Question

Read each transaction and identify the appropriate journal that it should be recorded in:

1. Owner withdrew supplies
2. Sale made on account
3. Payment to vendor on account
4. Payment received from customer on account
5. Purchases on account
6. Adjusting journal entry for supplies used
7. Owner withdrew cash
8. Company borrows money from bank
9. Record monthly depreciation
10. Close revenue accounts at month end

Answer 1

Identification of Appropriate Journals for Transactions:

Transaction Appropriate Journal

1. Owner withdrew supplies General Journal

2. Sale made on account Sales Journal

3. Payment to vendor on account Cash Payment Journal

4. Payment received from customer on account Cash Receipts Journal

5. Purchases on account Purchases Journal

6. Adjusting journal entry for supplies used Adjusting Journal

7. Owner withdrew cash Cash Payment Journal

8. Company borrows money from bank Cash Receipts Journal

9. Record monthly depreciation Adjusting Journal

10. Close revenue accounts at month end Closing Journal

Step-by-step explanation:

General Journal: This journal can be used to record all kinds of transactions.

Adjusting Journal: This journal is used for making adjustments to the accounts in order to ensure full compliance with accrual accounting principle.

Closing Journal: This is used to close temporary accounts to permanent accounts at the end of accounting period.

Specialized Journals: These include Sales Journal, Purchases Journal, Cash Receipts Journal, and Cash Payments Journal.