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

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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

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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

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LESSON 9-1

PURCHASES JOURNALPURCHASES JOURNAL page 237

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LESSON 9-1

PURCHASING MERCHANDISEPURCHASING MERCHANDISE page 236

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LESSON 9-1

PURCHASES ON ACCOUNTPURCHASES ON ACCOUNT page 236

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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.

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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.

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9-1 Work Together (Page 241)9-1 Work Together (Page 241)

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LESSON 9-1