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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Jacobs Company had the following transactions that occurred during February of this year:

Feb. 1    Issued Ck. No. 4311, $637, to Barker Company for invoice no. 3113E, recorded previously for $650, less cash discount of $13.

2    Issued Ck. No. 4312 to Bonilla Express Company for freight charges, $48, for merchandise purchased.

4    Issued Ck. No. 4313 to Dillon Realty for monthly rent, $560.

9    Received and paid bill for advertising in The Nickel News, $84, Ck. No. 4314.

10    Issued Ck. No. 4315, $990, to Dorsey Company for invoice no. D642, recorded previously for $1,000, less 1 percent cash discount.

15    Paid wages recorded previously for first half of month, $1,678; Ck. No. 4316.

19    R. Jacobs, the owner, withdrew $900 for personal use; Ck. No. 4317.

25    Issued Ck. No. 4318 to First National Bank for payment on bank loan, $896, consisting of $800 on principal and $96 interest.

27    Issued Ck. No. 4319, $430, to Long Company for invoice no. 6317, recorded previously (no discount).

28    Voided Ck. No. 4320.

28    Paid wages recorded previously for second half of month, $1,648; Ck. No. 4321.

28    Received and paid telephone bill, $86; Ck. No. 4322, payable to Southwestern Telephone Company.

Required

  1. 1. Journalize the transactions for February in the cash payments journal. Assume the periodic inventory method is used.

1.

To determine

Journalize the transactions in cash payments journal using periodic inventory method.

Explanation

Cash payments journal: Cash payments journal refers to the journal that is used to record the all transaction which is involve the cash payments. For example, the business paid cash to employees (salary paid to employees). Cash payments journal is used to record merchandise purchases made in cash and payments of accounts payable. It also records all other cash payments to various purposes. To include all these transactions, companies use multi-column cash payments journal.

Periodic inventory system: The method or system of recording the transactions related to inventory occasionally or periodically are referred to as periodic inventory system.

Journalize the transaction in cash payment journal.

Table (1)

Working Note: 1

Calculate the purchase discount on 10th February...

2.

To determine

Show the equality of credits and debits in the cash payment journal

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