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Recording Transactions in a General Journal

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Presentation on theme: "Recording Transactions in a General Journal"— Presentation transcript:

1 Recording Transactions in a General Journal
Chapter 6

2 The Steps of the Accounting Cycle
Collect and verify source documents Analyze each transaction Journalize each transaction Post to ledger Prepare a trial balance Prepare a worksheet Prepare financial statements Journalize and post closing entries Prepare a post-closing trial balance Pg 132

3 Step 1: Collect and Verify Source Documents
A source document the paper evidence of the transaction. Invoice Receipt Memorandum Check stub Pg 133

4 Step 2: Analyzing Business Transactions
Analyze the source document to Determine the affected Determine debits and credits

5 Step 3: Recording Business Transactions in a Journal
Journal – a record of the transactions of a business kept in chronological order Journalizing – the process of recording business transactions in a journal

6 The Accounting Period An accounting period of 12 months is called a fiscal year. If the fiscal year for a business begins on January 1 and ends on December 31, it is called a calendar year accounting period. Some businesses have different fiscal years. A school district runs July 1 through June 30 and department stores often run February 1 through January 31. Pg 134

7 Recording a General Journal Entry
General Journal – an all purpose journal in which all of the transactions of a business may be recorded.

8 Transaction 1

9 Transaction 2

10 Transaction 3

11 Transaction 4

12 Transaction 5

13 Transaction 6

14 Transaction 7

15 Transaction 8

16 Transaction 9

17 Transaction 10

18 Transaction 11

19 Transaction 12

20 Transaction 13

21 Transaction 14

22 Making Journal Corrections

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