Which journal summarizes all transactions involving the purchase of stock during a month on credit?

The Purchases Journal is specifically designed to record all transactions related to the purchase of merchandise or stock on credit over a given period, such as a month. This journal is crucial for businesses that frequently acquire inventory, as it helps streamline the tracking of credit purchases separate from cash transactions.

When purchases are made on credit, they do not immediately affect cash flow, and recording these transactions in the Purchases Journal allows a business to maintain clarity on amounts owed to suppliers. This level of specialization not only aids in financial reporting but also in managing accounts payable, tracking inventory levels, and preparing for financial statements.

In contrast, other journals serve different functions; for instance, the Sales Journal records credit sales to customers, the Expenses Journal captures all types of expenses incurred (not limited to stock purchases), while the Cash Payments Journal tracks cash outflows, including cash purchases and payments to suppliers. These other journals, though necessary for comprehensive accounting, do not focus solely on credit stock purchases, making the Purchases Journal the correct choice for this question.