CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 1-2 Journalizing and Posting Purchases and Purchases Returns
CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 1-2 June 1. Purchased video equipment on account from Western Digital Systems, $ Purchase Invoice No JOURNALIZING PURCHASES ON ACCOUNT 1.Write approval date. 4.Write invoice amount under Accounts Payable column. 3.Record invoice number. 2.Write vendor name. page
CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 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
CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 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
CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON Enter accounts to be debited. 3.Record debit memo number. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES page Write the date. 4.Draw diagonal line. 5.Write debit amount. 7.Write credit amount. 6.Enter account to be credited.
CENTURY 21 ACCOUNTING © Thomson/South-Western Purchase on account DEBIT purchases Credit Accounts Payable 6 LESSON 1-2
CENTURY 21 ACCOUNTING © Thomson/South-Western Pay on account with a discount? Debit Accounts Payable Credit BOTH CASH and PURCHASE DISCOUNT 7 LESSON 1-2
CENTURY 21 ACCOUNTING © Thomson/South-Western Receive Cash on account with a discount? Debit CASH and SALES DISCOUNT Credit Accounts Receivable 8 LESSON 1-2
CENTURY 21 ACCOUNTING © Thomson/South-Western Issue credit for damaged items? Debit SALES RETURNS/ALLOWANCES and SALES TAX PAYABLE Credit ACCOUNTS RECIEVABLE 9 LESSON 1-2
CENTURY 21 ACCOUNTING © Thomson/South-Western Someone returned an item? Debit ACCOUNTS PAYABLE Credit PURCHASE RETURNS 10 LESSON 1-2
CENTURY 21 ACCOUNTING © Thomson/South-Western 11 LESSON 1-2 To complete: 1-2 WT =WBpage7/Text OYO =WBpage8/Text17 page 17