Chapter B, Problem B.3SE

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

____ e. 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 accounts receivable

____ l. Expiration of prepaid insurance

____ m. Sale on account

____ n. Payment on account