ACCOUNTING AND SPECIAL JOURNALS

1. Identify which journal should be used to record each of the following transactions:

A. Adjusting entry to record depreciation: General journal. Adjusting entries are typically recorded in the
general journal as they involve changes to the accounts that are not recorded in other specialized
journals.

B. Purchase of baking equipment on credit: Purchases journal. The purchases journal is used to record
credit purchases of merchandise or assets.

C. Sale of merchandise on credit: Sales journal. The sales journal is used to record credit sales of
merchandise.

D. Sale of merchandise for cash: Cash receipts journal. The cash receipts journal is used to record all cash
received by the business, including sales made in cash.

E. Cash refund to a customer who returned a product that was purchased: Cash receipts journal. The
cash receipts journal would be used to record the cash refund to the customer.

F. Return of merchandise to a vendor that was damaged: Purchases journal. The purchases journal
would be used to record the return of damaged merchandise to the vendor.

G. Payment of property taxes: Cash disbursements journal. The cash disbursements journal is used to
record all cash payments made by the business, including payments for expenses like property taxes.

H. Purchase of a delivery van for cash: Cash disbursements journal. The cash disbursements journal
would be used to record the cash payment made for the delivery van.

I. Purchase of merchandise on credit: Purchases journal. The purchases journal would be used to record
the credit purchase of merchandise.

2. Explanation of how special journals can benefit accounting personnel:

Special journals, such as the sales journal, purchases journal, cash receipts journal, and cash
disbursements journal, provide several benefits to accounting personnel:

a) Efficiency: Special journals allow for the quick and streamlined recording of repetitive transactions.
Instead of recording each individual transaction in the general journal, specialized journals provide a
specific format tailored to common transactions, saving time and effort.

b) Organization: Special journals help in maintaining a well-organized accounting system. Transactions

are grouped by type, making it easier to locate and reference specific entries when needed.
c) Accuracy: With predefined columns for different types of transactions, special journals minimize the
risk of errors and improve accuracy in recording transactions. The consistent format reduces the
likelihood of data entry mistakes.

d) Analysis and Reporting: Special journals provide summarized information related to specific
transaction types, making it easier to analyze and generate reports. Accounting personnel can quickly
retrieve relevant data, such as sales figures or accounts payable, for decision-making and financial
reporting purposes.

3. Explanation of what I have learned about companies using special journals:

Through studying companies that use special journals, I have learned that the implementation of these
journals can significantly improve the efficiency and accuracy of the accounting process. Special journals
are particularly beneficial for businesses that engage in high-volume transactions of a similar nature,
such as retail stores or wholesalers.

Companies that use special journals effectively are more likely to have well-organized and systematic
accounting systems. By streamlining routine transactions, special journals free up time for accounting
personnel to focus on other critical tasks, such as financial analysis and interpretation.

Furthermore, the use of special journals facilitates the generation of meaningful reports and analysis.
Managers and decision-makers can access timely and accurate information, enabling them to make
informed decisions based on the company's financial performance.

4. The information covered in Unit 4 that interests me most and why:

The topic that interests me the most in Unit 4 is the part that deals with "Budgeting and Forecasting”
under the accounting systems and internal controls. Budgeting plays a crucial role in financial planning
and control within an organization. It involves estimating future revenues, expenses, and cash flows to
establish a roadmap for achieving financial goals.

I find this topic intriguing because effective budgeting enables businesses to allocate resources
efficiently, identify potential financial challenges, and plan for growth and expansion. It involves
analyzing historical data, market trends, and internal factors to project future financial performance.

Understanding budgeting and forecasting techniques empowers individuals in both personal and
professional settings. It helps in setting realistic goals, monitoring progress, and making informed
financial decisions.

In conclusion, the knowledge gained from Unit 4 on budgeting and forecasting provides valuable insights
into the financial management aspect of organizations, making it a relevant and significant topic for me.

REFERENCE
Franklin, M. Graybeal, P. & Cooper, D. (2020). Principles of accounting, volume 1: Financial accounting.
Open Stax Rice University.