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cash payments journal.

cash payments journal.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Journalizing Cash Payments for Marx Supply Marx Supply maintains several journals for its financial transactions, including a sales journal, purchases journal, cash receipts journal, cash payments journal, and a general journal. The following transactions need to be recorded in the cash payments journal: #### Transactions to be Recorded: - **April 3:** Purchased merchandise for $3,600 on credit from Seth, Inc., with payment terms 2/10, net 30. - **April 9:** Issued check no. 210 to Kitt Corp. for buying store supplies amounting to $576. - **April 12:** Sold merchandise that cost $626 to C. Myrs for $1,052 on credit, with terms net 30. - **April 17:** Issued check no. 211 for $1,500 to pay off a note payable to City Bank. - **April 20:** Purchased merchandise for $4,200 on credit from Lite, with payment terms 2/10, net 30. - **April 28:** Issued check no. 212 to Lite to pay for the April 20 purchase, accounting for a discount of $84. - **April 29:** Paid a salary of $2,550 to B. Dock by issuing check no. 213. - **April 30:** Issued check no. 214 to Seth, Inc., for $3,600 to settle the April 3 purchase. #### Cash Payments Journal Structure: - **Columns:** The cash payments journal is organized with the following columns: - Date - Check Number (Ck. No) - Payee - Account Debited - Cash Credit (Cash Cr.) - Inventory Credit (Inventory Cr.) - Other Accounts Debit (Other Accounts Dr.) - Accounts Payable Debit (Accounts Payable Dr.) The journal provides a clear framework for recording the outflow of cash and ensuring that each transaction is properly accounted for.
Transcribed Image Text:### Journalizing Cash Payments for Marx Supply Marx Supply maintains several journals for its financial transactions, including a sales journal, purchases journal, cash receipts journal, cash payments journal, and a general journal. The following transactions need to be recorded in the cash payments journal: #### Transactions to be Recorded: - **April 3:** Purchased merchandise for $3,600 on credit from Seth, Inc., with payment terms 2/10, net 30. - **April 9:** Issued check no. 210 to Kitt Corp. for buying store supplies amounting to $576. - **April 12:** Sold merchandise that cost $626 to C. Myrs for $1,052 on credit, with terms net 30. - **April 17:** Issued check no. 211 for $1,500 to pay off a note payable to City Bank. - **April 20:** Purchased merchandise for $4,200 on credit from Lite, with payment terms 2/10, net 30. - **April 28:** Issued check no. 212 to Lite to pay for the April 20 purchase, accounting for a discount of $84. - **April 29:** Paid a salary of $2,550 to B. Dock by issuing check no. 213. - **April 30:** Issued check no. 214 to Seth, Inc., for $3,600 to settle the April 3 purchase. #### Cash Payments Journal Structure: - **Columns:** The cash payments journal is organized with the following columns: - Date - Check Number (Ck. No) - Payee - Account Debited - Cash Credit (Cash Cr.) - Inventory Credit (Inventory Cr.) - Other Accounts Debit (Other Accounts Dr.) - Accounts Payable Debit (Accounts Payable Dr.) The journal provides a clear framework for recording the outflow of cash and ensuring that each transaction is properly accounted for.
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