1. Mr. Belolan

2. Journalize and Post transactions to the Cash Payments Journal Total, prove and rule the Cash Payments Journal Prepare a schedule of Accounts Payable

3. Special Journals 1.Sales 2.Cash Receipts 3.Purchases 4.Cash Payments

4. Less clutter Organization –Money In –Money Out

5. Purchased by business to protect against fire, theft or flood Amount paid is called a premium Paid in advance An asset, debit balance

6. Examples? –Rent –Utilities –Advertising –Salaries How can we increase profits based on our expenses? Recorded in cash payments journal

7. Pay for invoices received FOB destination -- supplier pays shipping cost FOB shipping point -- buyer pays shipping cost

8. Why should we use the 4 special journals? Why would a business purchase and offer purchases on account? Problem 10-1, 10-2 –Text page 245 –Workbook page 213, 215 & 217