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  • Demonstration Problem G Bell A Fitness Enthusiast Buys An Existing Exercise Center Body Firm The

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The General Journal and the General Ledger DEMONSTRATION PROBLEM G. Bell a fitness enthusiast buys an existing exercise center Body Firm. The following chart of accounts now applies Assets 111 Cash 124 Land 126 Building 128 Equipment Liabilities 221 Accounts Payable 223 Mortgage Payable Revenue 411 Income from Services Expenses 511 Wages Expense 512 Utilities Expense 513 Advertising Expense 514 Repair Expense 519 Miscellaneous Expense Owner s Equ.

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The purchase ledger shows which purchases have been paid for and which purchases remain outstanding. A typical transaction entered into the purchase ledger will record an account payable, followed at a later date by a payment transaction that eliminates the account payable.

∎ 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. ∎ purchase invoice – an invoice used as a source document for recording a purchase on account transaction.

Answer and Explanation: The correct answer is Purchases Journal. The purchase journal is used to record all the purchase transactions of the business organization related to merchandise inventory or stock.

Write the journal page number. Write the credit amount. Write the new account balance. Write the account number in the Post. Ref. column of the journal.

A purchases journal is a special journal used to record any merchandise purchased on account. The entries in this journal are made based on the invoice received from the supplier on the purchase date. Other names used for the purchases journal are the purchases book, purchases daybook, and the credit purchases journal.

If it is a credit sale (also known as a sale on account), it is recorded in the sales journal. If it is a credit purchase (also known as a purchase on account), it is recorded in the purchases journal.

Answer and Explanation: The accountant enters the account number after the posting has been made to the ledger. This acts as a verification process. It represents that the amounts have been posted to the accurate ledger accounts.

The purchases journal lists all credit purchases of merchandise. Entries in this journal usually include the date of the entry, the name of the supplier, and the amount of the transaction.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232