1. Please do not forget News articles are due by the end of this week…… News articles are due by the end of this week…… Must have 6 of them, not from the same day….. Must have 6 of them, not from the same day….. Short summary about each Short summary about each DUE BY THURSDAY!!!!!!!! DUE BY THURSDAY!!!!!!!!

2. Chapter 10 Journalizing Payments Using Special Journals

3. Moving from sole proprietorship to a Partnership We know that if there is one owner we can do just about anything with the money and expenses. We know that if there is one owner we can do just about anything with the money and expenses. However when there is more than one owner many things change. However when there is more than one owner many things change.

4. Different types of businesses When we were working with a sole proprietorship we were working in a service business. When we were working with a sole proprietorship we were working in a service business. Now that the company is a partnership we will be working in a merchandising business. Now that the company is a partnership we will be working in a merchandising business.

5. Special Journals Now that our merchandising business does a lot more transactions. We use journals to record just that type of transaction. Now that our merchandising business does a lot more transactions. We use journals to record just that type of transaction.

6. Special Journals Purchases Journal – all purchases of merchandise on account. Purchases Journal – all purchases of merchandise on account. Merchandise is any item we buy to sell to our customers. Merchandise is any item we buy to sell to our customers. Cash payments journal – for all cash payments Cash payments journal – for all cash payments Anytime we write a check for something. Anytime we write a check for something.

7. Special Journals cont’d Sales Journal – for all sales of merchandise on account Sales Journal – for all sales of merchandise on account Anytime we sell something to someone on credit. Anytime we sell something to someone on credit. Cash receipts journal – for anytime we receive money. Cash receipts journal – for anytime we receive money. General Journal – for all other transactions General Journal – for all other transactions

8. Terms you need to know. Cost of merchandise Cost of merchandise The price a business pays for goods it purchases to sell. The price a business pays for goods it purchases to sell. Markup Markup The amount added to establish the selling price from what the business paid for it. The amount added to establish the selling price from what the business paid for it. Vendor Vendor The person we buy the merchandise from. The person we buy the merchandise from.

9. Purchases Journal DateAccount CreditedPurch No.Post Ref Purchases Dr. Accts Pay Cr. Special Amount Column

10. Things you need to know about purchases When you buy something on account, you receive a purchase invoice When you buy something on account, you receive a purchase invoice Terms of sale Terms of sale 2/10 N 30 2/10 N 30 2% discount if paid for in full within the first 10 days 2% discount if paid for in full within the first 10 days N 30 or Balance is due at the end of the month N 30 or Balance is due at the end of the month New Account- Purchases – Asset Account New Account- Purchases – Asset Account Used anytime we buy goods to sell to someone else. (Purchase ) Used anytime we buy goods to sell to someone else. (Purchase )

11. November 2. Purchased merchandise on account from Crown Ltd. $2,039.00. Purchases Order No. 83 PurchasesA/P – Crown Ltd 2039

12. November 2. Purchased merchandise on account from Crown Ltd. $2,039.00. Purchases Order No. 83 Purchases Journal DateAccount CreditedPurch No.Post Ref Purchases Dr. Accts Pay Cr. Nov2Crown Ltd.83 2039

13. Cash Payments Journal Section 2

14. Cash Payments Journal DateAccount TitleCK NOPost Ref General Accounts Pay DebitCash Credit DebitCredit General Amount Columns Special Amount Columns

15. Nov. 1 Purchased merchandise for Cash, $575. Check No. 290 Cash Payments Journal DateAccount Title CK NO Post Ref General Account Pay Debit Cash Credit DebitCredit Nov1Purchases290 575

16. Nov. 7 Paid cash on account to Pacific Imports, $1050. covering Purchase Invoice No. 81 Check No. 294 Cash Payments Journal DateAccount Title CK NO Post Ref General Account s Pay Debit Cash Credit DebitCredit Nov7Pacific Imports294 1050

17. Nov. 9 Paid cash for advertising $150 Check No. 296 Cash Payments Journal DateAccount Title CK N Post Ref General Accounts Pay DebitCash Credit DebitCredit Nov9Advertising Expense296 150

18. Section 3

19. Nov 9, Paid cash to replenish the petty cash fund $205, office supplies $35.00, store supplies, $47.00, advertising $92.00 miscellaneous $31.00 Cash Payments Journal DateAccount Title CK N OPost Ref General Account s Pay Debit Cash Credi t DebitCredit Nov9Supplies - off297 35 205 Supplies - store 47 Advert Exp 92 Miscellaneous Exp 31 Cash Payments Journal DateAccount TitleCK NOPost Ref General Accounts Pay DebitCash Credit DebitCredit

20. November 10. Michelle Wu, partner, withdrew cash for personal use, $1,200. Check No. 298 Cash Payments Journal DateAccount TitleCK NOPost Ref General Accounts Pay DebitCash Credit DebitCredit Cash Payments Journal DateAccount Title CK NOPost Ref General Account s Pay Debit Cash Credit DebitCredit Nov10Michelle Wu, Draw298 1200

21. What do we do when we run out of room in our journal? 1. We total all of the columns Cash Payments Journal DateAccount Title CK NO Post Ref General Accoun ts Pay Debit Cash Credit DebitCredit Nov10 Michelle Wu, Draw298 1200 Nov.20Carried Forward 13281.8695.381224024826.42 2. Then we double underline all of the columns once debit = credit.

22. We then take the totals and place them at the top Of the next page…… Cash Payments Journal DateAccount Title CK NO Post Ref General Account s Pay Debit Cash Credit DebitCredit Nov.20 Brought Forward 13281.8695.381224024826.42

23. Section 4 Journalizing other transactions using General Journal General JournalPage 4 Date Account TitleDoc NoPost RefDebitCredit Nov6Supplies - StoreM52 210 Accts. Pay/ Foxfire Supply 210 November 6. Bought store supplies on account from Foxfire Supply, $210.00 Memorandum No. 52.

24. November 12. Karl Koehn, partner, withdrew merchandise for personal use, $300.00 Memorandum 53. General JournalPage 4 Date Account TitleDoc NoPost RefDebitCredit Nov12Karl Koehn, DrawingM53 300 Purchases 300

25. Problems 10-1,2,3,4,5 10-1,2,3,4,5 We will also do problem 10-5 on the computer (maybe next class) We will also do problem 10-5 on the computer (maybe next class)