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(a) & (c)
Cash Receipts Journal
Cash receipts journal is used to record merchandise sales and service made in cash and collection of accounts receivable. It also records all other cash receipts from issuance of shares and bonds, bank loans, and proceeds from disposal of assets. To include all these transactions, companies use multi-column cash receipts journal.
Cash Payments Journal
Cash payments journal is used to record merchandise purchases made in cash and payments of accounts payable. It also records all other cash payments to various purposes. To include all these transactions, companies use multi-column cash payments journal.
Sales Journal
Sales journal records all the merchandise sales on credit. In a single column sales journal, debit aspect of accounts receivable and credit aspect of inventory are recorded, and then posted to individual subsidiary customer account.
Purchase Journal
Purchase journal records all the merchandise purchase on credit. In a single column purchase journal, debit aspect of inventory and credit aspect of accounts payable are recorded, and then posted to individual subsidiary supplier account.
General Journal
It is a book where all the monetary transactions are recorded in the form of
To prepare: general ledger and make individual entries and totals to general ledger.
(b) & (c)
To journalize: the transactions in a cash receipt journal, cash payment journal, sales journal, purchase journal and general journal.
(d)
To prepare:
(e)
To Prove: the agreement of control account and subsidiary account balances.
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Chapter J Solutions
FINANCIAL ACCT.-W/ETEXTBOOK
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