1. Chapter 5 Journalizing Transactions

2. Journal Journal —A form for recording transactions in chronological order

3. Journal Column Headings  Special Amount Columns  Special Amount Columns—a journal amount column headed with an account title  Often used when there are a large number of transactions involving that particular account  Example: Cash is used for almost all of the transactions we will do in Accounting I. Therefore, Cash has a Debit (received cash) and a Credit (paid cash) column.  General Amount Column  General Amount Column—a journal amount column that is not headed with an account title  Will be used for all other accounts Special Amount Columns General Amount Columns

4. Recording Transactions 1.Date—write the date in the date column Month in column 1, day in column 2, and the year by the word DATE 2.Enter the name of the account that will go in the General Amount Column 3.Enter the General amount in either the Debit or Credit column 4.Enter the amount only in a Special Amount column Example: Example: Paid cash for supplies $500.00, Check 4 2 8 Supplies C4 5 0 0 -- 5 0 0 --

5. Journalizing a transaction that does not use a Special Amount Column  At this time, we will only have 1 transaction that uses 2 general amount columns and zero special amount columns  Bought Supplies on Account from Biggler Company $200 Memo 2 2 8 Supplies M4 5 0 0 -- Biggler Co. 5 0 0 -- NOTE: The date and source document are only written once per transaction

6. Journalizing a transaction that uses only Special Amount Columns  At this time, we will only have 1 transaction that uses 2 special amount columns and zero general amount columns  Received Cash from Sales $600 T8 2 8 T8 6 0 0 -- 6 0 0 -- NOTE: A checkmark is placed in the account title column to show no title was needed. Checkmarks are used to signify the title was not MISSED just not needed.

7. Moving to Page 2 of a Journal 18 Carried Forward 6 0 0-- 1 0 0 -- 1 0 0 0-- 1 2 0 0 -- 7 0 0 -- 1.Write the day of the month in the date column. 2.Write Carried Forward in the account title column. 3.Place a single line at across the money columns only 4.Add each column 5.Prove the journal by adding Debit totals and Credit totals. They should equal. 6.Place a double line across the money columns showing the journal is proved. 7.Transfer the totals to the first row of the next Journal page by writing the date and Brought Forward 18 Brought Forward 6 0 0-- 1 0 0 -- 1 0 0 0-- 1 2 0 0 -- 7 0 0 --

8. Completing a Journal at the end of the month 28 TOTALS 6 0 0-- 1 0 0 -- 1 0 0 0-- 1 2 0 0 -- 7 0 0 -- 1.Write the last day of the month in the date column. 2.Write TOTALS in the account title column. 3.Place a single line at across the money columns only 4.Add each column 5.Prove the journal by adding Debit totals and Credit totals. They should equal. 6.Place a double line across the money columns showing the journal is proved. 7.Prove Cash