1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-2 Journalizing and Posting Purchases and Purchases Returns

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 1-2 June 1. Purchased video equipment on account from Western Digital Systems, $845.00. Purchase Invoice No. 336. JOURNALIZING PURCHASES ON ACCOUNT 1.Write approval date. 4.Write invoice amount. 3.Record invoice number. 2.Write vendor name. page 13 2 2 3 3 4 44 1 1

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 1-2 1.Write the date. 5.Write vendor number. 4.Calculate new account balance. 3.Record the credit amount. 2.Write journal page number. POSTING FROM A PURCHASES JOURNAL page 14 4 5 3 1 2

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 1-2 4.Calculate new account balance. 3.Write column total. 2.Write journal page number. POSTING THE TOTALS OF A PURCHASES JOURNAL page 15 1.Write the date. 5.Write account number. 3 4 1 2 5

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 1-2 2.Enter accounts to be debited. 3.Record debit memo number. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES page 16 6 1 1 2 2 3 3 4 75 1.Write the date. 4.Draw diagonal line. 5.Write debit amount. 7.Write credit amount. 6.Enter account to be credited.

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 1-2 TERMS REVIEW departmental accounting system merchandising business posting debit memorandum contra account page 17

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 1-2 Audit Your Understanding 1.When Zytech’s video department purchases merchandise on account, what general ledger accounts are affected, and how? SLIDE 7 ANSWER Purchases-Video is debited; Accounts Payable is credited. Lesson 1-1 page 11

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 1-2 Audit Your Understanding 2.What general ledger accounts are affected, and how, by a return of video equipment? SLIDE 8 ANSWER Accounts Payable is debited; Purchases Returns and Allowances-Video is credited. Lesson 1-1 page 11