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CHAPTER THIRTEEN

CHAPTER THIRTEEN. SPECIAL JOURNALS. SPECIAL JOURNALS. Designed for recording only certain kinds of transactions Save time journalizing and posting transactions: Transactions entered on a single line Column totals are posted periodically General Journal still needed for some transactions.

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CHAPTER THIRTEEN

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  1. CHAPTER THIRTEEN SPECIAL JOURNALS

  2. SPECIAL JOURNALS • Designed for recording only certain kinds of transactions • Save time journalizing and posting transactions: • Transactions entered on a single line • Column totals are posted periodically • General Journal still needed for some transactions

  3. SPECIAL JOURNALS SPECIAL JOURNAL TRANSACTIONS Sales Journal Sales on account Only sales “on account,” not cash sales.

  4. SPECIAL JOURNALS SPECIAL JOURNAL TRANSACTIONS Sales Journal Sales on account Cash Receipts Journal Cash receipts Any transaction in which cash is received. Cash Sales are recorded in this journal.

  5. SPECIAL JOURNALS SPECIAL JOURNAL TRANSACTIONS Sales Journal Sales on account Cash Receipts Journal Cash receipts Purchases on account Purchases Journal “ON ACCOUNT” purchases of MERCHANDISE only

  6. SPECIAL JOURNALS SPECIAL JOURNAL TRANSACTIONS Sales Journal Sales on account Cash Receipts Journal Cash receipts Purchases on account Purchases Journal Cash Payments Journal Cash payments Any transaction in which cash is paid.

  7. SALES TRANSACTIONS Let’s review the General Journal entries for these transactions. • April 4 Made sale no. 133C on account to Enrico Lorenzo, $1,520 plus $76 sales tax • April 10 Made sale no. 134C on account to Brenda Myers, $40 plus $22 sales tax • April 18 Made sale no. 105D on account to Edith Walton, $980 plus $49 sales tax • April 21 Made sale no. 202B on account to Susan Chang, $620 plus $31 sales tax • April 24 Made sale no. 162A on account to Heidi Schwitzer, $1,600 plus $80 sales tax

  8. GENERAL JOURNAL DATE DESCRIPTION DEBIT PR CREDIT Apr. 4 1,596 00 1 Accts. Receivable/E. Lorenzo 2 1,520 00 Sales 3 76 00 Sales Tax Payable 4 sale no. 133C 5 4 lines are used to prepare one journal entry!! 6 7 8 9 10 11

  9. GENERAL JOURNAL DATE DESCRIPTION DEBIT PR CREDIT Apr. 4 1,596 00 1 Accts. Receivable/E. Lorenzo 2 1,520 00 Sales 3 76 00 Sales Tax Payable 4 sale no. 133C 5 6 10 Accts. Receivable/B. Myers 462 00 7 440 00 Sales 8 22 00 Sales Tax Payable 9 sale no. 134C 10 11

  10. GENERAL JOURNAL continued DATE DESCRIPTION DEBIT PR CREDIT 18 1,029 00 12 Accts. Receivable/E. Walton 13 980 00 Sales 14 Sales Tax Payable 49 00 15 sale no. 105D 16 17 21 Accts. Receivable/S. Chang 651 00 18 Sales 620 00 19 31 00 Sales Tax Payable 20 sale no. 202B 21 22

  11. GENERAL JOURNAL continued DATE DESCRIPTION DEBIT PR CREDIT 24 1,680 00 23 Accts. Receivable/H. Schwitzer All the entries involved the same accounts!! 24 1,600 00 Sales 25 Sales Tax Payable 80 00 26 sale no. 162A 27 28 29 30 31 32 33

  12. SALES JOURNAL • A column for each account involved in “Sales on account” transactions: • Accounts Receivable (Debit), Sales (Credit), Sales Tax Payable (Credit) • Four steps for entering a transaction: • Step #1 Enter Date • Step #2 Enter Sales number • Step #3 Enter Customer • Step #4 Enter Dollar amount

  13. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 3 The whole transaction is recorded on ONE line. Account names are not entered. 4 5 6 7 8 9 10 11

  14. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 7 Now let’s look at posting from the Sales Journal. 8 9 10 11

  15. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 Step #1a Total the amount columns. 8 9 10 11

  16. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 Step #1b Verify that the total of the debit column equals the total of the credit columns. 8 9 10 11

  17. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 Debits $5,418 Credits $5,418 8 9 10 11

  18. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 8 Step #1c Rule the columns. 9 10 11

  19. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 8 Let’s post the Accounts Receivable total. 9 10 11

  20. FOUR-COLUMN ACCOUNT 122 ACCOUNTS RECEIVABLE Account: Account No. BALANCE DATE ITEM PR DR. CR. DR. CR. 20-- 1 Balance 12,000 Apr. 30 Step #2 Enter the date.

  21. FOUR-COLUMN ACCOUNT 122 ACCOUNTS RECEIVABLE Account: Account No. BALANCE DATE ITEM PR DR. CR. DR. CR. 20-- 1 Balance 12,000 Apr. 5,418 30 Step #3 Enter the amount.

  22. FOUR-COLUMN ACCOUNT 122 ACCOUNTS RECEIVABLE Account: Account No. BALANCE DATE ITEM PR DR. CR. DR. CR. 20-- 1 Balance 12,000 Apr. 5,418 30 17,418 Step #4 Enter the new balance.

  23. FOUR-COLUMN ACCOUNT 122 ACCOUNTS RECEIVABLE Account: Account No. BALANCE DATE ITEM PR DR. CR. DR. CR. 20-- 1 Balance 12,000 Apr. S6 5,418 30 17,418 Step #5 Enter “S” for Sales Journal and the journal page number.

  24. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 (122) 8 Step #6 Enter the account number below the column total. 9 10 11

  25. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 (122) (401) (231) 8 Steps #2 - #6 will be repeated for the Sales and Sales Tax Payable columns. 9 10 11

  26. Page 1 SALES JOURNAL Accts. Receivable Debit/Sales Credit Sale No. To Whom Sold PR Date 1 2 3 4 A company that does not charge sales tax, such as a wholesaler, will use a single column Sales Journal. 5 6 7 8 9 10 11

  27. Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 (122) (401) (231) 8 Each transaction must also be posted to the Accounts Receivable ledger. 9 10 11

  28. ACCOUNTS RECEIVABLE LEDGER Enrico Lorenzo Name: Address: 5240 Tousley Court, Indianapolis, IN 46224-5678 BALANCE DATE ITEM PR DEBIT CREDIT 20-- 4 S6 1,596 1,596 Apr. • Step #1 Enter the date. • Step #2 Enter the amount. • Step #3 Update the balance. • Step #4 Enter “S” (Sales Journal) and “6” (page number) in the PR column.

  29. ( / ) Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 (122) (401) (231) “ /” is entered to indicate the transaction has been posted to the Accounts Receivable ledger. 8 9 10 11

  30. ( / ) ( / ) ( / ) ( / ) ( / ) Page 6 SALES JOURNAL Sales Tax Pay. Credit Sales Credit Accts. Rec. Debit Sale No. To Whom Sold PR Date 20-- 1 1,520 76 Enrico Lorenzo Apr 4 133C 1,596 2 10 134C Brenda Myers 462 440 22 3 105D 18 Edith Walton 1,029 980 49 4 21 202B 620 Susan Chang 651 31 5 24 1,680 80 162A Heidi Schwitzer 1,600 6 5,418 258 5,160 7 (122) (401) (231) The other sales are posted to the Accounts Receivable ledger in the same manner. 8 9 10 11

  31. CASH RECEIPTS JOURNAL • Used to record only cash receipt transactions • Includes separate columns for: • Cash (Debit) • Bank Credit Card Expense (Debit) • Accounts Receivable (Credit) • Sales (Credit) • Sales Tax Payable (Credit) • General (Credit)

  32. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 1 2 3 EXAMPLE: April 14, received cash on account from Enrico Lorenzo for sale no. 133C, $1,596. 4 5 6 7 8 9 10 11

  33. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Apr 14 2 3 Step #1 Enter date. 4 5 6 7 8 9 10 11

  34. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo Apr 14 2 3 Step #2 Enter name of account credited. 4 5 6 7 8 9 10 11

  35. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo Apr 14 2 3 This column is used for two purposes: 1. To identify the customer name for any collection on account. This column is used whenever the Accounts Receivable Credit column is used. 2. To enter the appropriate account name whenever the General Credit column is used. 4 5 6 7 8 9 10 11

  36. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 3 Step #3 Enter the dollar amount. 4 5 6 7 8 9 10 11

  37. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 3 4 5 6 7 8 9 10 11

  38. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 20 Brenda Myers 462 3 4 5 Cash was also received on account on April 20th and 28th. 6 7 8 9 10 11

  39. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 4 5 6 7 8 9 10 11

  40. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 20 Brenda Myers 462 3 28 Edith Walton 1,029 4 5 6 7 8 9 10 11

  41. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 1,029 1,029 4 5 6 7 8 9 10 11

  42. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 20 Brenda Myers 462 3 28 Edith Walton 1,029 4 5 Now let’s journalize cash sales for April 30th of $3,600 plus tax of $180. 6 7 8 9 10 11

  43. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 20 Brenda Myers 462 3 28 Edith Walton 1,029 4 30 5 This column is left blank for cash sales. 6 7 8 9 10 11

  44. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 1,029 1,029 4 3,600 180 3,780 5 6 + = 3,600 180 3,780 7 Total Credits = Total Debits 8 9 10 11

  45. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 20 Brenda Myers 462 3 28 Edith Walton 1,029 4 30 5 30 6 7 Bank credit card sales are similar to cash sales, no entry is made in the “Account Credited” column. 8 9 10 11

  46. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 1,029 1,029 4 3,600 180 3,780 5 2,500 6 Bank Credit Card Sales of $2,500 were made this month. 7 8 9 10 11

  47. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 1,029 1,029 4 3,600 180 3,780 5 125 2,500 6 Sales Tax on these sales was $125. 7 8 9 10 11

  48. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 1,029 1,029 4 3,600 180 3,780 5 125 100 2,500 6 The service charge on these bank credit card sales was $100. 7 8 9 10 11

  49. Page 7 CASH RECEIPTS JOURNAL Sales Tax Pay. Credit Cash Debit Accts. Rec. Credit Sales Credit General Credit Bank C C Exp. Debit 1 1,596 1,596 2 462 462 3 1,029 1,029 4 3,600 180 3,780 5 125 100 2,525 2,500 6 The cash received was $2,525 [($2,500sales + $125tax) - $100service chg]. 7 8 9 10 11

  50. Page 7 CASH RECEIPTS JOURNAL Accts. Rec. Credit General Credit Account Credited PR Date 20-- 1 Enrico Lorenzo 1,596 Apr 14 2 20 Brenda Myers 462 3 28 Edith Walton 1,029 4 30 5 30 6 Example: April 30, received cash for rent revenue $600. 7 8 9 10 11

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