LESSON 9-1
Journalizing Purchases
Using a Purchases Journal
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
Merchandising Businesses
 merchandise: goods that a business purchases to
sell
 merchandising business: a business that
purchases and sells goods
 retail merchandising business: a merchandising
business that sells to those who use or consume the
goods
 wholesale merchandising business: a business
that buys and resells merchandise to retail
merchandising businesses
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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Business Structures
 corporation: an organization with the legal rights of
a person and which many persons may own
 share of stock: each unit of ownership in a
corporation
 capital stock: total shares of ownership in a
corporation
 stockholder: an owner of one or more shares of a
corporation
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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Using Special Journals
 special journal: a journal used to record only one
kind of transaction
1. Purchase Journal- for all purchases of merchandise on
account
2. Cash Payment Journal- for all cash payments
3. Sales Journal- for all sales of merchandise on account
4. Cash Receipts Journal- for all cash receipts
5. General Journal- for all other transactions
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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PURCHASING MERCHANDISE
page 236
 cost of merchandise: the price a business pays for goods it
purchases to sell
 markup: the amount added to the cost of merchandise to establish the
selling price. Only markup increases CAPITAL
 vendor: a business from which merchandise is purchased or supplies
or other assets are bought
*Revenue earned from the
sale of merchandise
includes both the cost of
merch. and markup*
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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PURCHASES ON ACCOUNT
page 236
 purchase on account: a transaction in which the
merchandise purchased is to be paid for later
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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PURCHASES JOURNAL
page 237
 purchases journal: a special journal used to record
only purchases of merchandise on account
 special amount column: a journal amount column
headed with an account title
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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PURCHASE INVOICE- an invoice used as a source
document for recording a purchase on account transaction
page 238
1
4
2
3
1. Stamp the date received and
purchase invoice number.
3. Initials of the person who
checked the invoice.
2. Place a check mark by each amount.
4. Review the vendor’s term of sale.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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Purchase Invoice continued…
 terms of sale: an agreement between a buyer and a
seller about payment for merchandise
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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PURCHASING MERCHANDISE ON
ACCOUNT
page 239
November 2. Purchased merchandise on account from Crown
Distributing, $2,039.00. Purchase Invoice No. 83.
2
1
1.
2.
3.
4.
3
4
Write the date.
Write the vendor name.
Write the purchase invoice number.
Write the amount of the invoice.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1
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TOTALING AND RULING A PURCHASES
JOURNAL
page 240
1
4
3
5
2
1. 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.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 9-1
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TERMS REVIEW
 merchandise
 merchandising business
 retail merchandising
business
 wholesale
merchandising business
 corporation
 share of stock
 capital stock
 stockholder
page 241









special journal
cost of merchandise
markup
vendor
purchase on account
purchases journal
special amount column
purchase invoice
terms of sale
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-1