1. Chapter 16
Accounting

2. 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

3. 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.

4. 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

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

6. Recording a Transaction in a Sales Journal (Page 451)

7. 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

8. Posting a Sales Journal entry to A/R Subsidiary Ledger (Page 452)

9. 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

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

11. 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

12. 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.

13. 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.

14. Footing, Proving, Totaling and Ruling the Sales journal

15. Posting the total of the sales credit column

16. Posting the total of the Sales Tax payable

17. Posting the total of the Accounts Receivable Debit Column

18. 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.