Concept explainers
Identifying special journals
Use the following abbreviations to indicate the journal in which you would record transactions a through n.
J = General journal
S = Sales journal
CR = Cash receipts journal
P = Purchases journal
CP = Cash payments journal
Transactions:
___ a. Cash purchase of merchandise inventory
___ b. Collection of dividend revenue earned on an investment
___ c. Prepayment of insurance
___ d. Borrowing money on a long-term note payable
___ c. Purchase of equipment on account
___ f. Cost of goods sold along with a credit sale
___ g. Cash sale of merchandise inventory
___ h. Payment of rent
___ i. Depreciation of computer equipment
___ j. Purchase of merchandise inventory on account
___ k. Collection of
___ 1. Expiration of prepaid insurance
___ m. Sale on account
___ n. Payment on account
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