how to use specialized journals, general ledger, and subsidiary ledger sheets to ... business owner purchased $200 product on account to be resold...what does that correctly look like, please?
To correctly record a business transaction where a business owner purchases a $200 product on account to be resold using specialized journals, general ledger, and subsidiary ledger sheets, follow these steps:
1. Identify the appropriate specialized journal: In this case, we will use the purchases journal. This journal is used to record all purchases made on account.
2. Open the purchases journal: Draw a table with appropriate columns such as Date, Invoice/Reference Number, Supplier Name, Account Debited, and Purchase Amount.
3. Record the transaction in the purchases journal: Enter the date of the purchase, the reference number (if available), the name of the supplier from whom the product was purchased, the account debited (usually a "Purchases" account or "Inventory" account), and the purchase amount of $200.
4. Post to the general ledger: Transfer the information recorded in the purchases journal to the corresponding general ledger account. In this case, debit the "Purchases" or "Inventory" account by $200.
5. Maintain subsidiary ledger: If you have a subsidiary ledger system, maintain a separate supplier ledger for each supplier. In this case, create a supplier ledger for the supplier from whom the product was purchased. Record the debit entry of $200 in the supplier's ledger.
It is important to note that the format and process may vary depending on the accounting system being used by the business. The above steps provide a general outline on how to appropriately record the transaction using specialized journals, general ledger, and subsidiary ledger sheets.