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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

CASH PAYMENTS JOURNAL Kay Zembrowski operates a retail variety store. The books include a cash payments journal and an accounts payable ledger. All cash payments (except petty cash) are entered in the cash payments journal. Selected account balances on May 1 are as follows:

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The following transactions are related to cash payments for the month of May:

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REQUIRED

  1. 1. Enter the transactions in a cash payments journal. Total, rule, and prove the cash payments journal.
  2. 2. Post from the cash payments journal to the general ledger and accounts payable ledger. Use general ledger account numbers as shown in the chapter.

1.

To determine

Prepare the given transactions in a cash payments journal and total the each column of cash payments journal.

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.

Prepare the given transactions in a cash payments journal and total the each column of cash payments journal:

Table (1)

Working note 1:

Calculate the amount of purchases discounts (credit) on dated 4th May:

Purchases discounts(credit)on dated 4thMay}=(Amount paid for merchandised purchased on account×Discount rate)=($4,200×3%)=$126

Working note 2:

Calculate the amount of purchases discounts (credit) on dated 11th May:

Purchases discounts(credit)on dated 11thMay}=(Check issued for merchandised purchased on account×Discount rate)=($4,600×

2.

To determine

Post the cash payment journal to the general ledger and accounts payable ledger.

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