1. Journals, Source Documents, and Recording Entries in a Journal
LESSON 3-1
4/19/2017
LESSON 3-1
Journals, Source Documents, and Recording Entries in a Journal
GREEN

2. THE SAME BUT DIFFERENT
page 62
Still analyze transactions into debit and credit parts
Journal
A form for recording transactions in chronological order
Keeps a permanent record of the transaction
Various journals are used
Nature of business determines what type is used
Journalizing
Recording transactions in a journal
LESSON 3-1

3. USING A JOURNAL Entry General journal
Information for each transaction recorded in a journal
General journal
A journal with two amount columns in which all kinds of entries can be recorded
LESSON 3-1

4. A GENERAL JOURNAL
page 57
LESSON 3-1

5. ACCURACY
Information for debit and credit parts is recorded in one place
Information can be verified by comparing data in the entry with the transaction data
LESSON 3-1

6. CHRONOLGICAL RECORD Transactions are recorded in order by date
Information is easy to locate because it is all in one place
LESSON 3-1

7. DOUBLE-ENTRY ACCOUNTING
The recording of debit and credit parts of a transaction
Each transaction must affect at least two accounts
Both parts (debit and credit) are recorded
Assures that debits equal credits
LESSON 3-1

8. SOURCE DOCUMENTS
A business paper from which information is obtained for a journal entry
Accounting concept: Objective evidence
A source document must go with every transaction as proof that it occurred
Five source documents
Checks, sales invoices, receipts, calculator tapes and memorandums
LESSON 3-1

9. CHECK A business form ordering a bank to pay cash from a bank account
page 58
A business form ordering a bank to pay cash from a bank account
Check #1 is abbreviated C1
LESSON 3-1

10. SALES INVOICES Invoice Sales invoice
page 58
Invoice
A form describing the goods or services sold, the quantity, and the price
Sales invoice
An invoice used for recording a sale on account
Sales invoices 12 is abbreviated S12
LESSON 3-1

11. LESSON 3-1
4/19/2017
RECEIPT
page 59
A business form giving written acknowledgement for cash received
Used when cash is received for any transaction other than sales
Receipt #45 is abbreviated R45
receipt
LESSON 3-1
GREEN

12. CALCULATOR TAPE Businesses collect cash at the time of sales
At the end of the day, businesses print daily sales through cash registers or electronic calculators showing the amount of cash received
Total sales from this tape are the source
document for the sales
Saves the business time and space
T12 is used for the calculator tape on
twelfth of the month
calculator tape
LESSON 3-1

13. MEMORANDUM
A form on which a brief message is written describing a transaction
Used when no other source document is prepared for a transaction or when additional information is needed about a transaction
Memorandum #36 is abbreviated M36
memorandum
LESSON 3-1

14. ENTERING TRANSACTIONS INTO A JOURNAL
Follow the thinking that was discussed in chapters 1 & 2
Each transaction entry consists of four parts:
Date
Debit
Credit
Source document
LESSON 3-1

15. RECEIVED CASH FROM OWNER AS AN INVESTMENT
page 60
August 1. Received cash from owner as an investment, $5, Receipt No. 1. 2 1 3 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.
LESSON 3-1

16. PAID CASH FOR SUPPLIES
page 61
August 3. Paid cash for supplies, $ Check No. 1. 2 1 3 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.
LESSON 3-1