1. LESSON 9-1 Journalizing Purchases Using a Purchases Journal
4/17/2017
LESSON 9-1
Journalizing Purchases Using a Purchases Journal

2. Merchandising Business
Chapters 9 and beyond will now deal with merchandising businesses.
A merchandising business purchases goods to sell
Merchandise is the goods that a business purchases to sell
Types of merchandising business are:
Retail business (sells directly to customers who consume the merchandise)
Wholesale business (sells retail directly to other businesses)
LESSON 9-1

3. Proprietorship vs. Corporation
A proprietorship is a business owned by just one owner
A corporation is owned by many persons
A unit of ownership in a corporation is a share of stock
An owner of one or more shares of a corporation is a stockholder.
LESSON 9-1

4. Special Journal
A business who has a limited amount of transactions (small business) can record all transactions in one general journal
A business who has multiple transactions may choose to use a separate journal to record each type of transaction called a special journal
Examples include
Purchases journal
Cash payments journal
Sales journal
Cash receipts journal
General Journal
LESSON 9-1

5. Purchasing Merchandise
The price a business pays for goods it purchases is called the cost of merchandise
In order to make a profit, a business must charge customers more money than it cost to purchase the merchandise, this is called a markup price
Revenue includes the cost of merchandise and the markup price.
LESSON 9-1

6. LESSON 3-1 9-1: Journalizing Purchases Using a Purchases Journal
4/17/2017
9-1: Journalizing Purchases Using a Purchases Journal
Mr. Stasa – WE City Schools
GREEN

7. PURCHASES JOURNAL
page 237
LESSON 9-1

8. PURCHASING MERCHANDISE
page 236
COST OF MERCHANDISE
LESSON 9-1

9. PURCHASES ON ACCOUNT
page 236
LIABILITY
LESSON 9-1

10. PURCHASING MERCHANDISE ON ACCOUNT
page 239
November 2. Purchased merchandise on account from Crown Distributing, $2, Purchase Invoice No. 83. 2 1 3 4
1. Write the date.
2. Write the vendor name.
3. Write the purchase invoice number.
4. Write the amount of the invoice.
LESSON 9-1

11. TOTALING AND RULING A PURCHASES JOURNAL
page 240 1 4 5 3 2 6
1. Rule a single line across the amount column.
4. Add the amount column.
5. Write the total.
2. Write the date.
6. Rule double lines across the amount column.
3. Write the word Total.
LESSON 9-1

12. 9-1 Work Together (Page 241)
LESSON 9-1