BuyFindarrow_forward

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

PURCHASES JOURNAL, CASH PAYMENTS JOURNAL, AND GENERAL JOURNAL Debbie Mueller owns a small retail business called Debbie’s Doll House. The cash account has a balance of $20,000 on July 1. The following transactions occurred during July:

images

images

REQUIRED

  1. 1. Record the transactions in the purchases journal, cash payments journal, and general journal. Total and rule the purchases and cash payments journals. Prove the cash payments journal.
  2. 2. Post from the journals to the general ledger and accounts payable ledger accounts. Use general ledger account numbers as shown in the chapter.

1.

To determine

Prepare the given transactions in the purchase journal, cash payment journal, and general journal and verify the total column and rule the column

Explanation

Purchase Journal: Purchase journal records all the merchandise purchase on credit. In a single column purchase journal, debit aspect of inventory and credit aspect of accounts payable are recorded, and then posted to individual subsidiary supplier account.

Prepare the given transactions in the purchase journal:

Table (1)

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 (2)

Working note 1:

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

Purchases discounts(credit)on dated 11thJuly}=(Issued check for merchandised purchased on account Return amount ofmerchandise ×Discount rate)=($2,500$400×2%)=$2,100×2%=$42

Working note 2:

Calculate the amount of purchases discounts (credit) on dated 13th July:

Purchases discounts(credit)on dated 13thJuly}=(Issued check for merchandised purchased on account ×Discount rate)=($2,800×1%)=$28

Working note 3:

Calculate the amount of purchases discounts (credit) on dated 18th July:

Purchases discounts(credit)on dated 18thJuly}=(Issued check for merchandised purchased on account <

2.

To determine

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

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is the order entry/sales (OE/S) process?

Accounting Information Systems

Explain whether the following statement is true or false: 100 a year for 10 years is an annuity; but 5100 in Ye...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)