1. Journalizing Cash Payments Using a Cash Payments Journal
LESSON 9-2
Journalizing Cash Payments Using a Cash Payments Journal

2. PURCHASES JOURNAL
page 237
REVIEW
LESSON 9-1

3. PURCHASING MERCHANDISE ON ACCOUNT
page 239
November 2. Purchased merchandise on account from Crown Distributing, $2, Purchase Invoice No. 83. 2 1 3 4
REVIEW
1. Write the date.
2. Write the vendor name.
3. Write the purchase invoice number.
4. Write the amount of the invoice.
LESSON 9-1

5. CASH PAYMENTS JOURNAL
page 242
The cash payments journal is used only for cash payment transactions.
Special amount columns include:
Accounts Payable dr.
Purchases Discount cr.
Cash cr.
LESSON 9-2

6. CASH PAYMENT OF AN EXPENSE
page 243
November 2. Paid cash for advertising, $ Check No. 292.
1. Write the date.
2. Write the account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
LESSON 9-2

7. BUYING SUPPLIES FOR CASH
LESSON 9-2
4/16/2017
BUYING SUPPLIES FOR CASH
page 243
November 5. Paid cash for office supplies, $ Check No. 293.
1. Write the date.
2. Write the account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
LESSON 9-2

8. CASH PAYMENTS FOR PURCHASES
page 244
November 7. Purchased merchandise for cash, $ Check No. 301.
1. Write the date.
2. Write the account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
LESSON 9-2

9. Discounts
To encourage early payment, a vendor may allow a cash discount on the invoice amount.
A cash discount on purchases taken by a customer is a purchases discount. The customer pays less than the invoice amount.
A reduction in the invoice list price granted to a customer is a trade discount.
LESSON 9-2

10. 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. 302.
Pre-Discount
Post-Discount
1. 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.
6. Write the credit amount.
LESSON 9-2

11. CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS
page 246
November 13. Paid cash on account to American Paint, $2,650.00, covering Purchase Invoice No. 77. Check No. 303.
1. Write the date.
2. Write the vendor account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
LESSON 9-2

12. 9-2 Work Together
LESSON 9-2

13. 9-2 OYO Nov 2: Paid cash for the electric bill, $248.00. C432
Nov 6: Paid cash for office supplies, $ C433
Nov 9: Paid cash to Zebra Metals for merchandise with a list price of $3,400.00, less a 40% trade discount. C434
Nov 12: Paid cash on account to Racing Images covering Purchase Invoice No. 543 for $4,230.00, less 2% discount. C435
Paid cash on account to SPL, Renovation covering Purchase Invoice No. 182 for $2, No cash discount was offered. C436
LESSON 9-2

14. 9-2 Application Answers
Nov 1: Paid cash for telephone bill, $ C241
Nov 4: Paid cash on account to The Pro Shop $1, covering P367, less 2% discount. C242.
Nov 6: Paid cash for advertising $ C243
Nov 9: Paid cash on account to Athletic Center, $ covering P362. No cash discount was offered. C244
Nov 11: Paid cash for office supplies $ C247
LESSON 9-2

15. 9-2 Appl. Cont.
Nov 13: Paid cash to Tennis City for merchandise with list price of $1, less a 50% trade discount. C246.
Nov 18: Paid cash for store supplies, $ C247
Nov 21: Purchased merchandise fir cash from Trevor Industries $ C248
Nov 23: Purchased merchandise for cash from Paris Mfg. Co. $750,00 less a 60% trade discount. C249
Nov 25: Paid cash on account to Best Clothing $ covering P363. No cash discount was offered. C250
Nov 27: Paid cash on account to Trophy Sports $2,100 covering P373, less 2% discount. C251
LESSON 9-2

16. n/30 means the total invoice amount must be paid within 30 days.
2/10 means that 2% of the invoice amount may be deducted if paid within 10 days
n/30 means the total invoice amount must be paid within 30 days.
LESSON 9-2