LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal

Journals and Journalizing A form for recording transactions in chronological order is called a journal. Recording transactions in a journal is called journalizing. LESSON 3-1 2

General Journal Information for each transaction recorded in a journal is called an entry. A journal with two amount columns in which all kinds of entries can be recorded is called a general journal. LESSON 3-1 3

A GENERAL JOURNAL LESSON page 57

General Journal Accuracy Chronological Record Double-Entry Accounting The recording of debit and credit parts of a transaction is called double-entry accounting. In double-entry accounting, each transaction affects at least two accounts. Both the debit and credit parts are recorded, reflecting the dual effect of each transaction on the business’s records. Double-entry accounting assures that the debits equal the credits. Source Documents A business paper from which information is obtained for a journal entry is called a source document. Each transaction is described by a source document that proves that the transaction did occur. Five types of source documents 1.Checks 2.Sales Invoices 3.Receipts 4.Calculator Tapes 5.Memorandums LESSON 3-1 5

Check-a business form ordering a bank to pay cash from a bank account CHECKS LESSON page 58

Invoices-A form describing the goods or services sold, the quantity, and the price Sales Invoices-(sales ticket; sales slip) An invoice used as a source document for recording a sale on account SALES INVOICES LESSON page 58

Other Documents Receipts-A business form giving written acknowledgement for cash received Memorandums-A form on which a brief message is written describing a transaction LESSON 3-1 8

OTHER SOURCE DOCUMENTS LESSON page 59 memorandum calculator tape receipt

RECEIVED CASH FROM OWNER AS AN INVESTMENT LESSON Write the title of the account debited. Write the debit amount. page 60 August 1. Received cash from owner as an investment, $5, Receipt No Write the date in the Date column. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column

PAID CASH FOR SUPPLIES LESSON page 61 August 3. Paid cash for supplies, $ Check No Write the date in the Date column. 4.Write the source document number in the Doc. No. column. 3.Write the title of the account credited. Write the credit amount. 2.Write the title of the account debited. Write the debit amount. 33

TERMS REVIEW journal journalizing entry general journal double-entry accounting source document check invoice sales invoice receipt memorandum LESSON page 62

LESSON 3-2 Journalizing Buying Insurance, Buying on Account, and Paying on Account

14 LESSON 3-2 PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1, Check No 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

15 LESSON 3-2 BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $ Memorandum No 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

16 LESSON 3-2 PAID CASH ON ACCOUNT page 65 August 11. Paid cash on account to Supply Depot, $ Check No 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 3-3 Journalizing Transactions That Affect Owner ’ s Equity and Receiving Cash on Account

18 LESSON 3-3 RECEIVED CASH FROM SALES page 68 August 12. Received cash from sales, $ Tape No 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

19 LESSON 3-3 SOLD SERVICES ON ACCOUNT page 69 August 12. Sold services on account to Oakdale School, $ Sales Invoice No 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

20 LESSON 3-3 PAID CASH FOR AN EXPENSE page 70 August 12. Paid cash for rent, $ Check No 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

21 LESSON 3-3 RECEIVED CASH ON ACCOUNT page 71 August 18. Received cash on account from Oakdale School, $ Receipt No 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

22 LESSON 3-3 PAID CASH TO OWNER FOR PERSONAL USE page 72 August 18. Paid cash to owner for personal use, $ Check No 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 3-4 Starting a New Journal Page

24 LESSON 3-4 A COMPLETED JOURNAL PAGE page 74

25 LESSON 3-4 STARTING A NEW GENERAL JOURNAL PAGE page 75 2

26 LESSON 3-4 STANDARD ACCOUNTING PRACTICES page