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Learning Targets Chapter 9  I will be responsible for knowing and understanding the following concepts:  Accounting Terms Related to the purchases and.

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Presentation on theme: "Learning Targets Chapter 9  I will be responsible for knowing and understanding the following concepts:  Accounting Terms Related to the purchases and."— Presentation transcript:

1 Learning Targets Chapter 9  I will be responsible for knowing and understanding the following concepts:  Accounting Terms Related to the purchases and cash payments journals  Accounting Concepts and Practices related to the purchases and cash payments journals  Journalize Purchases of Merchandise using a purchases journal  Journalize Cash Payments and Cash Discounts using a cash payments journal  Prepare a petty cash report and journalize the reimbursement  Total, prove, and rule a cash payments journal  Journalize purchases returns, and allowances.  I will be able to listen to my instructor and take notes, be an active participant as needed.

2 Learning Targets 9-1  I will be responsible for knowing and understanding the following concepts:  Journalizing Purchases and Using a Purchases Journal  Merchandising Businesses  Corporations  Special Journals  I will be able to listen to my instructor and take notes, be an active participant as needed.  I will complete 9-1 Workbook activities as assigned

3 TechKnow Consulting  Merchandising Business  Retail vs Wholesale What are some merchandising and services businesses in the area?  Corporation  Share of Stock, Capital Stock, Stockholder Why might a business form a corporation? LESSON 9-1 3

4 4 Used to record similar types of transactions. If a transaction cannot be recorded in a special journal, the company records it in the general journal. Expanding the Ledger-Special Journals

5 PURCHASING MERCHANDISE Cost of Merchandise MarkupVendor

6 Purchases Account -Temporary account - reduces capital - has a normal debit balance PURCHASES ON ACCOUNT

7 PURCHASES JOURNAL: A special journal used to record ONLY Purchases of merchandise ON ACCOUNT -A purchase on account transaction is recorded on only one line of the purchases journal -A purchase made for cash IS NOT recorded in this journal -Every purchase on account will have a purchase invoice issued from the vendor.

8 PURCHASE INVOICE 2 1.Stamp the date received and purchase invoice number. 1 3 4 4.Review the vendor’s terms. 3.Initials of the person who checked the invoice. 2.Place a check mark by each amount.

9 PURCHASING MERCHANDISE ON ACCOUNT 1 2 34 November 2. Purchased merchandise on account from Crown Distributing, $2,039.00. Purchase Invoice No. 83. 1.Write the date. 2.Write the vendor name. 3.Write the purchase invoice number. 4.Write the amount of the invoice.

10 TOTALING AND RULING A PURCHASES JOURNAL 2 3 45 1 6 1.Rule a single line across the amount column. 2.Write the date. 3.Write the word Total. 4.Add the amount column. 5.Write the total. 6.Rule double lines across the amount column.

11 Classwork/Homework  Work Together 9-1 pg. 241, WB pg. 193  On Your own 9-1 pg. 241 WB pg. 194 LESSON 9-1 11

12 Learning Targets 9-2  I will be responsible for knowing and understanding the following concepts:  Accounting terms related to cash payments for a merchandising business  Accounting practices as they relate to cash payments for a merchandising business  Accounting practices as they relate to the Cash Payments Journal  I will be able to listen to my instructor and take notes, be an active participant as needed.  I will complete 9-2 Workbook activities as assigned

13 13 Used to record similar types of transactions. If a transaction cannot be recorded in a special journal, the company records it in the general journal. Expanding the Ledger-Special Journals

14 Cash Payments Journal  Cash discount – a deduction that a vendor allows on the invoice amount to encourage prompt payment  Purchases discount – cash discount on purchases taken by a customer. The customer pays less than the invoice amount previously recorded in the purchases account. 14

15 Cash Payment of an Expense 15 November 2. Paid cash for advertising, $150.00. 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. 12345

16 Cash Payment for Supplies 16 November 5. Paid cash for office supplies, $94.00. 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. 12345

17 Cash Payments for Purchases 17 November 7. Purchased merchandise for cash, $600.00. Check No. 301. 1.Write the date. 2.Write the account title. 3.Write the check number. 4.Write the debit amount. 1 2 345

18 Cash Payments on Account with Purchases Discount 18 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. 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. 12 3 4 65

19 Cash Payments on Account Without purchases Discounts 19 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. 12 3 45

20 Classwork/Homework  Work Together 9-2 pg. 247, WB pg. 195  On your Own 9-2 pg. 247 WB pg. 196 20

21 Learning Targets 9-3  I will be responsible for knowing and understanding the following concepts:  Accounting terms related to cash payments for a merchandising business  Accounting practices as they relate to cash payments for a merchandising business  Accounting practices as they relate to the petty cash / petty cash reports  I will be able to listen to my instructor and take notes, be an active participant as needed.  I will complete 9-3 Workbook activities as assigned

22 Petty Cash Report 22 2 6.Write the actual amount of cash on hand. 8 4 1 3 6 5 7 1.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.

23 Replenishing a Petty Cash Fund 23 56 1.Date 2.Account titles 3.Check number 4.Expense amounts 5.Cash short as a debit; cash over as a credit 1 3 4 6.Total cash payment

24 TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD 24 23 4 5 1 6 1.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.

25 Starting a New Cash payments Journal Page 25 1 234 1.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

26 TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH 26 2 3 4 1.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

27 Classwork / Homework  WT 9-3 TB: 253 WB: 197  OYO 9-3 TB: 253 WB: 198 27

28 Learning Targets 9-4  I will be responsible for knowing and understanding the following concepts:  Accounting terms related to purchases returns and allowances  Accounting practices as they relate to purchases returns and allowances for a merchandising business  Journalize purchases returns and allowances and other transactions using a general journal.  I will be able to listen to my instructor and take notes, be an active participant as needed.  I will complete 9-4 Workbook activities as assigned

29 LESSON 9-1 29 Used to record similar types of transactions. If a transaction cannot be recorded in a special journal, the company records it in the general journal. Expanding the Ledger-Special Journals

30 Journalizing Other Transactions Using a General Journal  -Buying office supplies on account for use by employees  -Purchases returns and Allowances - Purchases return – returned merchandise resulting in a decrease in the customer’s accounts payable - Purchases allowance – credit allowed for part of the purchase price resulting in a decrease in A/P (damaged or incorrect merchandise) - Contra account to Purchases – has a normal credit balance 30

31 Buying Supplies on Account LESSON 9-1 31 1 2 3 4 5 6 November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memorandum No. 52. 1.Write the date.5.Write the account title and vendor name. 2.Write the account title. 6.Place a diagonal line in the Post. Ref. column. 3.Write the memorandum number. 7.Write the credit amount. 4.Write the debit amount. 7

32 Debit Memorandum LESSON 9-1 32

33 Journalizing Purchases Returns and Allowances LESSON 9-1 33 4. Write debit memorandum number. November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase Invoice No. 80. Debit Memorandum No. 78. 1 2 3 4 5 6 1.Write the date. 5. Write the amount. 2.Write the account title and vendor name. 6. Write Purchases Returns and Allow. 3.Place a diagonal line in the Post. Ref. column. 7. Write the amount. 7

34 Homework / Classwork  WT: 9-4 TB pg 258 / WB pg 199  OYO: 9-4 TB pg 258 / WB pg 199 LESSON 9-1 34


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