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Accounting Chapter 3 Journalizing Transactions Kayla Wegley.

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Presentation on theme: "Accounting Chapter 3 Journalizing Transactions Kayla Wegley."— Presentation transcript:

1 Accounting Chapter 3 Journalizing Transactions Kayla Wegley

2 Basic Terms Journal: A form for recording transactions in chronological order Journalizing: Recording transactions Special Amount Column: Account with a heading in the journal General Amount Column: Account without a heading in the journal Source document: Business paper from which information is obtained for an entry Proving cash: Determining that the amount of cash agrees with the accounting records

3 Types of Source Documents Check Memorandum Sales Invoice Receipt

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 name Source document is a receipt Credit to general, debit to cash DebitCredit

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 cash Purchases made on account are journalized only in the general column because no cash is leaving the business DebitCredit

7 Journalizing Sales Journalizing 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 Column DebitCredit Sales

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 Sales Expenses are debited to general, and credited to cash Drawing is debited to general, and credited to cash DebitCredit Sales

9 Proving the Journal To prove a journal page, debits and credits must be verified to be equal Each 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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