LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
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LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal
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Transcript of LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
LESSON 3-1Journals, Source Documents, and Recording Entries in a Journal
Journals and Journalizing • A form for recording transactions in chronological order is
called a journal.
• Recording transactions in a journal is called journalizing.
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General Journal
Information for each transaction recorded in a journal is called an entry.
A journal with two amount columns in which all kinds of entries can be recorded is called a general journal.
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A GENERAL JOURNAL
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page 57
General Journal • Accuracy • Chronological Record• Double-Entry Accounting• The recording of debit and credit parts of a transaction is called double-entry
accounting. In double-entry accounting, each transaction affects at least two accounts. Both the debit and credit parts are recorded, reflecting the dual effect of each transaction on the business’s records. Double-entry accounting assures that the debits equal the credits.
• Source Documents • A business paper from which information is obtained for a journal entry is called
a source document. • Each transaction is described by a source document that proves that the
transaction did occur.• Five types of source documents
• Checks• Sales Invoices• Receipts• Calculator Tapes• Memorandums
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Check-a business form ordering a bank to pay cash from a bank account
CHECKS
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Invoices-A form describing the goods or services sold, the quantity, and the price Sales Invoices-(sales ticket; sales slip) An invoice used as a source document for recording a sale on account
SALES INVOICES
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Other Documents • Receipts-A business form giving written acknowledgement for
cash received
• Memorandums-A form on which a brief message is written describing a transaction
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OTHER SOURCE DOCUMENTS
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memorandummemorandum
calculator tapecalculator tape
receiptreceipt
RECEIVED CASH FROM OWNER AS AN INVESTMENT
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2. Write the title of the account debited. Write the debit amount.
page 60
August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1.
1. Write the date in the Date column.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
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22 2233 33
PAID CASH FOR SUPPLIES
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August 3. Paid cash for supplies, $275.00. Check No. 1.
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1. Write the date in the Date column.
4. Write the source document number in the Doc. No. column.
3. Write the title of the account credited. Write the credit amount.
2. Write the title of the account debited. Write the debit amount.
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TERMS REVIEW• journal• journalizing• entry• general journal• double-entry accounting• source document
• check• invoice• sales invoice• receipt• memorandum L
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LESSON 3-2
Journalizing Buying Insurance, Buying on Account, and Paying on Account
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PAID CASH FOR INSURANCE page 63
August 4. Paid cash for insurance, $1,200.00. Check No. 2.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
1144
22223333
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BOUGHT SUPPLIES ON ACCOUNT
page 64
August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
11 442222
3333
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PAID CASH ON ACCOUNT page 65
August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
11 442222
3333
LESSON 3-3
Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account
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RECEIVED CASH FROM SALES
page 68
August 12. Received cash from sales, $295.00. Tape No. 12.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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SOLD SERVICES ON ACCOUNT
page 69
August 12. Sold services on account to Oakdale School, $350.00. Sales Invoice No. 1.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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PAID CASH FOR AN EXPENSE page 70
August 12. Paid cash for rent, $300.00. Check No. 4.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
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RECEIVED CASH ON ACCOUNT
page 71
August 18. Received cash on account from Oakdale School, $200.00. Receipt No. 2.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
4411
3333
2222
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PAID CASH TO OWNER FOR PERSONAL USE
page 72
August 18. Paid cash to owner for personal use, $125.00. Check No. 6.
1. Write the date in the Date column.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the credit amount.
4. Write the source document number in the Doc. No. column.
44113333
2222
LESSON 3-4
Starting a New Journal Page
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A COMPLETED JOURNAL PAGE
page 74
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STARTING A NEW GENERAL JOURNAL PAGE page 75
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STANDARD ACCOUNTING PRACTICES
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