Principles of Financial Accounting · free preview

Journalizing Transactions in Special Journals

Entering transactions in special journals follows column logic, each row records one transaction across the journal's dedicated columns, and period-end totals post to the general ledger while detail posts to subsidiary ledgers.

1. Reading a special journal layout

Reading a special journal layout

2. A day in the sales and purchases journals

A day in the sales and purchases journals

3. Cash journals carry more columns

Cash journals carry more columns

4. Reconciling the two levels

Reconciling the two levels

5. One line encodes the entry

In the sales journal, what does a single line recording 800 dollars to customer Hale accomplish?

6. Where the owner investment goes

The owner invests 5,000 dollars cash at the start of the month. Which journal records it?

7. Control account check

After posting, the accounts receivable control account shows 45,000 dollars while the subsidiary ledger customers sum to 44,200 dollars. What does the gap indicate?

8. Cash journals wider than credit journals

Why do the cash receipts and cash payments journals need more columns than the sales and purchases journals?

9. Journal for a credit purchase

A retailer buys 1,200 dollars of inventory on account from supplier Delta. Which special journal holds this line? Two words.

10. Column total posting

At month end, the sales journal receivables column totals 45,000 dollars. The single summary posting debits accounts receivable 45,000 dollars and credits which account?

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