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Mr. Belolan

Ch. 10 Journalizing Purchases and Cash Payments. Mr. Belolan. Chapter Objectives. Journalize and Post transactions to the Cash Payments Journal Total, prove and rule the Cash Payments Journal Prepare a schedule of Accounts Payable. Which Journal?. Special Journals Sales Cash Receipts

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Mr. Belolan

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  1. Ch. 10 Journalizing Purchases and Cash Payments Mr. Belolan

  2. Chapter Objectives • Journalize and Post transactions to the Cash Payments Journal • Total, prove and rule the Cash Payments Journal • Prepare a schedule of Accounts Payable

  3. Which Journal? • Special Journals • Sales • Cash Receipts • Purchases • Cash Payments

  4. Why Use Special Journals? • Less clutter • Organization • Money In • Money Out

  5. Prepaid Insurance • Purchased by business to protect against fire, theft or flood • Amount paid is called a premium • Paid in advance • An asset, debit balance

  6. Paying Expenses • Examples? • Rent • Utilities • Advertising • Salaries • How can we increase profits based on our expenses? • Recorded in cash payments journal

  7. Other Cash Payments • Pay for invoices received • FOB destination -- supplier pays shipping cost • FOB shipping point -- buyer pays shipping cost

  8. Concept Review • Why should we use the 4 special journals? • Why would a business purchase and offer purchases on account? • Problem 10-1, 10-2 • Text page 245 • Workbook page 213, 215 & 217

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