CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 10-2

Journalizing Cash Receipts Using a Cash Receipts Journal

Slides available on class website

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Using Special Journals

A business with a limited number of daily transactions may record all entries in one general journal.

However, a business with many different types of daily transactions may chose to use a separate journal for each kind of transaction.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

3

LESSON 9-1

Accounting for a Merchandising Business Organized as a Corporation

A merchandising business purchases goods to sell. Think of Target or a retail store.

The purchase of goods to sell can be on account and for cash.

The sale of goods can be on account and for cash.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

4

LESSON 10-2

SPECIAL JOURNALS

There are 4 types of Special Journals

1. Purchase Journal – for all purchases of merchandise on account

2. Cash Payments Journal – for all cash payments

3. Sales Journal – for all sales of merchandise on account

4. Cash Receipts Journal – for all cash receipts

General Journal – for all other transactions

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

5

LESSON 9-1

PURCHASES JOURNAL page 237

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

6

LESSON 9-2

THE CASH PAYMENTS JOURNAL page 242

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

7

LESSON 10-1

SALES JOURNAL page 272

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

8

LESSON 10-2

CASH RECEIPTS JOURNAL page 278

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

9

LESSON 10-2

TRANSACTIONS FOR CASH RECEIPTS JOURNAL

Cash and Credit Card Sales (do not confuse credit card sale with sales on account).

Receipt of cash from sales made on account.

Just like the Sales Journal, which records sales on account, cash sales can contain a sales tax component.

Similar to a purchase discount provided by vendors to encourage prompt payment, a merchandizing business will offer a sales discount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

10

LESSON 10-2

CASH AND CREDIT CARD SALES page 279

November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 34.

1. Write the date.2. Place a check mark in the Account Title column.3. Write the terminal summary document number.4. Place a check mark in the Post. Ref. column.5. Write the sales amount.6. Write the sales tax amount.7. Write the cash amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

11

LESSON 10-2

CASH RECEIPTS ON ACCOUNT page 280

November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90.

1. Write the date.

2. Write the customer’s name.

3. Write the receipt number.

4. Write the credit amount.

5. Write the debit amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

12

LESSON 10-2

JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS page 282

November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sales Invoice No. 74 for $1,200.00, less 2% discount, $24.00. Receipt No. 91.

4. Write the original invoice amount.1. Write the date.

2. Write the customer’s name.

3. Write the receipt number.

5. Write the amount of sales discount.

6. Write the debit to cash.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 10-3

Recording Transactions Using a General Journal

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

14

LESSON 10-3

CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES page 285

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

15

LESSON 10-3

JOURNALIZING SALES RETURNS AND ALLOWANCES

12

34

6

page 286

March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $62.01. Credit Memorandum No. 41.

7 89

5

1. Write the date. 6. Write the sales tax amount.

2. Write Sales Returns and Allowances. 7. Write the accounts to be credited.

3. Write CM and the credit memorandum number.

8. Draw a diagonal line in the Post. Ref. column.

4. Write the amount of the sales return. 9. Write the total accounts receivable amount.5. Write Sales Tax Payable.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 9-4

Journalizing Other Transactions Using a General Journal

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

17

LESSON 9-4

MEMORANDUM FOR BUYING SUPPLIES ON ACCOUNT page 254

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

18

LESSON 9-4

BUYING SUPPLIES ON ACCOUNT

1

23

4

56

page 255

November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memorandum No. 52.

1. Write the date. 5. Write the account title and vendor name.2. Write the account title.

6. Place a diagonal line in the Post. Ref. column.

3. Write the memorandum number.

7. Write the credit amount.4. Write the debit amount.

7

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

19

LESSON 9-4

DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES page 256

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

20

LESSON 9-4

4. Write debit memorandum number.

November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase Invoice No. 80. Debit Memorandum No. 78.

JOURNALIZING PURCHASES RETURNS AND ALLOWANCES page 257

12

34

5

6

1. Write the date.

5. Write the amount.2. Write the account title and vendor name. 6. Write Purchases Returns and Allow.

3. Place a diagonal line in the Post. Ref. column.

7. Write the amount.

7