CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Activating Strategy Travelocity – Accounting in the Real World pg 55 What account would Travelocity credit when you make a reservation with them? What would be debited? Why do you think Travelocity might be able to get less expensive airline tickets than you, as an individual, could get? 2 LESSON 3-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes 3-1 Journal Book of original entry Form for recording transactions Recorded in chronological order Journalizing Recording Journal entry Information that gets recorded General Journal Journal for any type of entry 3 LESSON 3-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 3-1 A GENERAL JOURNAL page 57

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes continued 5 LESSON 3-1 Double-entry accounting Each transaction has at least two parts Debit Credit Source Document Business form or paper that acts as proof that a transaction occurred OBJECTIVE EVIDENCE CONCEPT – using a source document

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 3-1 CHECKS page 58

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 3-1 SALES INVOICES page 58

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 3-1 OTHER SOURCE DOCUMENTS page 59 memorandum calculator tape receipt

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes Continued 9 LESSON 3-1 Steps for Journalizing 1Date 2Debit account title and debit amount 3Credit account title and credit amount 4Source document

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON Write the title of the account debited. Write the debit amount. RECEIVED CASH FROM OWNER AS AN INVESTMENT 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

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 3-1 PAID CASH FOR SUPPLIES 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

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 3-1 TERMS REVIEW journal journalizing entry general journal double-entry accounting source document check invoice sales invoice receipt memorandum page 62