CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Accounting Bell Ringer

Tuesday, February 21BELL RINGER

Purchases Journal Short Answer worksheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Tuesday, February 21AGENDA

Chapter 9: Lesson 9-2: Journalizing Cash Payment Using a Cash Payments

Journal

Show Professional Reading for Q3 This time we are “really” going to

complete this task!!!!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-2

CASH PAYMENTS JOURNAL page 242

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LESSON 9-2

CASH 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.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-2

BUYING 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.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

CASH PAYMENTS FOR PURCHASES

Cash payments for purchases: The retail price listed in a manufacturer/wholesalers catalog or on the internet is referred to as the ______ _______. If a business purchases a number of products, the price can be quoted as the list price less the _________ __________. The purchases receives a discount for buying large quantities.  When a trade discount is granted, the seller’s invoice shows the _________ _________ ________. This amount after the discount has been deducted is the invoice amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

The trade discount is calculated as follows in two steps:The list price for 10 ceramic molds in $1500.00. The invoice price is the list price less a 60% trade discount.STEP 1List Price x trade discount rate = trade discount________ x _______________ = ___________STEP 2Total list price - trade discount = Invoice amount__________ - __________ = ___________

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-2

CASH 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.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS

A cash discount is stated as a ____________ deducted from the _________ __________,For example: 2/10, n/30 is a common term of sale which is read:______ ________, ______ ________.It means ______ of the invoice can be deducted if it is paid within _____ ______ of the invoice date. _______ ________ means that the total invoice amount must be paid with in thirty days.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS

A business wants to keep track of the purchase discounts so creates (in the chart of accounts) a general ledger account titled purchase discounts.

Purchases Discounts _________ the amount journalized in the Purchases journal. An account that reduces a related account on a financial statement is called a _______ _________.

On the _________ _________, Purchases Discount is deducted from the balance of its __________ account, Purchases.

__________ discounts are not recorded, ______ discounts are.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

CASH PAYMENTS ON ACCOUNT WITH PURCHASES DISCOUNTS

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.

Purchase Discounts are calculated:STEP 1Purchase Invoice x Purchases Discount = Purchases Amount Rate Discount_____________ x _______________ = ___________STEP 2Purchase Invoice Amount - Purchases discount = Cash Amount After Discount_________________ - _____________ = ___________

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-2

CASH PAYMENTS ON ACCOUNT WITH PURCHASES 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.

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6. Write the credit amount.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-2

CASH PAYMENTS ON ACCOUNT WITHOUT PURCHASES 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.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-2

TERMS REVIEW

cash payments journal cash discount purchases discount general amount column list price trade discount contra account

page 247

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

ASSIGNMENT

Work Together 9-2 as a Class, pg. 247

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 9-3

Performing Additional Cash Payments Journal Operations

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-3

PETTY CASH REPORT

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page 248

6. Write the actual amount of cash on hand. 8

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3

657

1. Write the date and custodian name.

2. Write the fund total.3. Summarize petty cash

payments.4. Calculate and write the

total payments.5. Calculate and write the

recorded amount on hand.

7. Subtract the actual amount on hand from the recorded amount on hand and write the amount.

8. Write the total of the replenish amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-3

REPLENISHING A PETTY CASH FUND

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page 249

1. Date2. Account titles3. Check number4. Expense amounts5. Cash short as a debit;

cash over as a credit

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6. Total cash payment

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-3

TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD

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page 250

1

61. Rule a single line.2. Write the date.3. Write the words Carried Forward in the Account Title column.4. Place a check mark in the Post. Ref. column.5. Write each column total.6. Rule double lines.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-3

STARTING A NEW CASH PAYMENTS JOURNAL PAGE

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page 251

1. Write the journal page number.2. Write the date.3. Write the words Brought Forward in the Account Title column.4. Place a check mark in the Post. Ref. column.5. Record the column totals.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-3

TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH

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page 252

1. Rule a single line.2. Write the date.3. Write the word Totals in the Account Title column.4. Write each column total.5. Rule double lines.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-3

TERMS REVIEW

cash short cash over

page 253

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

ASSIGNMENT

Work Together 9-3 as a Class, pg. 253

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 9-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

ASSIGNMENT

On Your Own 9-2 on Aplia practice / completion grade, pg. 247 (10 points)

On Your Own 9-3 on Aplia practice / completion grade, pg. 253, (10 points)

Application 9-2: Grade It Now, page 260 Application 9-3: Grade It Now, page 261 Define terms for Lessons: 9-1, 9-2, 9-3 Show me your professional reading book (25 pts.)

REMINDER: The first FOUR modules in Everfi (everfi.net) must be complete before interims.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

Exit Ticket

DEFINE THE NINE TERMS FOR LESSON 9-2 and 9-3

PLEASE REMEMBER TO PUT THE BOOKS IN THE CABINET