Greenleaf Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the cash payments journal. June 3 Issued Check No. 380 to Skipp Corp. to buy office supplies for $615.
5 Purchased merchandise for $7,000 on credit from Buck Co., terms n/15.
20 Issued Check No. 381 for $7,000 to Buck Co. to pay for the purchase of June 5.
23 Paid salary of $8,600 to T. Bourne by issuing Check No. 382.
26 Issued Check No. 383 for $11,750 to pay off a note payable to UT Bank.
Date Ck. No Payee Account debited Cash Inventory Other Accounts
Cr. Cr. accounts payable
Dr. Dr.

Date        Description                           Debit        Credit

June 3   Office Supplies                       $615

              Cash Account                                         $615

To record the issue of check No. 380 to Skipp Corp for office supplies.

June 20  Accounts Payable (Buck Co.) $7,000

               Cash Account                                      $7,000

To record the issue of check No. 381 to Buck Co for inventory.

June 23  Salary (T. Bourne)                $8,600

               Cash Account                                    $8,600

To record the issue of check No. 382 for salary to T. Bourne.

June 26  Note Payable (UT Bank)     $11,750

               Cash Account                                    $11,750

To record the issue of check No. 383 to pay off a note payable.

Explanation:

A cash payments journal is one of the specialized journals that can be used to initiate the recording of a business transaction, especially with regard to cash payments.  Like all journals, it shows the account to be debited and the one to be credited in the general ledger.

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