century 21 accounting © thomson/south-western lesson 9-2 journalizing cash payments using a cash...
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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 9-2LESSON 9-2
Journalizing Cash Payments Using a Cash Payments Journal
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-1
PURCHASES JOURNALPURCHASES JOURNAL page 237
REVIEW
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-1
PURCHASING MERCHANDISE ON PURCHASING MERCHANDISE ON ACCOUNTACCOUNT
1122
33 44
page 239
November 2. Purchased merchandise on account from Crown Distributing, $2,039.00. Purchase Invoice No. 83.
1. Write the date.
2. Write the vendor name.
3. Write the purchase invoice number.
4. Write the amount of the invoice.REVIEW
CENTURY 21 ACCOUNTING © Thomson/South-Western
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-2
CASH PAYMENTS JOURNALCASH PAYMENTS JOURNAL page 242
The cash payments journal is used only for cash payment transactions.
Special amount columns include:•Accounts Payable dr.•Purchases Discount cr.•Cash cr.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-2
CASH PAYMENT OF AN EXPENSECASH PAYMENT OF AN EXPENSE page 243
November 2. Paid cash for advertising, $150.00. Check No. 292.
1. Write the date.
2. Write the account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-2
BUYING SUPPLIES FOR CASHBUYING SUPPLIES FOR CASH page 243
November 5. Paid cash for office supplies, $94.00. Check No. 293.
1. Write the date.
2. Write the account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-2
CASH PAYMENTS FOR PURCHASESCASH PAYMENTS FOR PURCHASES page 244
November 7. Purchased merchandise for cash, $600.00. Check No. 301.
1. Write the date.
2. Write the account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
CENTURY 21 ACCOUNTING © Thomson/South-Western
DiscountsDiscounts
To encourage early payment, a vendor may allow a cash discount on the invoice amount.
A cash discount on purchases taken by a customer is a purchases discount. The customer pays less than the invoice amount.
A reduction in the invoice list price granted to a customer is a trade discount.
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LESSON 9-2
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-2
CASH PAYMENTS ON ACCOUNT WITH CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTSPURCHASES DISCOUNTS page 245
November 8. Paid cash on account to Gulf Craft Supply, $488.04, covering Purchase Invoice No. 82 for $498.00, less 2% discount, $9.96. Check No. 302.
1. Write the date.
2. Write the account title of the vendor.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
6. Write the credit amount.
Pre-Discount
Post-Discount
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-2
CASH PAYMENTS ON ACCOUNT WITH CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTSPURCHASES DISCOUNTS page 246
November 13. Paid cash on account to American Paint, $2,650.00, covering Purchase Invoice No. 77. Check No. 303.
1. Write the date.
2. Write the vendor account title.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
CENTURY 21 ACCOUNTING © Thomson/South-Western
9-2 Work Together9-2 Work Together
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LESSON 9-2
CENTURY 21 ACCOUNTING © Thomson/South-Western
9-2 OYO9-2 OYO
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LESSON 9-2
• Nov 2: Paid cash for the electric bill, $248.00. C432• Nov 6: Paid cash for office supplies, $142.00. C433• Nov 9: Paid cash to Zebra Metals for merchandise with a list price of $3,400.00,
less a 40% trade discount. C434• Nov 12: Paid cash on account to Racing Images covering Purchase Invoice No.
543 for $4,230.00, less 2% discount. C435• Paid cash on account to SPL, Renovation covering Purchase Invoice No. 182 for
$2,573.00. No cash discount was offered. C436
CENTURY 21 ACCOUNTING © Thomson/South-Western
9-2 Application Answers9-2 Application Answers
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LESSON 9-2
• Nov 1: Paid cash for telephone bill, $96.00. C241• Nov 4: Paid cash on account to The Pro Shop $1,250.00 covering P367,
less 2% discount. C242.• Nov 6: Paid cash for advertising $75.00. C243• Nov 9: Paid cash on account to Athletic Center, $925.00 covering P362.
No cash discount was offered. C244• Nov 11: Paid cash for office supplies $125.00. C247
CENTURY 21 ACCOUNTING © Thomson/South-Western
9-2 Appl. Cont.9-2 Appl. Cont. 15
LESSON 9-2
• Nov 13: Paid cash to Tennis City for merchandise with list price of $1,850.00 less a 50% trade discount. C246.
• Nov 18: Paid cash for store supplies, $135.00. C247• Nov 21: Purchased merchandise fir cash from Trevor Industries $250.00. C248• Nov 23: Purchased merchandise for cash from Paris Mfg. Co. $750,00 less a 60% trade discount. C249• Nov 25: Paid cash on account to Best Clothing $925.00 covering P363. No cash discount was offered.
C250• Nov 27: Paid cash on account to Trophy Sports $2,100 covering P373, less 2% discount. C251
CENTURY 21 ACCOUNTING © Thomson/South-Western
2/10 means that 2% of the invoice amount may be deducted if paid within 10 days
n/30 means the total invoice amount must be paid within 30 days.
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LESSON 9-2