3. JournalJournal –Form for recording transactions in chronological order JournalizingJournalizing –Recording transactions in a journal JOURNALS AND JOURNALIZING JOURNALS AND JOURNALIZING

4. Recognizing Ethical Dilemmas and Actions 1.Privately write down the names of at least five individuals from whom you would feel comfortable seeking advice on ethical dilemmas.  Why did you choose these individuals?  Why did you not choose others you know? CHARACTER COUNTSCHARACTER COUNTS ( )

5. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT Special Amount ColumnSpecial Amount Column –Journal amount column headed with an account title General Amount ColumnGeneral Amount Column –Journal amount column that is not headed with an account title A FIVE – COLUMN JOURNAL A FIVE – COLUMN JOURNAL

6. EntryEntry –Information for each transaction recorded in a journal Double-Entry AccountingDouble-Entry Accounting –Recording of debit and credit parts of a transaction Source DocumentSource Document –Business paper from which information is obtained for a journal entry CheckCheck –Business form ordering a bank to pay cash from a specific bank account

7. No. 1$ Date20 To For BAL BRO’T FOR’D AMT. DEPOSITED SUBTOTAL………………… AMT. THIS CHECK…………. BAL. CAR’D. FOR’D………… OTHER 7549 Broadway Portland, OR 97202-2531 20 PAY TO THE ORDER OF $ DOLLARS Pacific national bank Portland, OR FOR  Techknow Consulting A business form ordering a bank to pay cash from a bank account 0 00 5000 00 8 1 -- 5000 00 275 00 4725 00 275.00 August 3-- Port City Supply Supplies Port City Supply Supplies Kim Park August 3,-- 275.00 Two hundred seventy-five and no 100 CHECKS CHECKS

8. Form describing the goods or services sold, the quantity and the price Techknow Consulting 7549 Broadway Portland, OR 97202-2531 Sold to: No. 1 Date Terms Total Description Oakdale School 5211 SE Oak Street Portland, OR 97208-5392 8/12/-- 30 Days Computer Network Setup$350.00 $350.00 SALES INVOICES SALES INVOICES

9. InvoiceInvoice –Form describing: Goods and Services sold, Quantity sold and Price Sales InvoiceSales Invoice –Invoice used as source document for recording a sale ON ACCOUNT

10. Business form giving written acknowledgement for cash received Techknow Consulting 7549 Broadway Portland, OR 97202-2531 No. 1 Date From For 20 Receipt No. 1 20 Rec’d from For Dollars Received By Kim Park August 1-- Kim Park Investment Kim Park Investment August 1-- 5,000 00 5,000 00 no 100 Five thousand and OTHER SOURCE DOCUMENTS OTHER SOURCE DOCUMENTS ReceiptReceipt –A business form giving written acknowledgement for cash received

11. Form on which a brief message is written describing a transaction Techknow Consulting 7549 Broadway Portland, OR 97202-2531 MEMORANDUM No. 1 Signed:_____________________ Date: __________________ Bought supplies on account from Supply Depot, $500.00 August 7, 20-- Kim Park OTHER SOURCE DOCUMENTS OTHER SOURCE DOCUMENTS MemorandumMemorandum –A form on which a brief message is written describing a transaction

12. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 20-- Aug 1 2Debit 3Credit R1 Kim Park, Capital 5000.00 4SourceDocument 1Date 1 RECEIVED CASH FROM OWNER AS AN INVESTMENT RECEIVED CASH FROM OWNER AS AN INVESTMENT

13. 1 Date - Write the date, 20--, Aug 1, in the Date column. This is the first entry. Therefore, write both the year and month for the first entry only. 2 Debit – The journal has a special amount column for debits to Cash. Write the debit amount, $5000, in the Cash Debit column. Column has heading. You don not need to write it 3 Credit – There is no special amount column with title for the account credited, Kim Park, Capital. Therefore, record credit amount, $5000 in General Credit column. Write account title in Account Title column. 4 Source Document – Write the source document number, R1, in the Doc No column. The source document number indicates that this is Receipt No. 1 This serves as a cross reference from the Journal to the source document.

14. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 3Credit 20-- Aug 1 R1 Kim Park, Capital 5000.00 4SourceDocument 1Date 3 Supplies 275.00 C1 1 PAID CASH FOR SUPPLIES 275.00SuppliesCash 275.00

15. 1 Date - Write the date, 3, in the Date column. This is NOT the first entry. Therefore, do not write the year and month for this entry. 2 Debit – There is NO special amount column for Supplies. Therefore, record the debit amount, $275, in the General Debit column. Write the title, Supplies, in the Account Title column. 3 Credit – The journal has a special amount column for credits to Cash. Write the credit amount, $275, in the Cash Credit column. The title of the account is the column heading. Therefore, do not write the account title in the Account Title column. 4 Source Document – Write the source document number, C1, in the Doc. No. column. The source document number, C1 indicates that this is Check No. 1.

16. Journalizing entries in a five-column journal End of Lesson REVIEW REVIEW WORK TOGETHER 3-1 cont. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 20-- Apr 1 2Debit 3Credit R1 N. Derner, Capital 1500.00 4SourceDocument 1Date 1 2 C1 Supplies 375.00

17. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 3Credit 4SourceDocument 1Date 20-- Aug 1 R1 K. Park, Capital 5000.00 3 Supplies 275.00 C1 4 C2 Prepaid Insurance 1200.00 1 PAID CASH FOR INSURANCE Prepaid Insurance Cash 1200.00 1200.00

18. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 3Credit 4SourceDocument 1Date 20-- Aug 1 R1 K. Park, Capital 5000.00 3 Supplies 275.00 C1 4 C2 Prepaid Insurance 1200.00 7 M1 Supplies 500.00 A/P Supply Depot 1 BOUGHT SUPPLIES ON ACCOUNT Supplies Accounts Pay. – Supply Depot 500.00 500.00

19. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 3Credit 4SourceDocument 1Date 7 M1 Supplies 500.00 A/P Supply Depot 11 C3 A/P Supply Depot 300.00 1 PAID CASH ON ACCOUNT A/P Supply Depot Cash 300.00 300.00

20. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 5 7 9 M1 C2 Supplies 500.00 A/P Palm Supply 500.00 P.P. Insurance 300.00 A/P Palm Supply 250.00 1 C3 Journalizing entries in a five-column journal End of Lesson REVIEW REVIEW WORK TOGETHER 3-2 cont.

21. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 3Credit 2Debit 4SourceDocument 1Date 12 T12295.00 1 RECEIVED CASH FROM SALES

22. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 3Credit 4SourceDocument 1Date 12 T12 295.00 12 S1 A/R Oakdale School 350.00 1 SOLD SERVICES ON ACCOUNT A/R – Oakdale School Sales 350.00 350.00

23. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 3Credit 4SourceDocument 1Date 12 T12 295.00 12 S1 A/R Oakdale School 350.00 12 C4 Rent Expense 300.00 12 C5 Utilities Expense 40.00 1 PAID CASH FOR AN EXPENSE PAID CASH FOR AN EXPENSE Rent Expense Cash 300.00 300.00

24. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 4SourceDocument 1Date 12 T12 295.00 12 S1 A/R Oakdale School 350.00 18 R2 A/R Oakdale School 200.00 3Credit 1 RECEIVED CASH ON ACCOUNT RECEIVED CASH ON ACCOUNT Cash A/R Oakdale School 200.00 200.00

25. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 3Credit 4SourceDocument 1Date 12 T12 295.00 12 S1 A/R Oakdale School 350.00 18 R2 A/R Oakdale School 200.00 2Debit 12 C6125.00 K Park,Drawing 1 PAID CASH TO OWNER FOR PERSONAL USE PAID CASH TO OWNER FOR PERSONAL USE Kim Park, Drawing Cash 125.00 125.00

26. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 12 C4 Rent Expense 1000.00 13 14 19 20 21 S1 C5 R2 C6 2500.00 A/R L. Rohe 510.00 Utilities Expense 148.00 A/R L. Rohe 255.00 N.Derner,Drawing 1000.00 2500.00 1 T13 Journalizing that effect owner’s equity End of Lesson REVIEW REVIEW WORK TOGETHER 3-3 cont.

27. Add each Amount column Add debit totals And credit totals Column General Sales Cash Totals Debit Debit Column Totals Credit Credit Column Totals $3,543.00 6,710.00 6,710.00 10,253.00 $ 5,750.00 1,960.00 2,543.00 10,253.00 2 3 1 Totals equal PROVING A JOURNAL PAGE PROVING A JOURNAL PAGE

28. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 Single Rule 2Date 20-- Aug 1 R1 Kim Park, Capital 5000.00 3 Supplies 275.00 C1 4 C2 Prepaid Insurance 1200.00 1 3CarriedForward 4 Column Totals 5DoubleRule 20 Supplies A/P Thomas Supply Co. Carried Forward M250.00 3543.00 5750.001960.00 6710.002543.00 RULING A JOURNAL PAGE RULING A JOURNAL PAGE

29. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2000 Aug 20 2 1 Page number 2Date 3BroughtForward 3543.00 6710.001960.002543.00 5750.00 Brought Forward 4 Column Totals STARTING A JOURNAL PAGE STARTING A JOURNAL PAGE

30. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 Single Rule 2Date 20-- Aug 20 Brought Forward 5750.00 3543.00 21 1960.006710.00 T21 2543.00 8.00 1 3Totals 4 Column Totals 5DoubleRule 31 Misc. Expense Totals M3 225.00 4351.00 5750.003565.00 8315.003351.00 PROVING AND RULING A JOURNAL PAGE AT THE END OF THE MONTH PROVING AND RULING A JOURNAL PAGE AT THE END OF THE MONTH 225.00 190.00 8.00 31 T31

31. Add each Amount column Add debit totals And credit totals Column General Sales Cash Totals Debit Debit Column Totals Credit Credit Column Totals $4,351.00 8,351.00 8,351.00 12,666.00 $ 5,750.00 3,565.00 3,351.00 12,666.00 2 3 1 Totals equal PROVING CASH PROVING CASH Prove page 2 of the Journal

32. Cash on hand at the beginning of the month………………… 0.00 8,315.00 8,315.00 -3,351.00 Prove Cash: Plus total cash received during the month….………………… Equals Total……………………………………………………… Less total cash paid during the month………………………… Equals cash balance at the end of the month………………… Checkbook balance on the next unused check stub………… 8,315.00 8,315.00 4,964.00 4,964.00

33. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 20-- 50.00 5.00 29 350.003500.00 C22 100.00 500.00 1 29 30 K. Park, Drawing Totals C24 50.00 8750.00 9200.004000.00 1230.007850.00 5.00 100.00 500.00 30 C23 STANDARD ACCOUNTING PRACTICES 28 29 Rent Expense Repair Expense Misc. Expense T28 C22 350 00 Supplies

34. JOURNAL PAGE 12345 DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASHSALES CREDIT DEBIT CREDIT 21 23 27 30 C6 S2 C7 N.Derner,Drawing 1000.00 A/R L. Rohe 375.00 N.Derner,Drawing 500.00 5824.004582.007600.003142.009500.00 Carried Forward 1 Proving and ruling a Journal End of Lesson REVIEW REVIEW WORK TOGETHER 3-4 cont. 30 500.00 29 A/R L. Rohe R3 300.00

35. Key Accounting Concepts Objective EvidenceObjective Evidence –A source document is prepared for each transaction: –Ex: –Receipt –Check –Invoice etc.