There are 3 parts to this assignment, namely:

A. Journalize entries in Special and General Journals

B. Total Journals (except for General Journal)

C. Complete Posting References

Your assignment must be completed using this MS Excel provided and submitted in the Activities - Assignments area of our Brightspace course.

Your completed assignment must be namedlastnamefirstnameACC2207assignment3

Before you start the assignment, we want to make sure that everyone understands the main purpose of special journals and therefore we are pleased to provide the following overview and summary review notes of special journals:

Overview of Special Journals:

The reason to use special journals in the day to day bookkeeping is to make the process more efficient by:

- recording each entry in one journal, the journal that best captures the details of the transaction , for example sales of product for cash would be recorded in the CASH RECEIPTS JOURNAL, or purchase or supplies on account would be recorded in the PURCHASE JOURNAL

- reduces the amount of posting into the general ledger, using special journals results in posting of totals and not individual amounts.

Please be sure that each entry in this assignment is posted inONE JOURNAL ONLY.(Use the information that you have learned in the past 4 lessons to help you place your entries into the correct journal).

Posting References have a purpose, be sure you understand where the number will be posted and then use the appropriate reference.

Summary review notes of Special Journals

(a) What type of transactions are recorded to which journal?

General Journal -the only transactions recorded in this journal are as follows:

Return of goods to a supplier

Return of goods by a customer

Sales Journal - transactions recorded in this journal include one type ONLY -goods sold on account to a customer

Cash Receipts Journal- transactions recorded in this journal include all entries that include a receipt of cash. It does not matter what the receipt of cash is for, if cash is received then the transaction gets recorded in this journal.

Purchases Journal - transactions recorded in this journal include all entries that record the purchase of any type of asset, expense, or inventory on account.If a credit to accounts payable is recorded then the transactions gets recorded in this journal.

Cash Payments Journal- transactions recorded in the journalinclude all entries that require a disbursement or payment of cash. The payment of cash can be on account, for assets such as inventory, or day to day expenses.

The most important point to remember: Each transaction is recorded in ONLY one of the above journals. If you record a transaction in more than one journal then you have incorrectly recorded the entry twice.

The rules of double entry accounting still apply to each entry (ALCREW). Debits = Credits always

(b) Why do we have to total each column of the special journals?

Totals of the journals - A total must be calculated for each column in all journals except the General Journal. The totals must balance, total of the debit columns must equal the total of he credit column.

(c) How and why are posting references used in the special journals?

Posting References

To more clearly summarize the above, any of the first three posting references listed above ("checkmark", P or T), are (or can be) used to denote that a row of the journal has been posted to subledger.

For consistency, in practice generally ONLY ONE OF THE THREE are used by each business.

In our course, students will experience all three options as follows:

The texbook ilustrates with the use of the "checkmark"

For MyLab Practice and quizzes, the drop down menus/lists offer only the "T" option

For this Assignment # 3, the drop down menus/lists offer only the "P" option

Posting References are required on each row and each column total.

ACC2207 BOOKKEEPING

Assignment 3

Below are the transactions for December 2024, for Sarasota Company. Owner, Scott Irwin

has asked you the office manager to record the transactions into the correct journal.

Transactions:

6

Owner made a cash investment into the company $26,000

7

Purchased merchandise on account from Racks Co., invoice No. 743. Terms 2/10, n/30, $700.

8

Paid this months' rent, $920 to the landlord Shifty Rentals Inc., cheque 202

9

Sold $2,500 of merchandise on account to H. Holand, sales invoice No. 1, terms 1/10, n/30. Cost of goods sold $1,400

10

Sold $1,200 of merchandise on account to T. Traer, sales invoice No. 2, terms 1/10, n/30. Cost of Goods Sold $550.

13

Issued debit memorandum No. 101 to Racks Co. for damaged goods re: invoice No. 743, $ 300.

14

Bought supplies on account from Staples for $100, Invoice # 325, term n/30.

15

Paid salaries, $700, cheque 203

17

Sent cheque No. 204 to Racks Co. for invoice No. 743 less the damaged goods returned earlier in the month and less any applicable early payment discount.

18

Received cash from H. Holand in payment for transaction earlier this month less any applicable early payment discount.

22

Issued credit memo No. 1 to T. Traer for $100 for merchandise returned from Mar 5 sale on account. Cost of goods returned $25.

29

Sold $500 merchandise for cash to Jones Co., sales invoice No. 3. Cost of goods sold $250.

Chart of Accounts

Assets

Revenue

101

Cash

400

Sales

104

Accounts Receivable

402

Sales Discounts

110

Inventory

404

Sales Returns and Allowances

120

Computer Equipment

125

Vehicle

Expenses

Liabilities

500

Advertising Expense

505

Rent Expense

204

Accounts Payable

510

Salaries Expense

515

Supplies Expense

Owner's Equity

518

Cost of Goods Sold

525

Telephone Expense

300

Scott Irwin, Withdrawals

301

Scott Irwin, Capital

Required:

(a)

Journalize the transactions for the month of December in the correct journal.

- The journals required are found on the following worksheets, General Journal,

Sales Journal, Cash Receipts Journal, Purchases Journal

and Cash Payments Journal

- Explanations are required only for each entry in the General Journal

(b)

Total each column of each journal as required, except the General Journal.

(c)

Provide Posting references as if each entry had been posted. The Chart

of Accounts will assist with this part of posting to general ledger accounts.

- Use an X if the amount should not be posted and a P (instead of a check mark or a T)

if the amount should be posted to subledger account.