1. Chapter 4 - Journalizing Transactions
Accounting I
Chapter 4 - Journalizing Transactions

2. TERMS REVIEW journal journalizing special amount column
general amount column
entry
double-entry accounting
source document
check
invoice
sales invoice
receipt
memorandum
Lesson 4-1, page 71

3. TERMS REVIEW
Journal
A form for recording transactions in chronological order.
Lesson 4-1, page 64

4. TERMS REVIEW Journalizing Recording transactions in a journal.
Lesson 4-1, page 64

5. TERMS REVIEW Special Amount Column
A journal amount column headed with an account title.
Lesson 4-1, page 66

6. TERMS REVIEW General Amount Column
A journal amount column that is not headed with an account title.
Lesson 4-1, page 64

7. TERMS REVIEW
Entry
Information for each transaction recorded in a journal.
Lesson 4-1, page 66

8. TERMS REVIEW Double-Entry Accounting
The recording of debit & credit parts of a transaction. Each transaction affect at least 2 accounts.
Lesson 4-1, page 66

9. TERMS REVIEW Source Document
A business paper from which information is obtained for a journal entry.
Lesson 4-1, page 66

10. TERMS REVIEW Objective Evidence
A source document is prepared for each transaction.
Lesson 4-1, page 66

11. TERMS REVIEW
Check
A business form ordering a bank to pay cash from a bank account.
Lesson 4-1, page 67

12. TERMS REVIEW
Invoice
A form describing the goods or services sold, the quantity, and the price.
Lesson 4-1, page 67

13. TERMS REVIEW Sales Invoice
An invoice used as a source document for recording a sale on account.
Lesson 4-1, page 67

14. TERMS REVIEW Memorandum (Memo)
A form on which a brief message is written describing a transaction.
Lesson 4-1, page 68

15. A FIVE-COLUMN JOURNAL
Lesson 4-1, page 66

16. CHECKS
Lesson 4-1, page 67

17. SALES INVOICES
Lesson 4-1, page 67

18. OTHER SOURCE DOCUMENTS
Lesson 4-1, page 68

19. RECEIVED CASH FROM OWNER AS AN INVESTMENT
August 1. Received cash from owner as an investment, $10, Receipt No. 1.
Lesson 4-1, page 69

20. RECEIVED CASH FROM OWNER AS AN INVESTMENT
August 1. Received cash from owner as an investment, $10, Receipt No. 1.
Barbara Treviño, Capital
Cash
1. Which accounts are affected?
Cash
Barbara Treviño, Capital
Debit
Normal Balance
10,000.00
2. How is each account classified?
Cash is an asset account.
Barbara Treviño, Capital is an owner’s equity account. 
Credit
Normal Balance
3. How is each classification changed?
Assets are increased.
Owner’s equity is increased.
10,000.00 
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Owner’s equity accounts increase on the credit side.
Lesson 4-1, page 69

21. RECEIVED CASH FROM OWNER AS AN INVESTMENT
August 1. Received cash from owner as an investment, $10, Receipt No. 1. 1 2 4 3
1. Write the date.
2. Debit Cash.
3. Credit Barbara Treviño, Capital.
4. Write the source document number.
Lesson 4-1, page 69

22. PAID CASH FOR SUPPLIES 1 2 4 3 1. Write the date. 2. Debit Supplies.
3. Credit Cash.
4. Write the source document number.
Lesson 4-1, page 70

23. Work Together &
On Your Own – Page 71

24. PAID CASH FOR INSURANCE
August 4. Paid cash for insurance, $1, Check No. 2.
Cash
Prepaid Insurance
1. Which accounts are affected?
Prepaid Insurance
Cash
Debit
Normal Balance
1,200.00
2. How is each account classified?
Prepaid Insurance is as asset account.
Cash is as asset account. 
3. How is each classification changed?
Assets are increased.
Assets are decreased.
Debit
Normal Balance
1,200.00 
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
Lesson 4-2, page 72

25. PAID CASH FOR INSURANCE (continued)
August 4. Paid cash for insurance, $1, Check No. 2. 2 3 1 4
1. Write the date.
2. Debit Prepaid Insurance.
3. Credit Cash.
4. Write the source document number.
Lesson 4-2, page 72

26. PAID CASH ON ACCOUNT
August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3.
Cash
Accts. Pay.—Ling Music Supplies
1. Which accounts are affected?
Accounts Payable—Ling Music Supplies
Cash
1,360.00
Credit
Normal Balance 
2. How is each account classified?
Accts. Pay.—Ling Music Supplies is a liability account.
Cash is an asset account.
3. How is each classification changed?
Liabilities are decreased.
Assets are decreased.
Debit
Normal Balance
1,360.00 
4. How is each amount entered in the accounts?
Liabilities decrease on the debit side.
Assets decrease on the credit side.
Lesson 4-2, page 74

27. PAID CASH ON ACCOUNT (continued)
August 11. Paid cash on account to Ling Music Supplies, $1,360.00, Check No. 3. 2 3 1 4
1. Write the date.
2. Debit Accounts Payable—Ling Music Supplies.
3. Credit Cash.
4. Write the source document number.
Lesson 4-2, page 74

28. Work Together &
On Your Own – Page 75

29. RECEIVED CASH FROM SALES
August 12. Received cash from sales, $ Tape No. 12.
Sales
Cash
1. Which accounts are affected?
Cash
Sales
Debit
Normal Balance
325.00
2. How is each account classified?
Cash is as asset account.
Sales is as revenue account. 
3. How is each classification changed?
Assets are increased.
Revenues are increased.
Credit
Normal Balance
325.00 
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Revenues increase on the credit side.
Lesson 4-3, page 76

30. RECEIVED CASH FROM SALES (continued)
August 12. Received cash from sales, $ Tape No. 12. 3 1 4 2
1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
Lesson 4-3, page 76

31. SOLD SERVICES ON ACCOUNT
August 12. Sold services on account to Kids Time, $ Sales Invoice No. 1.
Sales
Accounts Rec.—Kids Time
1. Which accounts are affected?
Accounts Receivable—Kids Time
Sales
Debit
Normal Balance
200.00 
2. How is each account classified?
Accounts Receivable—Kids Time is an asset account.
Sales is as revenue account.
3. How is each classification changed?
Assets are increased.
Revenues are increased.
Credit
Normal Balance
200.00 
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Revenues increase on the credit side.
Lesson 4-3, page 77

32. SOLD SERVICES ON ACCOUNT (continued)
August 12. Sold services on account to Kids Time, $ Sales Invoice No. 1. 2 1 4 3
1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
Lesson 4-3, page 77

33. PAID CASH FOR AN EXPENSE
August 12. Paid cash for rent, $ Check No. 4.
Cash
Rent Expense
1. Which accounts are affected?
Rent Expense
Cash
Debit
Normal Balance
250.00
2. How is each account classified?
Rent Expense is an expense account.
Cash is an asset account. 
3. How is each classification changed?
Expenses are increased.
Assets are decreased.
Debit
Normal Balance
250.00 
4. How is each amount entered in the accounts?
Expenses increase on the debit side.
Assets decrease on the credit side.
Lesson 4-3, page 78

34. PAID CASH FOR AN EXPENSE (continued)
August 12. Paid cash for rent, $ Check No. 4. 2 3 1 4
1. Write the date.
2. Debit Rent Expense.
3. Credit Cash.
4. Write the source document number.
Lesson 4-3, page 78

35. RECEIVED CASH ON ACCOUNT
August 12. Received cash on account from Kids Time, $ Receipt No. 2.
Accounts Rec.—Kids Time
Cash
1. Which accounts are affected?
Cash
Accounts Receivable—Kids Time
Debit
Normal Balance
100.00
2. How is each account classified?
Cash is an asset account.
Accounts Rec.—Kids Time is an asset account. 
3. How is each classification changed?
Assets are increased.
Assets are decreased.
Debit
Normal Balance
100.00 
4. How is each amount entered in the accounts?
Assets increase on the debit side.
Assets decrease on the credit side.
Lesson 4-3, page 79

36. RECEIVED CASH ON ACCOUNT (continued)
August 12. Received cash on account from Kids Time, $ Receipt No. 2. 3 1 4 2
1. Write the date.
2. Debit Cash.
3. Credit Sales.
4. Write the source document number.
Lesson 4-3, page 79

37. PAID CASH TO OWNER FOR PERSONAL USE
August 12. Paid cash to owner for personal use, $ Check No. 6.
Cash
Barbara Treviño, Drawing
1. Which accounts are affected?
Barbara Treviño, Drawing
Cash
Debit
Normal Balance
100.00
2. How is each account classified?
Barbara Treviño, Drawing is an owner’s equity account.
Cash is an asset account. 
Debit
Normal Balance
3. How is each classification changed?
Withdrawals are increased. (This results in a decrease in owner’s equity.)
Assets are decreased.
100.00 
4. How is each amount entered in the accounts?
Owner’s equity accounts decrease on the debit side.
Assets decrease on the credit side.
Lesson 4-3, page 80

38. PAID CASH TO OWNER FOR PERSONAL USE
August 12. Paid cash to owner for personal use, $ Check No. 6. 2 1 4 3
1. Write the date.
2. Debit Barbara Treviño, Drawing.
3. Credit Cash.
4. Write the source document number.
Lesson 4-3, page 80

39. Work Together &
On Your Own – Page 81

40. TERMS REVIEW
proving cash
Lesson 4-4, page 87

41. TERMS REVIEW Proving Cash
Determining that the amount of cash agrees with the accounting records.
Lesson 4-4, page 85

42.     PROVING A JOURNAL PAGE 2 General $ 7,960.00 $12,840.00
Column Debit Column Totals Credit Column Totals
General $ 7, $12,840.00
Sales 2,439.00
Cash 12, ,000.00 1
Totals $20, $20,279.00 2 3
1. Add each amount column.
2. Add debit column totals, and then add the credit column totals.
3. Verify that the total debits and total credits are equal.
Lesson 4-4, page 82

43. RULING A JOURNAL PAGE 1 5 2 3 4 1. Rule a single line.
2. Write the date.
3. Write Carried Forward.
4. Write each column total.
5. Rule double lines.
Lesson 4-4, page 83

44. STARTING A NEW JOURNAL PAGE1  3 4 2
1. Write the page number.
2. Write the date.
3. Write Brought Forward and place a check mark in the Post. Ref. column.
4. Record the column totals brought forward from the previous page.
Lesson 4-4, page 84

45. PROVING A JOURNAL AT THE END OF A MONTH   
Column Debit Column Totals Credit Column Totals
General $ 8, $12,840.00
Sales 4,411.00
Cash 14, ,019.00 1
Totals $23, $23,270.00 2 3
1. Add each amount column.
2. Add debit column totals, and then add the credit column totals.
3. Verify that the total debits and total credits are equal.
Lesson 4-4, page 84

46. RULING A JOURNAL AT THE END OF A MONTH1 5 4 2 3
1. Rule a single line.
2. Write the date.
3. Write Totals.
4. Write each column total.
5. Rule double lines.
Lesson 4-4, page 84

47. STANDARD ACCOUNTING PRACTICES1 4 5 2 3 6 7 8 9
Lesson 4-4, page 86

48. Work Together &
On Your Own – Page 87