2 Basic TermsJournal: A form for recording transactions in chronological orderJournalizing: Recording transactionsSpecial Amount Column: Account with a heading in the journalGeneral Amount Column: Account without a heading in the journalSource document: Business paper from which information is obtained for an entryProving cash: Determining that the amount of cash agrees with the accounting records
3 Types of Source Documents CheckMemorandumSales InvoiceReceipt
4 Journalizing Transactions Each transaction must be journalized with the date, Account Title, Document number, and a credit and debit entry to a general column, and a cash or sales column.
5 Journalizing an Investment Account title is business owners nameSource document is a receiptCredit to general, debit to cashDebit CreditDebit Credit
6 Journalizing Purchases, On Account Purchases A purchase made with Cash is titled with the account to purchase was made to, debited in general, and credited in cashPurchases made on account are journalized only in the general column because no cash is leaving the businessDebit CreditDebit CreditDebit CreditDebit Credit
7 Journalizing SalesJournalizing Sales will utilize the Sales Credit column and the Cash Debit Column. Source document number will always be the day of the month. A check mark is used for the account title, and in the Post Reference ColumnDebit CreditSalesDebit Credit
8 Journalizing Selling Services on Account, Paying for Expenses, and Owner Withdrawals Services on account are titled with the business sold to, debited to general, and credited to SalesExpenses are debited to general, and credited to cashDrawing is debited to general, and credited to cashDebit CreditSalesDebit CreditDebit CreditDebit CreditDebit CreditDebit Credit
9 Proving the JournalTo prove a journal page, debits and credits must be verified to be equalEach column of journal
10 Ruling a Journal, and Beginning a New Page At the end of each journal page, each column must be totaled and double ruled underneath.Totals are labeled at the end of the new page “carried forward” and at the beginning of the new page “brought forward”At the end of the fiscal period, the last journal page is totaled in each column, and then double ruled
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