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Mar. 1 Rent Revenue 400 400

CASH RECEIPTS JOURNAL. Page 14. Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. Mar. 1 Rent Revenue 400 400. 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750.

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Mar. 1 Rent Revenue 400 400

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  1. CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 Accounts Receivable Subsidiary Ledger Web Cantina Date Item P.R. Debit Credit Balance 2006 Mar. 1 Bal. 3,400 18 R35 2,650 6,050 19 CR14 3,400 2,650 Posting the Cash Receipts Journal 2006 

  2. The Cash Receipts Journal After all journalizing and posting to the accounts receivable subsidiary ledger for the month is complete, the columns are totaled.

  3. CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 The total “Cash Dr.” column equals the total of the two credit columns. The Cash Receipts Journal Mar. 1 Rent Revenue 400 400 19 Web Cantina  3,400 3,400 28 MyMusicClub.com  2,200 2,200 30 RapZone.com  1,750 1,750 31 400 7,350 7,750

  4. GENERAL LEDGER Account: Accounts Receivable No. 12 Date Item P.R. Debit Credit Balance 2006 Mar. 1 Bal  3,400 31 R35 9,600 13,000 Posting the Cash Receipts Journal CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 Mar. 1 Rent Revenue 400 400 19 Web Cantina  3,400 3,400 28 MyMusicClub.com  2,200 2,200 30 RapZone.com  1,750 1,750 31 400 7,350 7,750 The three circled items are posted to the general ledger. Let’s post Accounts Receivable.

  5. GENERAL LEDGER Account: Accounts Receivable No. 12 Date Item P.R. Debit Credit Balance 2006 Mar. 1 Bal  3,400 31 R35 9,600 13,000 Posting the Cash Receipts Journal CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 Mar. 1 Rent Revenue 400 400 19 Web Cantina  3,400 3,400 28 MyMusicClub.com  2,200 2,200 30 RapZone.com  1,750 1,750 31 400 7,350 7,750 31 7,350 CR14 5,650

  6. Posting the Cash Receipts Journal CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 Mar. 1 Rent Revenue 400 400 19 Web Cantina  3,400 3,400 28 MyMusicClub.com  2,200 2,200 30 RapZone.com  1,750 1,750 31 400 7,350 7,750 ( ) (12) 

  7. Posting the Cash Receipts Journal The $7,750 total in the Cash Debit column is posted to Cash in a similar manner.

  8. Posting the Cash Receipts Journal The $400 credit to Rent Revenue could have been posted earlier, but posting it at the same time as other general ledger accounts is proper.

  9. Posting the Cash Receipts Journal A completely posted cash receipts journal is shown in the next slide.

  10. Posted Cash Receipts Journal CASH RECEIPTS JOURNAL Page 14 Other Accounts Post Accounts Receivable Cash Date Account Credited Ref. Cr. Cr. Dr. 2006 42 Mar. 1 Rent Revenue 400 400 19 Web Cantina  3,400 3,400 28 MyMusicClub.com  2,200 2,200 30 RapZone.com  1,750 1,750 31 400 7,350 7,750 ( ) (12) (11) 

  11. GENERAL LEDGER ACCOUNT Accounts Receivable No. 12 Date Item P.R. Debit Credit Balance Mar. 1 Bal 3,400 31 R35 9,600 13,000  31 CR14 7,350 5,650 Accounts Receivable Control Account If the accounts receivable account in the general ledger only shows summary totals, where are the individual customer balances?

  12. GENERAL LEDGER ACCOUNT Accounts Receivable No. 12 Date Item P.R. Debit Credit Balance Mar. 1 Bal 3,400 31 R35 9,600 13,000  31 CR14 MyMusicClub.com 7,350 5,650 Accounts Receivable Control Account Date Item P.R. Debit Credit Balance 3/2 R35 2,200 2,200 3/27 R35 3,000 5,200 3/28 CR14 2,200 3,000 Accounts Receivable Subsidiary Ledger RapZone.com Date Item P.R. Debit Credit Balance 3/6 R35 1,750 1,750 3/30 CR14 1,750 -- Web Cantina Date Item P.R. Debit Credit Balance 3/1 Bal. 3,400 3/18 R35 2,650 6,050 3/19 CR14 3,400 2,650 

  13. The Purchases Journal

  14. The purchases journal is designed for recording all purchases on account.

  15. 2006 Mar. 3 Howard Supplies 600 600 Journalizing in the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount On March 3, 2003, NetSolutions purchased supplies from Howard Supplies, $600.

  16. 2006 Mar. 3 Howard Supplies 600 600 Accounts Payable Subsidiary Ledger Howard Supplies 2006 Mar 3 600 600 Date Item P.R. Dr. Cr. Balance Posting the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount To keep the accounts payable subsidiary ledger current, this entry is posted on March 3.

  17. 2006 Mar. 3 Howard Supplies 600 600 Posting the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount Accounts Payable and Supplies will be posted as totals.

  18. 2006 Mar. 3 Howard Supplies 600 600 Journalizing in the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount 7 Donnelly Supplies 420 420 On March 7, NetSolutions purchased supplies from Donnelly Supplies, $420.

  19. 2006 Mar. 3 Howard Supplies 600 600 Journalizing in the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount 7 Donnelly Supplies 420 420

  20. 2006 Mar. 3 Howard Supplies 600 600 Journalizing in the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount 7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 2,800 On March 12, NetSolutions purchased office equipment from Jewett Business Systems, $2,800. Because there isn’t a special column for Office Equipment, this purchase was recorded under “Other Accounts Dr.”

  21. 2006 Mar. 3 Howard Supplies 600 600 19 Donnelly Supplies 1,450 1,450 27 Howard Supplies 960 960 Journalizing in the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount 7 Donnelly Supplies 420 420 12Jewett Bus. Sys. 2,800 Off. Equip. 2,800 Now, let’s look at the rest of March’s entries (assume that all postings to the accounts payable subsidiary ledger have been made).

  22. 2006 Mar. 3 Howard Supplies 600 600 19 Donnelly Supplies 1,450 1,450 27 Howard Supplies 960 960 Totaling the Purchases Journal Page 11 PURCHASES JOURNAL Accts. Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount 7 Donnelly Supplies 420 420 12Jewett Bus. Sys. 2,800 Off. Equip. 2,800 31 6,230 3,430 2,800 At the end of March, all columns are totaled and equality of debits and credits is verified. $6,230 = $3,430 + $ 2,800

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