1. JOURNALIZING A PURCHASES DISCOUNT
June 1. Paid cash on account to Champion Tennis Supply, $514.50, covering Purchase Invoice No. 331 for tennis equipment for $ less 2% discount, $ Check No. 315. 1 2 3 4 5 6
1. Write the date.
5. Record the discount amount.
2. Enter vendor name.
3. Record the check number.
6. Enter the credit amount.
4. Write the debit amount.
Lesson 1-3, page 21

2. TAKING A DISCOUNT AFTER A PURCHASE RETURN
June 1. Paid cash on account to Golf-Tee, Inc., $220.50, covering Purchase Invoice No. 332 for golf equipment for $275.00, less Debit Memorandum No. 20 for $50.00, and less 2% discount, $4.50. Check No 316.
Amount owed on invoice:
Original Purchase Invoice Amount (P332)
Purchase Invoice Amount After Return
Purchases Return (DM20) – = –
50.00 =
$225.00
$275.00
Purchases discount:
Purchase Invoice Amount After Return
Purchases
Discount
Purchases Discount Rate  =  2% =
$4.50
$225.00
Amount due after purchases discount:
Purchase Invoice Amount After Return
Total
Amount Due
Purchases Discount – = –
$4.50
$220.50 =
$225.00
Lesson 1-3, page 22

3. RECORDING ENTRIES IN A CASH PAYMENTS JOURNAL
June 1. Paid cash for office supplies, $ Check No. 317. 1 2 3 4 5
Supplies—Office
136.00
1. Write the date.
2. Enter the account title.
3. Record the check number.
Cash
136.00
4. Write the debit amount.
5. Enter the credit amount.
Lesson 1-3, page 23

4. CASH PAYMENT TO REPLENISH PETTY CASH
June 30. Paid cash to replenish the petty cash fund, $402.00: office supplies, $164.00; store supplies, $136.00; advertising, $56.00; miscellaneous expense, $ Check No. 350. 4 2 5 3 1
1. Write the date.
4. Write the debit amounts.
2. Enter the account titles.
5. Enter the credit amount.
3. Record check number.
Lesson 1-3, page 24

5. RECONCILING A BANK STATMENT
20,525.23 4
Date: June 30, 20--
(1) Checkbook Balance $ __________
Bank Charges
Description Amount
Service Charge
(2) Deduct Total Bank Charges $ __________
(3) Adj. Checkbook Balance $ __________
(4) Bank Balance $ __________
Outstanding Deposits
Date Amount
(5) Add Total Outstanding Deposits $ __________
(6) Total $ __________
Outstanding Checks
Check No Amount
(7) Deduct Total Outstanding Checks $ __________
(8) Adjusted Bank Balance $ __________
33,231.55 1
6/ ,828.52
12,828.52 5
352.80
12.80
Credit Card Fee 2
33,353.75 6
475.00 7
32,878.75 3
32,878.75 8
1. Enter checkbook balance.
4. Enter bank balance from statement.
2. Enter and add bank charges.
5. Enter and add outstanding deposits.
3. Deduct bank charges to obtain checkbook balance.
6. Add outstanding deposits to balance.
7. Deduct total outstanding checks.
8. Verify adjusted checkbook balance and adjusted bank balance are the same.
Lesson 1-3, page 25

6. JOURNALIZING BANK CHARGES
Miscellaneous Expense
12.80
June 30. Received bank statement showing bank service charge, $ Memorandum No 18.
Cash
12.80
Credit Card Fee Expense
340.00
June 30. Recorded credit card fee expense for June, $ Memorandum No. 19.
Cash
340.00
Lesson 1-3, page 26

7. TERMS REVIEW cash discount purchases discount petty cash
bank statement
Lesson 1-3, page 27