Lesson 5: During this class we will take up the problem 13-3 which we completed last day.
Objectives:
Once we have taken up last day's problem, we will then explore Topic #2 of Chapter 13 - journalizing and posting cost of goods sold transactions.
The primary focus of this topic is the Purchases Journal (page 540) and the Columnar Purchases Journal (pages 544-545) which we use to record credit purchases along with their associated entries to the GST payable account.
In addition, we will analyze how entries to the Transportation-In account, as well as the Purchases Returns and Allowance account, are to be recorded within the General Journal.
| Purchases Journal | ||||||||
Date | Accounts Credited | Invoice # | Invoice | Terms | P.R. | Accounts | GST | Purchases |
| May 1 | MacFarlane Ltd. | SI1295 | 05/13/-- | 2/10, n/45 |  | 1,070.00 | 70.00 | 1,000.00 |
| May 12 | Flora Co. | 95-LK17 | 05/13/-- | 2/15, n/60 | | 2,140.00 | 140.00 | 2,000.00 |
| May 24 | Plant Corp. | 152 | 05/13/-- | 3/10, n/30 | | 491.08 | 32.13 | 458.95 |
| May 31 | 3,701.08 | 242.13 | 3,458.95 | |||||
The Purchases Journal is used only for credit purchases. Cash purchases, as well as payments made on the accounts outlined above, are recorded within the Cash Payments Journal.
At the end of the month, the amounts we still owe to our creditors are noted within a Schedule of Accounts Payable.
Method of Instruction and Evaluation:
After a socratic lecture on the above topics, students will complete Problem 13-5 on page 549.
Reference: