1. Accounting Principles, Ninth Edition
Chapter 7
Accounting Information Systems
Accounting Principles, Ninth Edition

2. Special Journals Purchases Journal
Illustration 7-13
Purchases Journal
Daily postings are made from the purchases journal to the accounts payable subsidiary ledger.
Proving the equality
See illustration 7-14

3. Special Journals Purchases Journal
Illustration 7-13
Purchases Journal
At the end of the accounting period, the company posts totals to the general ledger.
SO 4 Indicate how companies post a multi-column journal.

4. Review Question Special Journals
All of the following are advantages of using subsidiary ledgers except they:
show transactions affecting one customer or one creditor in a single account.
free the general ledger of excessive details.
eliminate errors in individual accounts.
make possible a division of labor.

5. Special Journals Cash Payments Journal
Illustration 7-16
See
the
Example
page
319
In a cash payments (cash disbursements) journal, companies record all disbursements of cash.
The procedures for posting the cash payments journal are similar to those for other journals.
See illustration 7-17 page 319

6. Review Question Special Journals
Credit purchases of equipment or supplies other than merchandise are recorded in the:
cash payments journal.
cash receipts journal.
general journal.
purchases journal.
SO 4 Indicate how companies post a multi-column journal.

7. Review Question Special Journals
Cash payments of merchandise are recorded in the:
cash payments journal.
cash receipts journal.
general journal.
purchases journal.
SO 4 Indicate how companies post a multi-column journal.

8. Special Journals Effects of Special Journals on the General Journal
Special journals substantially reduce the number of entries that companies make in the general journal.
Only transactions that cannot be entered in a special journal are recorded in the general journal.
Also, correcting, adjusting, and closing entries are made in the general journal.
SO 4 Indicate how companies post a multi-column journal.

9. DO It
See page 321
DO IT

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