cash receipt transactions 4Includes separate columns for: éCash (Debit) éBank Credit Card Expense (Debit) éAccounts Receivable (Credit) éSales (Credit) éSales Tax Payable (Credit) éGeneral (Credit)

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit EXAMPLE: April 14, received cash on account from Enrico Lorenzo for sale no. 133C, $1,596.

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Step #1 Enter date. Apr

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Step #2 Enter name of account credited. Apr Enrico Lorenzo

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo This column is used for two purposes: 1.To identify the customer name for any collection on account. This column is used whenever the Accounts Receivable Credit column is used. 2.To enter the appropriate account name whenever the General Credit column is used.

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Step #3 Enter the dollar amounts. Apr Enrico Lorenzo1,596

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1,596

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers 462 Cash was also received on account on April 20th and 28th.

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1,

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Now let’s journalize cash sales for April 30th of $3,600 plus tax of $180.

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 This column is left blank for cash sales. 30

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 3,  = 3,780 Total Credits = Total Debits

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Bank credit card sales are similar to cash sales, no entry is made in the “Account Credited” column. 30

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 Bank Credit Card Sales of $2,500 were made this month. 2,500

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 Sales Tax on these sales was $125. 2,

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 The service charge on these bank credit card sales was $100. 2,

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 The cash received was $2,525 [($2,500sales + $125tax) - $100service chg]. 2, ,500

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Example: April 30, received cash for rent revenue $

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 We need to credit Rent Revenue and debit Cash. 30

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Since there is no column for Rent Revenue, we must use the “General Credit” column

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 When the “General Credit” column is used, the “Account Credited” column must identify the specific General Ledger account affected Rent Revenue

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, ,

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Borrowing money would be recorded in a similar manner Rent Revenue 30 Notes Payable 3,000

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton 1,029 On a daily basis, the amounts in the “General Credit” column are posted Rent Revenue 30 Notes Payable 3,000

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. RENT REVENUE Apr. 11, Balance “CR” for Cash Receipts Journal ,400CR7

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 General Ledger account number Rent Revenue 30 Notes Payable 3,

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Notes Payable is posted in the same manner Rent Revenue 30 Notes Payable 3,

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 At the end of the month, the columns are totaled Rent Revenue 30 Notes Payable 3, ,600 3,087

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 Next, we verify that the debit columns equal the total of the credit columns.

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 $3,600 + $3,087 + $6,100 + $305 = $13,092 Credits

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 $100 + $12,992 = $13,092 Debits DEBITS = CREDITS!!!

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 Each column total (except General) is posted at the end of the month.

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. ACCOUNTS RECEIVABLE Apr. 112, Balance “CR” for Cash Receipts Journal 5,418 17,418 S6 30CR7 3,08714,331

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 (122) Account Number indicates total was posted.

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 (122) (401) (231)(513)(101) Remaining columns are posted in the same manner.

CASH RECEIPTS JOURNAL Bank C C Exp. Debit Page 7 Cash Debit 1,596 Sales Tax Pay. Credit Sales Credit Accts. Rec. Credit General Credit 1, ,029 3, ,780 2, , ,000 3,600 3,087 6, ,992 (122) (401) (231)(513)(101)  “  ” indicates the column total is not posted.

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 Postings to the subsidiary Accounts Receivable ledger are made daily Rent Revenue 30 Notes Payable 3, ,600 3,087

ACCOUNTS RECEIVABLE LEDGER Name: DATEITEMPRDEBITCREDIT BALANCE Enrico Lorenzo 20-- Apr. 1,5964 Address: 5240 Tousley Court, Indianapolis, IN ,596S6 141,596CR7

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 “  ” indicates transaction was posted to the Accounts Receivable subsidiary ledger Rent Revenue 30 Notes Payable 3, ,600 3,087 

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 The payments by Brenda and Edith are posted in the same manner Rent Revenue 30 Notes Payable 3, ,600 3,087   

CASH RECEIPTS JOURNAL Date Account CreditedPR General Credit Page 7 Accts. Rec. Credit Apr Enrico Lorenzo1,596 20Brenda Myers Edith Walton1,029 “  ” is entered into the PR column for cash sales and bank credit card sales Rent Revenue 30 Notes Payable 3, ,600 3,087     

PURCHASES JOURNAL 4Purchases of MERCHANDISE for resale 4Only ON ACCOUNT éCash purchases would be recorded in the Cash Payments Journal. 4Single column format éPurchases Debit/Accounts Payable Credit, OR 4Three column éPurchases Debit, Freight-In Debit, Accounts Payable Credit

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. For our example, we will use a single column Purchases Journal. Page 8

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. Example: On April 4th, purchased merchandise from Compucraft, Inc. $3,300 Invoice no. 631, dated April 2, n/30. Page Apr4 631Compucraft, Inc. 3,300

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. All purchases transactions are journalized in the same manner. Page Apr4 631Compucraft, Inc. 3, DDatasoft2, EZX Corp. 8, Printpro Corp Televax, Inc.5,300

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. At the end of the month, the column is totaled, ruled, and posted to the General Ledger accounts. Page Apr4 631Compucraft, Inc. 3, DDatasoft2, EZX Corp. 8, Printpro Corp Televax, Inc.5,300 20,600

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. PURCHASES Apr. 117, Balance “P” for Purchases Journal 20,600 38,000 P8 

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. Page Apr4 631Compucraft, Inc. 3, DDatasoft2, EZX Corp. 8, Printpro Corp Televax, Inc.5,300 20,600 (501) Account Number indicates column total has been posted.

FOUR-COLUMN ACCOUNT Account: Account No. DATEITEMPRDR.CR. BALANCE DR.CR. ACCOUNTS PAYABLE Apr. 14, Balance 20,600 25,400 P8 

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. Page Apr4 631Compucraft, Inc. 3, DDatasoft2, EZX Corp. 8, Printpro Corp Televax, Inc.5,300 20,600 (501) (202) Transactions are posted to the Accounts Payable ledger on a daily basis.

ACCOUNTS PAYABLE LEDGER Name: DATEITEMPRDEBITCREDIT BALANCE Compucraft, Inc Apr. 3,3004 Address: 5240 Tousley Court, Indianapolis, IN ,300P8

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. Page Apr4 631Compucraft, Inc. 3, DDatasoft2, EZX Corp. 8, Printpro Corp Televax, Inc.5,300 20,600 (501) (202) “  ” is placed in the PR column when posting is completed. 

PURCHASES JOURNAL Date From Whom PurchasedPR Purchases Debit/ Accounts Payable Credit Invoice No. Page Apr4 631Compucraft, Inc. 3, DDatasoft2, EZX Corp. 8, Printpro Corp Televax, Inc.5,300 20,600 (501) (202) The remaining transactions are posted in the same manner.     

CASH PAYMENTS JOURNAL 4Used to record only cash payments transactions 4Every transaction in the journal will involve a credit to the Cash account. 4Columns are set up in the journal for the most commonly affected accounts in cash payments transactions.

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page 12 Example: Payment of rent, $2,400 on April 2 Check No.

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page 12 All cash payments (except those from Petty Cash) should be made by check for good internal control Apr. 2 Check No. 307

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page 12 This column is used for two purposes: 1. To identify a supplier name for any payment on account 2. To enter the appropriate account name whenever the “General Debit” column is used 20-- Apr. 2 Check No ,400Rent Expense

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page 12 Example: On April 4 $1,400 of merchandise was purchased for cash Apr. 2 Check No ,400Rent Expense 4308

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page 12 Example: On April 10 payment was made on account, $4, Apr. 2 Check No ,400Rent Expense B.B. Small

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable Example: On April 14 payment was made on a note payable, $2,000. 2,000

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800 2,000

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable Example: On April 22 owner withdrew cash for personal use, $1,600. 2, Gary L. Fishel, Drawing 1,600

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800 2,000 1,600

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable Example: On April 24 made payment on account within the discount period. 2, Gary L. Fishel, Drawing 1, EZX Corp.

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800 2,000 1,600 8, ,613

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable On a daily basis, the amounts in the “General Debit” column are posted. 2, Gary L. Fishel, Drawing 1, EZX Corp.

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable “CP” for Cash Payments journal is entered in the ledger account’s PR column, and the account number is entered in the journal’s PR column. 2, Gary L. Fishel, Drawing 1, EZX Corp

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable At the end of the month, the columns are totaled, equality of debits and credits is verified, and totals are posted to the General Ledger. 2, Gary L. Fishel, Drawing 1, EZX Corp ,000

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800 2,000 1,600 8, ,613 6,000 13,500 1, ,813 6,000  13,500  1,400 = 20,  20,813 = 20,900

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800 2,000 1,600 8, ,613 6,000 13,500 1, ,813  “  ” indicates the column should not be posted.

CASH PAYMENTS JOURNAL Page 12 Cash Credit Purch. Disc. Credit Purchases Debit Accts. Pay. Debit General Debit 2,400 1,400 4,800 2,000 1,600 8, ,613 6,000 13,500 1, ,813  Account numbers indicate the total were posted. (202)(501)(501.2)(101)

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable Transactions affecting the Accounts Payable ledger are posted daily. 2, Gary L. Fishel, Drawing 1, EZX Corp ,000

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable “  ” is entered to indicate the transaction has been posted. 2, Gary L. Fishel, Drawing 1, EZX Corp ,000  

CASH PAYMENTS JOURNAL Date Account DebitedPR General Debit Page Apr. 2 Check No ,400Rent Expense B.B. Small Notes Payable “  ” is also entered for transactions that do not require individual postings. 2, Gary L. Fishel, Drawing 1, EZX Corp ,000   