Chapter 9 - Cash receipts, cash payments, and banking procedures. After reading this chapter, you should be able to: Record cash receipts in a cash receipts journal, account for cash short or over, post from the cash receipts journal to subsidiary and general ledgers, record cash payments in a cash payments journal, post from the cash payments journal to subsidiary and general ledgers,. | 1- McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Cash Receipts, Cash Payments, and Banking Procedures Section 1: Cash Receipts Chapter 9 Section Objectives Record cash receipts in a cash receipts journal. Account for cash short or over. Post from the cash receipts journal to subsidiary and general ledgers. CASH RECEIPTS JOURNAL PAGE 1 Debits to Cash The cash receipts journal has separate columns for accounts that are frequently used Record cash receipts in a cash receipts journal Objective 1 Occasionally errors occur when making change. When errors happen, the cash in the cash register is either more or less than the cash listed on the audit tape. Objective 2 Account for Cash Short or Over On July 31 Maxx-Out Sporting Goods accepted a six-month promissory note from Stacee Fairley, who owed $800 on account. Promissory Notes Interest rate = 9% per year Rate for six-month period = (9%) ÷ 2 = Interest amount = $800 x = $36 Total | 1- McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Cash Receipts, Cash Payments, and Banking Procedures Section 1: Cash Receipts Chapter 9 Section Objectives Record cash receipts in a cash receipts journal. Account for cash short or over. Post from the cash receipts journal to subsidiary and general ledgers. CASH RECEIPTS JOURNAL PAGE 1 Debits to Cash The cash receipts journal has separate columns for accounts that are frequently used Record cash receipts in a cash receipts journal Objective 1 Occasionally errors occur when making change. When errors happen, the cash in the cash register is either more or less than the cash listed on the audit tape. Objective 2 Account for Cash Short or Over On July 31 Maxx-Out Sporting Goods accepted a six-month promissory note from Stacee Fairley, who owed $800 on account. Promissory Notes Interest rate = 9% per year Rate for six-month period = (9%) ÷ 2 = Interest amount = $800 x = $36 Total amount with interest = $800 + $36 = $836 Amount owed = $800 The note and the interest are recorded in the Other Accounts Credit section Cash Receipts, Cash Payments, and Banking Procedures Section 2: Cash Payments Chapter 9 Section Objectives Record cash payments in a cash payments journal. Post from the cash payments journal to subsidiary and general ledgers. Demonstrate a knowledge of procedures for a petty cash fund. Demonstrate a knowledge of internal control routines for cash. 2013 Jan. 3 111 January rent Rent Expense The credit is entered in the Cash Credit column The account name and amount are entered in the Other Accounts Debit section Objective 4 Recording in a cash payments journal The “CP1” indicates that the entry is recorded on page 1 of the cash payments journal ACCOUNT Rent Expense ACCOUNT NO. 634 DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF. DEBIT CREDIT 2013 Jan. 3 CP1 CASH PAYMENTS JOURNAL PAGE 1 ACCOUNTS PURCH. DATE CK. EXPLANATION
