College Accounting
Chapter 7
Objective 4 – Use the sales journal, the cash receipts journal, and the accounts receivable ledger.
SPECIAL JOURNALS
S PECIAL JOURNALS IN A M ANUAL SYSTEM
What is a special journal? ____________________________________________________________________
__________________________________________________________________________________________
Fill in the chart with the five types of transactions, the related special journal, and the posting abbreviation
Transaction
Special Journal
Posting Abbreviation
What are the three main reasons we learned the manual system (even though most businesses have computerized
systems)?
1.
2.
3.
College Accounting
Chapter 7
THE SALES JOURNAL
What is entered in the sales journal? _____________________________________________________________________
Where are other assets other than inventory recorded? ______________________________________________________
For each sales journal transaction, the account enters:
1.
2.
3.
4.
POSTING TO THE GENERAL LEDGER
When do you post from the sales journal to the general ledger? _____________________
POSTING TO THE ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
What is a subsidiary ledger? __________________________________________________________________________
How are they arranged? ______________________________________________________________________
How often are the amounts in the sales journal posted to the subsidiary ledger? _________________________
What do you do after posting to the subsidiary ledger? ______________________________________________
Why? ______________________________________________________________________________________
JOURNAL REFERENCES IN THE LEDGERS
As you post to the ledgers, ___________________________________________________________ to show the source of the data.
See Exhibit 7-8
BALANCING THE LEDGERS
What does it mean to balance the Ledgers? ________________________________________________________________________________
________________________________________________________________________________________________________________________________
What is a control account? ____________________________________________________________
College Accounting
Chapter 7
USING DOCUMENTS AS JOURNALS
Give two examples of using documents as journals:
1.
2.
THE CASH RECEIPTS JOURNAL
(study Exhibit 7-9 page 365)
What’s in the Debits Column? __________________________________________________________________________
What’s in the Credits Column? __________________________________________________________________________
Where is Cost of Goods Sold (DB) & Inventory (CR) entered? ________________________________ _________________
In the cash receipts journal, as in all journals, total debits should ___________________________________________.
POSTING TO THE GENERAL LEDGER
How often are column totals posted? __________________________________
What do you do after posting? _____________________________________________________________________
Where do the account numbers appear? ____________________________________
What column total is NOT posted? ________________________________________
POSTING TO THE SUBSIDIARY LEDGER
How often do you post amounts from the cash receipts journal to the accounts receivable ledger? ___________________
What are these postings? ___________________________
BALANCING THE LEDGERS
What must balance? _________________________________________________________________