1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning PART 2 Accounting for a Merchandising Business Organized as a Corporation

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9-1 Journalizing Purchases Using a Purchases Journal  Merchandising business  Using special journals  Purchasing merchandise  Purchases on account  Purchases journal  Purchase invoice  Totaling and ruling a purchases journal

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Merchandising Business 3 LESSON 9-1 Objectives: 55 Compare the accounting procedures for different types of business ownerships and business Cycles 56 Differentiate between a merchandising and a service business 57 Journalize purchase transactions 59 Identify special journals and their uses 63 Prepare customer invoices for a merchandising business 71 Summarize the progression from source documents to journals to ledgers to financial reports for a merchandising business 72 Describe record/organization and retention-schedule procedure for a merchandising business

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 9-1 PURCHASING MERCHANDISE page 236

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 9-1 PURCHASES ON ACCOUNT page 236

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 9-1 PURCHASES JOURNAL page 237

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 9-1 2 1.Stamp the date received and purchase invoice number. PURCHASE INVOICE 1 3 4 page 238 4.Review the vendor’s terms. 3.Initials of the person who checked the invoice. 2.Place a check mark by each amount.

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 9-1 PURCHASING MERCHANDISE ON ACCOUNT 1 2 34 page 239 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.

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 9-1 TOTALING AND RULING A PURCHASES JOURNAL 2 3 45 page 240 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.

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 9-1 TERMS REVIEW merchandise merchandising business retail merchandising business wholesale merchandising business corporation share of stock capital stock stockholder special journal cost of merchandise markup vendor purchase on account purchases journal special amount column purchase invoice terms of sale page 241