Record all of these transactions in a cash disbursement journal table, such as this one: Date Explanation A/R Sub Account # Cash (debit) Sales Revenue (credit) Account Receivable (credit) Other (credit) Other Account Name Dec 1: Purchased 12,000 shares of treasury stock for $120,000 (Check #500 payable to Tennett Corp). The company expects to reissue these shares at a later date. Dec 1: Lent $50,000 in cash to one of its suppliers (Check #501 payable to Woodson Corp). The supplier signed a 1-year, 12% promissory note with a face value of $50,000. The note’s face value plus interest is due on 12/1/X6 Dec 4: Paid the Nelson Industries invoice for the balance owed. Dec 5: Paid the November utilities bill of $5,500 (this was already recognized as an expense in November). (Check #503 payable to Progress Energy) Dec 11: Paid Centennial, Inc. for the balance owed. (Check #505) Dec 11: Paid Bailey Corp. for the balance owed. (Check #506) Dec 18: Purchased inventory items from a new vendor (Smith) for $20,000 cash. (Check #507) Dec 21: Paid Centennial, Inc. for the balance still due. (Check #508) Dec 31: Paid gross salaries of $15,000 (Checks #509-#520). Note: Ignore withholdings and list the payee as “Various”. Dec 31: Paid $4,000 on the installment note that originated on December 1 (Check #521).
Record all of these transactions in a cash disbursement journal table, such as this one:
| Date | Explanation | A/R Sub Account # | Cash (debit) | Sales Revenue (credit) | Other (credit) | Other Account Name | |
Dec 1: Purchased 12,000 shares of
Dec 1: Lent $50,000 in cash to one of its suppliers (Check #501 payable to Woodson Corp). The supplier signed a 1-year, 12% promissory note with a face value of $50,000. The note’s face value plus interest is due on 12/1/X6
Dec 4: Paid the Nelson Industries invoice for the balance owed.
Dec 5: Paid the November utilities bill of $5,500 (this was already recognized as an expense in November). (Check #503 payable to Progress Energy)
Dec 11: Paid Centennial, Inc. for the balance owed. (Check #505)
Dec 11: Paid Bailey Corp. for the balance owed. (Check #506)
Dec 18: Purchased inventory items from a new vendor (Smith) for $20,000 cash. (Check #507)
Dec 21: Paid Centennial, Inc. for the balance still due. (Check #508)
Dec 31: Paid gross salaries of $15,000 (Checks #509-#520). Note: Ignore withholdings and list the payee as “Various”.
Dec 31: Paid $4,000 on the installment note that originated on December 1 (Check #521).
A cash disbursement journal is a record of a company's internal accounts that itemizes all financial expenditures made with cash or cash equivalents.
A cash disbursement journal is done before payments are posted to the general ledger and is used in creating a general ledger.
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