Journals, Source Documents, and Recording Entries in a Journal LESSON 3-1 6/23/2018 LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal

TERMS REVIEW page 62 Journal—a form for recording transactions in chronological order Journalizing—recording transactions in a journal Special amount column—a journal amount column headed with an account title General amount column—a journal amount column not headed with an account title Entry—information for each transaction recorded in a journal Double-entry accounting—the recording of debit and credit parts of a transaction LESSON 3-1

Terms Continued Source Document—a business paper from which information is obtained for a journal entry Check—a business form ordering a bank to pay cash from a bank account Invoice—a form describing the goods and services sold, the quantity, and the price Sales Invoice—an invoice used as a source document for recording a sale on account Receipt—a business form giving written acknowledgement for cash received Memorandum—a form which a brief message is written describing a transaction LESSON 3-1

A FIVE-COLUMN JOURNAL page 57 LESSON 3-1

CHECKS page 58 LESSON 3-1

SALES INVOICES page 58 LESSON 3-1

OTHER SOURCE DOCUMENTS LESSON 3-1 6/23/2018 OTHER SOURCE DOCUMENTS page 59 receipt calculator tape memorandum LESSON 3-1

RECEIVED CASH FROM OWNER AS AN INVESTMENT page 60 August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1. 1 3 2 4 1. Write the date in the Date column. 2. Write the debit amount in the Cash Debit column. 3. Record the credit amount in the General Credit column. Write the title of the account in the Account Title column. 4. Write the source document number in the Doc. No. column. LESSON 3-1

PAID CASH FOR SUPPLIES page 61 August 3. Paid cash for supplies, $275.00. Check No. 1. 1 2 3 4 1. Write the date in the Date column. 2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-1

LESSON 3-2 6/23/2018 LESSON 3-2 Journalizing Buying Insurance, Buying on Account, and Paying on Account

PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1,200.00. Check No. 2. 1 2 3 4 1. Write the date in the Date column. 2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-2

BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1. 2 4 1 3 1. Write the date in the Date column. 2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Record the credit amount on the next line in the General Credit column. Write the title of the account in the Account Title column. 4. Write the source document number in the Doc. No. column on the first line of the entry. LESSON 3-2

PAID CASH ON ACCOUNT page 65 August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3. 2 1 3 4 1. Write the date in the Date column. 2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-2

LESSON 3-3 6/23/2018 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue

RECEIVED CASH FROM SALES page 67 August 12. Received cash from sales, $295.00. Tape No. 12. 1 3 4 2 1. Write the date in the Date column. 2. Write the debit amount in the Cash Debit column. 3. Write the credit amount in the Sales Credit column. Place a check mark in the Account Title column. A check mark is also placed in the Post. Ref. column. 4. Write the source document number in the Doc. No. column. LESSON 3-3

SOLD SERVICES ON ACCOUNT page 68 August 12. Sold services on account to Oakdale School, $350.00. Sales Invoice No. 1. 2 1 4 3 1. Write the date in the Date column. 2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Sales Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-3

PAID CASH FOR AN EXPENSE page 69 August 12. Paid cash for rent, $300.00. Check No. 4. 1 2 4 3 1. Write the date in the Date column. 2. Write the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-3

RECEIVED CASH ON ACCOUNT page 70 August 18. Received cash on account from Oakdale School, $200.00. Receipt No. 2. 3 1 2 4 1. Write the date in the Date column. 2. Write the debit amount in the Cash Debit column. 3. Record the credit amount in the General Credit column. Write the title of the account in the Account Title column. 4. Write the source document number in the Doc. No. column. LESSON 3-3

PAID CASH TO OWNER FOR PERSONAL USE page 71 August 18. Paid cash to owner for personal use, $125.00. Check No. 6. 1 2 4 3 1. Write the date in the Date column. 2. Write the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-3

LESSONG 3-4 Proving and Ruling a Journal 6/23/2018 LESSON 3-4 Proving and Ruling a Journal

Proving Cash Proving Cash—determining that the amount of cash agrees with the accounting records LESSON 3-1

PROVING A JOURNAL PAGE 1 2 3 1. Add each of the amount columns. 2. Add the debit column totals, and then add the credit column totals. 3. Verify that the total debits and total credits are equal. LESSON 3-4

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

STARTING A NEW JOURNAL PAGE 1 2 3 4 1. Write the page number. 2. Write the date. 3. Write Brought Forward in the Account Title column. A check mark is also placed in the Post. Ref. column. 4. Record the column totals brought forward from the previous page. LESSON 3-4

PROVING AND RULING A JOURNAL AT THE END OF A MONTH page 75 1 2 3 5 4 1. Rule a single line. 2. On the next line, write the date. 3. Write the word Totals. 4. Write each column total. 5. Rule double lines. LESSON 3-4

STANDARD ACCOUNTING PRACTICES page 77 1 4 5 2 3 6 7 8 9 LESSON 3-4

TERM REVIEW page 78 proving cash LESSON 3-4