3.01 Study Guide

3.01 STUDY GUIDE I. Procedure for Journalizing Purchases of Merchandise on Account Using a Purchases Journal A. Write the date in the Date column. B. Write the vendor name in the Account Credited column. C. Write the purchase invoice number in the Purch. No. column. D. Record the amount of the purchase in the Purchases Debit/Accounts Payable Credit column. II. Procedure for Journalizing Purchases Other Than Merchandise on Account Using a General Journal A. Write the date in the Date column. B. Write the title of the asset account to be debited in the Account Title column. C. Write the memorandum number in the Doc. No. column. D. Record the debit amount in the Debit column. E. Write the title of the account to be credited and the vendor’s name, separated by a diagonal line, slightly indented on the next journal line in the Account Title column. F. Place a diagonal line in the Post. Ref. column on the same line as Accounts Payable/vendor. G. Record the credit amount for Accounts Payable/vendor in the Credit column. III. Procedure for Journalizing Purchases Returns and Allowances Using a General Journal A. Write the date in the Date column. B. Write the name of the account to be debited and the vendor’s name, separated by a diagonal line, in the Account Title column. C. Place a diagonal line in the Post. Ref. column. D. Write the debit memorandum number in the Doc. No. column. E. Write the amount of the debit in the Debit column on the same line as the account title/vendor. F. Write Purchases Returns and Allowances slightly indented on the next journal line in the Account Title column. G. Write the amount of the credit in the Credit column. IV. Procedure for Journalizing Cash Payments Using a Cash Payments Journal A. Journalizing cash payment of an expense 1. Write the date in the Date column. 2. Write the title of the account to be debited in the Account Title column. 3. Write the check number in the Ck. No. column. 4. Record the amount of the cash payment as a debit in the General Debit column. 5. Record the credit to Cash in the Cash Credit column. B. Journalizing cash payment for the purchase of supplies 1. Write the date in the Date column. 2. Write the title of the account to be debited in the Account Title column. 3. Write the check number in the Ck. No. column. 4. Record the amount of the cash payment as a debit in the General Debit column. 5. Record the credit in the Cash Credit column. C. Journalizing cash payment for purchase of merchandise 1. Write the date in the Date column. 2. Write the title of the account to be debited in the Account Title column. 3. Write the check number in the Ck. No. column. 4. Record the amount of the cash payment as a debit in the General Debit column. 5. Record the credit in the Cash Credit column. D. Journalizing cash payment on account with a purchases discount 1. Write the date in the Date column. 2. Write the vendor’s name in the Account Title column. 3. Write the check number in the Ck. No. column. 4. Record the amount of the purchase in the Accounts Payable Debit column. 5. Record the amount of the discount as a credit in the Purchases Discount column. 6. Record the amount paid to the vendor in the Cash Credit column. E. Journalizing cash payment on account without a purchases discount 1. Write the date in the Date column. 2. Write the vendor’s name in the Account Title column. 3. Write the check number in the Ck. No. column. 4. Record the amount of the cash payment as a debit in the Accounts Payable Debit column. 5. Record the credit to Cash in the Cash Credit column. 3.02 STUDY GUIDE I. Procedure to Journalize Merchandise Sales on Account Transactions in the Sales Journal A. Write the date in the Date column. B. Write the customer name in the Account Debited column. C. Record the sales invoice number. D. Write the total amount owed by the customer in the Accounts Receivable Debit column. E. Record the sales amount in the Sales Credit column. F. Record the sales tax amount in the Sales Tax Payable Credit column. II. Procedure to Journalize Cash Receipts A. Recording cash and credit card sales transactions in the Cash Receipts Journal III. 1. Write the date in the Date column. 2. Place a check mark in the Account Title column. 3. Write the terminal summary document number in the Doc. No. column. 4. Place a check mark in the Post. Ref. column. 5. Record the sales amount in the Sales Credit column. 6. Record sales tax amount in the Sales Tax Payable Credit column. 7. Record the cash amount in the Cash Debit column. B. Recording cash receipts on accounts transactions in the Cash Receipts Journal 1. Write the date in the Date column. 2. Record the customer’s name in the Account Title column. 3. Write the receipt number in the Doc. No. column. 4. Record the credit amount in the Accounts Receivable Credit column. 5. Record the debit amount in the Cash Debit column. C. Recording cash receipts on account with sales discount transactions in the Cash Receipts Journal 1. Write the date in the Date column. 2. Write the customer’s name in the Account Title column. 3. Write the receipt number in the Doc. No. column. 4. Record the original invoiced amount in the Accounts Receivable Credit column. 5. Record the sales discount in the Sales Discount Debit column. 6. Record the debit to cash in the Cash Debit column. Procedure to Record Merchandise Sales Returns and Allowances Transactions in the General Journal A. Write the date in the Date column. B. Write Sales Returns and Allowances in the Account Title column. C. Write CM and the credit memorandum number in the Doc. No. column. D. Record the amount of the return in the Debit column. E. Write Sales Tax Payable on the next line in the Account Title column. F. Record the sales tax amount in the Debit column. G. Indented on the next line, write the accounts to be credited in the Account Title column. H. Draw a diagonal line in the Post. Ref. column. I. Record the total accounts receivable amount in the Credit column. 3.03 STUDY GUIDE I. Accounting Procedures for Posting to the Ledgers of a Merchandising Business A. Procedures for posting to the subsidiary ledgers 1. Procedure for posting to an Accounts Payable Ledger 2. Procedure for posting to an Accounts Receivable Ledger 3. Procedure for correcting errors in subsidiary ledgers B. Procedures for posting to the General Ledger J. Posting to the General Ledger from a general journal K. Posting to the General Ledger from special journals II. Accounting Procedures for Making Adjusting Entries and Closing Entries for a Merchandising Business D. Procedures for using a multicolumn trial balance worksheet E. Procedures for making and posting adjusting entries F. Procedures for making and posting closing entries III. Accounting Procedures for Preparing Financial Statements A. Procedures for preparing a post-closing trial balance B. Procedures for preparing a financial statement