Accounting Bell Ringer Tuesday February 21 BELL RINGER

Tuesday, February 21 AGENDA Chapter 9: Lesson 9 -2: Journalizing Cash Payment Using a Cash Payments Journal Show Professional Reading for Q 3 This time we are “really” going to complete this task!!!! CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

3 CASH PAYMENTS JOURNAL CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 242

4 CASH PAYMENT OF AN EXPENSE page 243 November 2. Paid cash for advertising, $150. 00. Check No. 292. 1 1. 2. 3. 4. 5. 2 3 4 5 Write the date. Write the account title. Write the check number. Write the debit amount. Write the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -2

5 BUYING SUPPLIES FOR CASH page 243 November 5. Paid cash for office supplies, $94. 00. Check No. 293. 1 1. 2. 3. 4. 5. 2 3 4 5 Write the date. Write the account title. Write the check number. Write the debit amount. Write the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -2

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. The invoice price is the list price less a 60% trade discount. STEP 1 List Price x trade discount rate = trade discount ____ x ________ = ______ STEP 2 Total list price - trade discount = Invoice amount _____ - _____ = ______ CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

8 CASH PAYMENTS FOR PURCHASES page 244 November 7. Purchased merchandise for cash, $600. Check No. 301. 2 1 1. 2. 3. 4. 5. 3 4 5 Write the date. Write the account title. Write the check number. Write the debit amount. Write the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -2

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 1 Purchase Invoice x Purchases Discount = Purchases Amount Rate Discount _______ x ________ = ______ STEP 2 Purchase Invoice Amount - Purchases discount = Cash Amount After Discount _________ - _______ = ______ CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

12 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. 5 1 1. 2. 3. 4. 5. 6. 2 3 page 245 6 4 Write the date. Write the account title of the vendor. Write the check number. Write the debit amount. Write the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -2

13 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 1. 2. 3. 4. 5. 2 3 4 5 Write the date. Write the vendor account title. Write the check number. Write the debit amount. Write the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -2

14 TERMS REVIEW n n n n page 247 cash payments journal cash discount purchases discount general amount column list price trade discount contra account CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -2

15 ASSIGNMENT n. Work Together 9 -2 as a Class, pg. 247 CENTURY 21

16 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -1

LESSON 9 -3 Performing Additional Cash Payments Journal Operations CENTURY 21 ACCOUNTING © 2009

18 PETTY CASH REPORT 1. Write the date and 1 custodian name. 2. Write the fund total. 3. Summarize petty cash payments. 4. Calculate and write the 3 total payments. 5. Calculate and write the recorded amount on hand. 5 6. Write the actual amount of cash on hand. 7. Subtract the actual amount on hand from the recorded amount on hand write the amount. 8. Write the total of the replenish amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 248 2 4 6 7 8 LESSON 9 -3

19 REPLENISHING A PETTY CASH FUND page 249 1. 2. 3. 4. 5. Date Account titles Check number Expense amounts Cash short as a debit; cash over as a credit 6. Total cash payment 4 5 6 1 2 3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -3

TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL PAGE TO CARRY TOTALS FORWARD 20 page 250 1 2 1. 2. 3. 4. 5. 6. 3 4 5 Rule a single line. Write the date. Write the words Carried Forward in the Account Title column. Place a check mark in the Post. Ref. column. Write each column total. Rule double lines. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 9 -3

21 STARTING A NEW CASH PAYMENTS JOURNAL PAGE page 251 1 2 1. 2. 3. 4. 5. 3 4 5 Write the journal page number. Write the date. Write the words Brought Forward in the Account Title column. Place a check mark in the Post. Ref. column. Record the column totals. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -3

TOTALING, PROVING, AND RULING A CASH PAYMENTS JOURNAL AT THE END OF A MONTH 22 page 252 1 2 1. 2. 3. 4. 5. 3 4 Rule a single line. Write the date. Write the word Totals in the Account Title column. Write each column total. Rule double lines. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 9 -3

23 TERMS REVIEW page 253 n cash short n cash over CENTURY 21 ACCOUNTING

24 ASSIGNMENT n. Work Together 9 -3 as a Class, pg. 253 CENTURY 21

25 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -1

26 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -1

27 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 9 -1

28 ASSIGNMENT n On Your Own 9 -2 on Aplia practice / completion grade, pg. 247 (10 points) n On Your Own 9 -3 on Aplia practice / completion grade, pg. 253, (10 points) n Application 9 -2: Grade It Now, page 260 n Application 9 -3: Grade It Now, page 261 n Define terms for Lessons: 9 -1, 9 -2, 9 -3 n 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 LESSON 5 -1