In this question the three journals we are to choose from are purchases journal, cash payments journal, and general journal. Though theyre are other special journals, this question focuses on those three. The book defines purchases journal as purchases made on account (cash purchases would be recorded in the cash payments journal). It defines the cash payments journal as all transactions that involve the payment of cash. The general journal can be used for entries that do not fit into any of the special journals.

EX 5-4 Identify journals Assuming the use of a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded: a. Payment of six months' rent in advance b. Purchase of an office computer on account. c. Purchase of office supplies on account. d. Adjustment to record depreciation at the end of the month. e. Adjustment to record accrued salaries at the end of the period. f Purchase of services on account. g. Adjustment to prepaid rent at the end of the month. h. Purchase of office equipment for cash. i. Adjustment to prepaid insurance at the end of the month. j. Purchase of office supplies for cash. k. Advance payment of a one-year fire insurance policy on the office. 08J.2