The Big Picture (Logic & Purpose)
Accountants value these two things above all when designing a journal system.
What are efficiency and accuracy?
In a Cash Receipts Journal, this account is always debited.
What is Cash
This is the source document sent by a vendor to a buyer for a credit purchase.
What is a Purchase Invoice?
You pay $380 for the monthly utility bill with a check.
What is the Cash Payments Journal?
Sydney Sweeney and Glen Powell star together in what 2023 romantic comedy?
Anyone but you
These are the three main problems with using a General Journal for every transaction.
What are repeating the same entries, taking more time, and increasing errors?
In a Cash Payments Journal, this account is always credited.
What is Cash?
These are at least three of the five key pieces of information found on a Purchase Invoice.
What are vendor name, date, items purchased, total amount owed, or credit terms?
You sell $1,500 of merchandise on account to a local school.
What is the Sales Journal?
This actor notably starred in the TV sitcoms “How I Met Your Mother” and “Doogie Howser, M.D.”
Neil Patrick Harris
Special journals are specifically designed to handle these types of transactions.
What are frequent, similar, and repetitive transactions?
This column is used for any transaction that does not have its own specialized column in a receipt or payment journal.
What is the "Other" or "General" column?
In the Cash Receipts Journal, the reference code "T55" stands for this.
What is Tape 55 (Terminal Tape)?
You buy $1,200 of new store equipment on account.
What is the Purchases Journal?
What is Bad Bunny's hit song with artist Drake?
Mia
This is the primary reason businesses that buy merchandise for resale use special journals.
To help reduce time, errors, and repetition.
This is the only type of purchase that should be recorded in the "Purchases Debit" column.
What are credit purchases of merchandise for resale?
This document is the source for recording a sale of merchandise on account.
Sales slip
You record $700 in bankcard sales and $42 in sales tax.
What is the Cash Receipts Journal?
At the 2025 Met Gala, Bad Bunny wore an item of clothing that is synonymous with Puerto Rico. What was it?
A hat made of straw
Instead of posting every single transaction, special journals allow you to do this at the end of the month to the General Ledger.
What is post the totals from the specialized columns?
To record a rent payment in the Cash Payments Journal, you must place the amount in the "Cash Cr" column and this other column.
What is the "Other" (Debit) column?
When an owner invests cash, or a business receives interest, these are the documents typically used as references in the journal.
What are receipts
You pay a supplier $700 to reduce the amount you owe them for a previous purchase.
What is the Cash Payments Journal?
In 2023, Bad Bunny became the first solo Latino and Spanish-speaking artist to headline which festival?
Coachella