CHAPTER 10 Merchandise 2000 SouthWestern Educational Publishing EXPANDED
CHAPTER 10 Merchandise © 2000 South-Western Educational Publishing
EXPANDED JOURNAL Lesson 10 -1, page 229 © 2000 South-Western Educational Publishing
Lesson 9 -1 Merchandising Businesses LO 1 • Goods that a business purchases to sell are called • • • merchandise. A business that purchases and resells goods is called a merchandising business. A merchandising business that sells to those who use or consume the goods is called a retail merchandising business. A wholesale merchandising business buys and resells merchandise primarily to other merchandising businesses. © 2000 South-Western SLIDE 2 Gilbertson, Century 21 Accounting General Journal, 11 Edition. © 2019 Cengage. All Rights Reserved. Educational Publishing May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PURCHASING MERCHANDISE FOR CASH November 1. Purchased merchandise for cash, $575. 00 Check No. 290. 2. How is each account classified? Purchases is a cost account. Cash is an asset account. 3. How is each classification changed? Costs are increased. Assets are decreased. 4. How is each amount entered in the accounts? Costs increase on the debit side. Assets decrease on the credit side. Debit Normal Balance 575. 00 Cash Debit Normal Balance 575. 00 1. Which accounts are affected? Purchases Cash Purchases Lesson 10 -1, page 231 © 2000 South-Western Educational Publishing
PURCHASING MERCHANDISE FOR CASH 1 3 2 6 4 5 1. Write the date. 2. Place a check mark in the Account Title column to show that no account title is needed. 3. Write the check number. 4. Place a check mark in the Post. Ref. column to show that amounts are not to be posted individually. 5. Write the debit amount. 6. Write the credit amount. Lesson 10 -1, page 231 © 2000 South-Western Educational Publishing
Lesson 9 -2 Purchase Invoice LO 6 • An invoice used as a source document for recording • • a purchase on account transaction is called a purchase invoice. An agreement between a buyer and a seller about payment for merchandise is called the terms of sale. The date by which an invoice must be paid is called the due date. © 2000 South-Western SLIDE 11 Gilbertson, Century 21 Accounting General Journal, 11 Edition. © 2019 Cengage. All Rights Reserved. Educational Publishing May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PURCHASE INVOICE 1 4 2 1. Stamp date received and purchase invoice number. 2. Place a check mark by each amount. 3. Initials of person who checked invoice. 4. Review vendor’s terms of sale. 3 Lesson 10 -2, page 233 © 2000 South-Western Educational Publishing
PURCHASING MERCHANDISE ON ACCOUNT November 2. Purchased merchandise on account from Crown Ltd. , $2, 039. 99. Purchase Invoice No. 83. 1. Which accounts are affected? Purchases Accounts Payable 2. How is each account classified? Purchases is a cost account. Accounts Payable is a liability account. 3. How is each classification changed? Costs are increased. Liabilities are increased. 4. How is each amount entered in the accounts? Costs increase on the debit side. Liabilities increase on the credit side. Purchases Debit Normal Balance 2, 039. 00 Accounts Payable Credit Normal Balance 2, 039. 00 Lesson 10 -2, page 234 © 2000 South-Western Educational Publishing
PURCHASING MERCHANDISE ON ACCOUNT 1 2 3 4 5 1. Write the date. 2. Write the vendor name in the Account Title column. 3. Write the purchase invoice number in the Doc. No. column. 4. Write the credit amount. 5. Write the debit amount. Lesson 10 -2, page 234 © 2000 South-Western Educational Publishing
BUYING SUPPLIES FOR CASH 1 2 3 4 5 1. Write the date. 2. Write the account title. 3. Write the check number. 4. Write the debit amount. 5. Write the credit amount. Lesson 10 -2, page 235 © 2000 South-Western Educational Publishing
BUYING SUPPLIES ON ACCOUNT 1 2 3 4 6 5 1. Write the date. 2. Write the account title. 3. Write the memorandum number. 4. Write the debit amount. 5. Write the vendor name. 6. Write the credit amount. Lesson 10 -2, page 236 © 2000 South-Western Educational Publishing
CASH PAYMENT ON ACCOUNT 1 2 3 4 5 1. Write the date. 2. Write the vendor name. 3. Write the check number. 4. Write the debit amount. 5. Write the credit amount. Lesson 10 -3, page 238 © 2000 South-Western Educational Publishing
CASH PAYMENT OF AN EXPENSE 1 2 3 4 5 1. Write the date. 2. Write the vendor name account title. 3. Write the check number. 4. Write the debit amount. 5. Write the credit amount. Lesson 10 -3, page 239 © 2000 South-Western Educational Publishing
CASH PAYMENT TO REPLENISH PETTY CASH November 9. Paid cash to replenish the petty cash fund, $205. 00: office supplies, $35. 00; store supplies, $47. 00; advertising, $92. 00; miscellaneous, $31. 00. Check No. 297. Supplies—Office Classification Asset Expense Asset Advertising Expense normal balance 35. 00 92. 00 Supplies—Store Cash normal balance 205. 00 Miscellaneous Expense normal balance 47. 00 31. 00 Entered Debit side Credit side Change Increased Decreased Accounts Affected Supplies—Office Supplies—Store Advertising Expense Miscellaneous Expense Cash Lesson 10 -3, page 240 © 2000 South-Western Educational Publishing
CASH PAYMENT TO REPLENISH PETTY CASH 1 2 3 5 4 1. Write the date. 2. Write the titles of accounts for which petty cash was used. 3. Write the check number. 4. Write the debit amounts. 5. Write the credit amount. Lesson 10 -3, page 240 © 2000 South-Western Educational Publishing
CASH WITHDRAWALS BY PARTNERS November 10. Michelle Wu, partner, withdrew cash for personal use, $1, 200. Check No. 298. Michelle Wu, Drawing normal balance 1, 200. 00 Classification Drawing Asset Change Increased Decreased Entered Debit side Credit side Cash normal balance Accounts Affected Michelle Wu, Drawing Cash 1, 200. 00 Lesson 10 -3, page 241 © 2000 South-Western Educational Publishing
CASH WITHDRAWALS BY PARTNERS 1 2 3 4 5 1. Write the date. 2. Write the account title. 3. Write the check number. 4. Write the debit amount. 5. Write the credit amount. Lesson 10 -3, page 241 © 2000 South-Western Educational Publishing
MERCHANDISE WITHDRAWALS BY PARTNERS November 12. Karl Koehn, partner, withdrew merchandise for personal use, $300. Memorandum No. 53. Karl Koehn, Drawing normal balance 300. 00 Classification Drawing Cost Change Increased Decreased Entered Debit side Credit side Purchases normal balance Accounts Affected Karl Koehn, Drawing Purchases 300. 00 Lesson 10 -3, page 242 © 2000 South-Western Educational Publishing
MERCHANDISE WITHDRAWALS BY PARTNERS 1 2 3 5 4 6 1. Write the date. 2. Write the account title Karl Koehn, Drawing. 3. Write the memorandum number. 4. Write the debit amount. 5. Write the account title Purchases. 6. Write the credit amount. Lesson 10 -3, page 242 © 2000 South-Western Educational Publishing
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