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Accounting Systems

Accounting Systems. LO 2e- Journalizing and Posting the Cash Payments Journal. All transactions involving a credit to Cash are recorded in the cash payments journal. LO 2. Cash Payments Journal. LO 2. Exhibit 6 (in steps). CASH PAYMENTS JOURNAL. PAGE 7. Other Accounts

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Accounting Systems

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  1. Accounting Systems LO 2e- Journalizing and Posting the Cash Payments Journal

  2. All transactions involving a credit to Cash are recorded in the cash payments journal. LO 2 Cash Payments Journal

  3. LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2012 Mar. 2 150 Rent Expense 1,600 1,600 On March 2, 2012, issued Check 150 for rent of $1,600. (continued)

  4. 2012 Mar. 2 LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2012 Mar. 2 150 Rent Expense 1,600 1,600 52 General Ledger Account Rent Expense Account No. 52 Date Item P.R. Dr. Cr. Balance CP7 1,600 1,600 (continued)

  5. LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2010 Mar. 2 150 Rent Expense 1,600 1,600 52 15 151 Grayco Supplies 1,230 1,230 On March 15, issued Check 151 to Grayco Supplies for $1,230. (continued)

  6. LO 2 Cash Payments Journal Let’s post to the accounts payable subsidiary ledger at this time to keep the creditors’ accounts current.

  7. Accounts Payable Subsidiary Ledger Grayco Supplies Date Item P.R. Dr. Cr. Balance Mar. 1 Bal. 1,230 LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2012 Mar. 2 150 Rent Expense 1,600 1,600 52  15 151 Grayco Supplies 1,230 1,230 2012 --- 15 CP7 1,230 (continued)

  8. LO 2 Cash Payments Journal Now, let’s journalize the remainder of March’s cash disbursements. Following that, let’s post to the individual creditors’ accounts.

  9. LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2010 52 Mar. 2 150 Rent Expense 1,600 1,600  15 151 Grayco Supplies 1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies 600 600 (continued)

  10.   LO 2 Exhibit 6 (in steps) CASH PAYMENTS JOURNAL PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2012 52 Mar. 2 150 Rent Expense 1,600 1,600  15 151 Grayco Supplies 1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies 600 600 54 (continued)

  11. LO 2 Cash Payments Journal The journal is ruled, summed, and verified for the equality of the debits and the Cash Cr. column.

  12. CASH PAYMENTS JOURNAL CASH PAYMENTS JOURNAL PAGE 7 PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2008 Mar. 2 150 Rent Expense 1,600 1,600   54  31 2,650 5,050 7,700 LO 2 Cash Payments Journal 2012 52 Mar. 2 150 Rent Expense 1,600 1,600  15 151 Grayco Supplies 1,230 1,230 15 151 Grayco Supplies 1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies 600 600 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies 600 600 (continued)

  13. CASH PAYMENTS JOURNAL CASH PAYMENTS JOURNAL PAGE 7 PAGE 7 Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr Other Accounts Ck. Post Accounts Payable Cash Date No. Account Debited Ref. Dr. Dr. Cr 2008 Mar. 2 150 Rent Expense 1,600 1,600   54 ( )    31 2,650 5,050 7,700 (11) (21) LO 2 Cash Payments Journal 2012 52 Mar. 2 150 Rent Expense 1,600 1,600  15 151 Grayco Supplies 1,230 1,230 15 151 Grayco Supplies 1,230 1,230 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies 600 600 21 152 Jewett Business Sys. 2,800 2,800 22 153 Donnelly Supplies 420 420 30 154 Utilities Expense 1,050 1,050 31 155 Howard Supplies 600 600 The totals for Accounts Payable Dr. and Cash Cr. are posted.

  14. LO 2 Accounts Payable Account After all posting has been completed, the balances in the accounts payable subsidiary ledger should equal the balance of the accounts payable controlling account in the general ledger.

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