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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 9-1LESSON 9-1
Journalizing Purchases Using a Purchases Journal
CENTURY 21 ACCOUNTING © Thomson/South-Western
Merchandising BusinessMerchandising Business Chapters 9 and beyond will now deal with merchandising
businesses. A merchandising business purchases goods to sell Merchandise is the goods that a business purchases to
sell
Types of merchandising business are: Retail business (sells directly to customers who consume the
merchandise)
Wholesale business (sells retail directly to other businesses)
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LESSON 9-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Proprietorship vs. CorporationProprietorship vs. Corporation
A proprietorship is a business owned by just one owner
A corporation is owned by many persons
A unit of ownership in a corporation is a share of stock
An owner of one or more shares of a corporation is a stockholder.
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LESSON 9-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Special JournalSpecial Journal
A business who has a limited amount of transactions (small business) can record all transactions in one general journal
A business who has multiple transactions may choose to use a separate journal to record each type of transaction called a special journal
Examples include Purchases journal Cash payments journal Sales journal Cash receipts journal General Journal
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LESSON 9-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
Purchasing MerchandisePurchasing Merchandise
The price a business pays for goods it purchases is called the cost of merchandise
In order to make a profit, a business must charge customers more money than it cost to purchase the merchandise, this is called a markup price
Revenue includes the cost of merchandise and the markup price.
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LESSON 9-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
9-1: Journalizing Purchases Using a Purchases Journal
Mr. Stasa – WE City Schools
http://northbiz.weebly.com
http://www.twitter.com/@north_biz
CENTURY 21 ACCOUNTING © Thomson/South-Western
7
LESSON 9-1
PURCHASES JOURNALPURCHASES JOURNAL page 237
CENTURY 21 ACCOUNTING © Thomson/South-Western
8
LESSON 9-1
PURCHASING MERCHANDISEPURCHASING MERCHANDISE page 236
CENTURY 21 ACCOUNTING © Thomson/South-Western
9
LESSON 9-1
PURCHASES ON ACCOUNTPURCHASES ON ACCOUNT page 236
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 9-1
PURCHASING MERCHANDISE ON PURCHASING MERCHANDISE ON ACCOUNTACCOUNT
1122
33 44
page 239
November 2. Purchased merchandise on account from Crown Distributing, $2,039.00. Purchase Invoice No. 83.
1. Write the date.
2. Write the vendor name.
3. Write the purchase invoice number.
4. Write the amount of the invoice.
CENTURY 21 ACCOUNTING © Thomson/South-Western
11
LESSON 9-1
TOTALING AND RULING A PURCHASES TOTALING AND RULING A PURCHASES JOURNALJOURNAL
2233 44 55
page 240
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661. Rule a single line across the amount column.
2. Write the date.
3. Write the word Total.
4. Add the amount column.
5. Write the total.
6. Rule double lines across the amount column.