The general ledger of Sparkling Lake Sparkling Lake Golf Shop includes the following selected accounts, along with their account numbers:

The general ledger of Sparkling Lake Golf Shop includes the following selected​ accounts, along with their account​ numbers:

Transactions in December that affected purchases and cash payments follow.

 

1.	Sparkling Lake Golf Shop records purchase returns in the general journal. Use the appropriate journal to record the transactions in a purchases​ journal, a cash payments journal​ (omit the Check No.​ column), and a general journal. The company uses the perpetual inventory system.
2.	Total each column of the special journals. Show that total debits equal total credits in each special journal.
3.	Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals. ​(Assume all postings are made to the applicable​ ledgers.)

Requirements​ 1, 2, 3.

Sparkling Lake Golf Shop records purchase returns in the general journal. Use the appropriate journal to record the transactions in a purchases​ journal, a cash payments journal​ (omit the Check No.​ column), and a general journal. The company uses the perpetual inventory system. Total each column of the special journals. Show that total debits equal total credits in each special journal. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.

In a manual​ system, transactions are classified by type. It is inefficient to record all transactions in the general​ journal, so businesses use special journals. A special journal is an accounting journal designed to record a specific type of transaction. Sales on​ account, cash​ receipts, purchases on​ account, and cash payments are treated as four separate categories​ and, therefore, create the four special journals. For​ example:

•	Sales on account are recorded in a sales journal.
•	Cash receipts are recorded in a cash receipts journal.
•	Purchases of inventory and other assets on account are recorded in a purchases journal.
•	Cash payments are recorded in a cash payments journal.
•	Transactions that do not fit in any of the special​ journals, such as adjusting​ entries, are recorded in the general​ journal, which serves as the​ "journal of last​ resort."

In addition to special​ journals, an accounting information system also uses subsidiary ledgers. A subsidiary ledger holds individual accounts that support a general ledger account. There are two common subsidiary​ ledgers: accountsreceivable subsidiary ledger and accounts payable subsidiaryledger. Begin with the purchases journal. A merchandising business purchases merchandise inventory and other​ items, such as office​ supplies, equipment, and​ furniture, on account. The purchases journal handles these transactions plus other purchases incurred on account.

Cash purchases are not recorded in the purchases​ journal; instead, they are recorded in the cash payments journal. The purchases journal has special columns​ for:

• Credits to Accounts Payable

• Debits to Merchandise​ Inventory, Office​ Supplies, and Other Accounts

The Other Accounts DR columns are used for purchases on account of items other than merchandise inventory and office supplies. This business uses a perpetual inventory system. In a periodic inventory​ system, the Merchandise Inventory DR column would be replaced with a column titled Purchases DR.

Entries in the purchases journal are posted to the accounts payable subsidiary ledger and are also posted to the general ledger.

Enter the transactions and total the journal.

We can see from the transaction list that the transaction on Dec.

2 is a purchase of merchandise on account. Our entry will record the increase in inventory and associated accounts payable by entering the amount of the​ purchase, $4,800​, in the Accounts Payable CR column. The entry will also record the increase in inventory by recording the cost of the​ purchase, $4,800 in the Merchandise Inventory DR column. Purchases of office supplies will be recorded in the Office Supplies DR column and purchases that cannot be classified will be recorded in the Other Accounts DR column along with the applicable account name. Remember that a​ "T" entered in the Post. Ref. Column indicates that the transaction has been posted to the accounts payable subsidiary ledger. The first transaction has been recorded for you. Review the transaction list and record any other applicable transactions in the purchase journal now. ​(If a box is not used in the journal leave the box​ empty; do not select information and do not enter a zero. Abbreviation​ used: Supp.​ = Supplies. Select​ "T." in place of a check mark to reflect posting to a subsidiary​ ledger.)

 

Show how total debits equal total credits.

In the purchases journal there are three columns that represents debits and one column that represent a credit. Determine the total debits and total credits and remember that the total debits and total credits should be equal.

Now complete the cash payments journal.

Businesses make most cash payments by​ check, and all checks​ (and payments of​ cash) are recorded in the cash payments journal. This special journal is also called the check register and the cash disbursements

journal. The cash payments journal has two debit columnslong—one for Other Accounts and one for Accounts Payable. It has two credit columnslong—one

for Merchandise Inventory​ (for purchase​ discounts) and one for Cash. This special journal also has columns for the date and check number of each cash payment and the account debited.

Entries in the cash payments journal are posted to the accounts payable subsidiary ledger and are also posted to the general ledger.

Enter the transactions and total the journal.

On .Dec. 3, the company paid rent with cash. This entry will record the rent expense in the Other Accounts DR column and payment of cash in the Cash CR column. To identify the other​ account, we will select​ "Rent Expense" in the Account Credited column. The first transaction has been entered for you. Record the remaining transactions and total the journal. Remember that payments on accounts payable will be based on the net receivable due after any returns. Payments on account are entered in the Accounts Payable DR column and the Merchandise Inventory CR column​ (if a purchase discount was​ taken, as was the case on .Dec. 11, 21 and​ 31). Also, in these​ cases, the​ vendor's name will be entered into the​ "Account Debited" column.​ Finally, remember that a purchase of merchandise inventory with cash ( Dec. 13) will need to be recorded in the Other Accounts DR column because the transaction will require a debit to merchandise inventory. Complete the journal now. ​(If a box is not used in the journal leave the box​ empty; do not select information and do not enter a zero. Select​ "T." in place of a check mark to reflect posting to a subsidiary​ ledger.) 

Record the appropriate transactions in the general journal.

Sparkling Lake Golf Shop records purchase returns in the general journal. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry table. Select​ "T." in place of a check mark to reflect posting to a subsidiary​ ledger.)Special journals save time recording repetitive transactions. But some transactions​ don't fit a special journal. Examples include​depreciation, the expiration of prepaid​ insurance, and the accrual of salaries payable at the end of the period. Companies also use the general journal for sales returns and allowances and purchase returns and allowances. All accounting information systems need a general journal. The adjusting entries and the closing entries are recorded in the general​ journal, along with other nonroutine transactions. A manual accounting information system involves five​ journals: sales​ journal, cash receipts​ journal, purchases​ journal, cash payments​ journal, and the general journal.​ It's important to remember that transactions are recorded in either one of the special journals or in the general​ journal, but not both.

Dec. 10: Returned the equipment to Upper A minus 1 EquipmentA−1 Equipment.

It was damaged. To record the return of the equipment we must reduce the liability to the vendor​ (because it is no longer​ due) and the asset account​(because the equipment is no longer owned by

Sparkling Lake Golf​ Shop). We will do this by recording a debit of $6,900 to the applicable Accounts Payable account and credit of $6,900 to the Equipment account. Record the entry now.

 

26: Returned to Darling comma Inc.Darling, Inc. $1,500 of the merchandise inventory purchased on December 21. Similar to the previous​ entry, we must reduce the liability to the vendor and reduce the inventory account. We will do this by recording a debit of $1,500 to the applicable Accounts Payable account and credit of $1,500 to the Merchandise Inventory account. Record the entry now.

 

Thank you!