Principles of Financial Accounting · free preview

Special Journals and Why They Matter

Special journals group high-volume repetitive transactions, sales, purchases, cash receipts, and cash payments, so that posting compresses from hundreds of individual entries to a few column totals each period.

1. The bottleneck of one journal

The bottleneck of one journal

2. The four common special journals

The four common special journals

3. The posting shortcut

The posting shortcut

4. Why stakeholders care

Why stakeholders care

5. Which journal records a credit sale

A retailer sells 800 dollars of goods on account. Which special journal records the sale?

6. Which journal records a supplier payment

A company pays a supplier 2,400 dollars by check. Which special journal applies?

7. The posting shortcut

A month's sales journal shows 300 individual credit sales with an accounts receivable column total of 45,000 dollars. How does posting to the general ledger work?

8. Home of adjusting entries

Where do adjusting entries get recorded in a system with special journals?

9. Number of common special journals

How many special journals does the system described in this lesson use? Give the number only.

10. Sales journal posting target

In a special journal system, individual lines from the sales journal post to which ledger that tracks each customer balance separately from the general ledger?

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