The Fats Domino Company uses a two-column (all-purpose) general journal (GJ), a

Question

The Fats Domino Company uses a two-column (all-purpose) general journal (GJ), a cash recipts journal (CRJ), a cash payments journal (CPJ), a sales journal (SJ) and a purchases journal (PJ). For each example given below, indicate which journal the following transactions should be recorded in.

a) Initial Investment of cash by Fats Domino into the business

b) Paymentof three months rent in advance

c) Receipt of cash from sale of office equipmet

d) Fats Domino provided services and received cash

e) Adjustment to prepaid rent at the end of the current period

f) Purchase of office supplies for cash

g) Closing of the drawing account at the end of the current period

h) Fats Domino provided services on account

i) Purchase of an office computer on account

j) Receipt of cash on account from a customer

Explanation / Answer

a) Initial Investment of cash by Fats Domino into the business    a cash receipts journal (CRJ)

b) Paymentof three months rent in advance                                  a cash payments journal (CPJ)

c) Receipt of cash from sale of office equipmet                             a cash receipts journal (CRJ)

d) Fats Domino provided services and received cash                   a cash receipts journal (CRJ)

e) Adjustment to prepaid rent at the end of the current period      general journal (GJ),

f) Purchase of office supplies for cash                                           a cash payments journal (CPJ)

g) Closing of the drawing account at the end of the current period general journal (GJ),

h) Fats Domino provided services on account                               general journal (GJ),

i) Purchase of an office computer on account                                 general journal (GJ),

j) Receipt of cash on account from a customer                               a cash receipts journal (CRJ)

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