1. Journalizing Transactions
Chapter 3
Journalizing Transactions

2. 3.1 Journals and Journalizing
page 57
Journal – a form for recording transactions in chronological order
Journalizing – recording transactions in a journal

3. Journals and Journalizing
page 57
Entry – information for each transaction recorded in a journal
General journal – journal with two amount columns in which all kinds of entries can be recorded
Double-entry accounting – the recording of the debit and credit parts of a transaction

4. Source Documents
page 57
Source document – a business paper from which information is obtained for a journal entry
Accounting Concept: Objective Evidence
When a source document is prepared for each transaction

5. Source Documents
page 58
Check (C) – a business form ordering a bank to pay cash from a bank account

6. Source Documents
page 58
Invoice – a form describing the goods or services sold, the quantity, and the price
Sales invoice (S) – an invoice used as a source document for recording a sale on account

7. Source Documents
page 59
Receipt (R) – a business form giving written acknowledgement for cash received
receipt

8. Source Documents
page 59
Memorandum (M) – a form on which a brief message is written describing a transaction
memorandum

9. Source Documents
page 59
Calculator tape (T) – printed total of the amount of cash received for a time period (day)
calculator tape

10. RECEIVED CASH FROM OWNER AS AN INVESTMENT
page 60
August 1. Received cash from owner as an investment, $5, Receipt No. 1. 2 1 3 4
1. 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 3-1

11. PAID CASH FOR SUPPLIES
page 61
August 3. Paid cash for supplies, $ Check No. 1. 2 1 3 4
1. 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 3-1

12. 3.2 MORE TRANSACTIONS
page 73

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

14. BOUGHT SUPPLIES ON ACCOUNT
page 64
August 7. Bought supplies on account from Supply Depot, $ Memorandum No. 1. 2 1 4 3
1. 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 3-2

15. PAID CASH ON ACCOUNT
page 65
August 11. Paid cash on account to Supply Depot, $ Check No. 3. 2 1 4 3
1. 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 3-2

16. 3.3 MORE TRANSACTIONS
page 73

17. RECEIVED CASH FROM SALES
page 68
August 12. Received cash from sales, $ Tape No. 12. 2 1 4 3
1. 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

18. SOLD SERVICES ON ACCOUNT
page 69
August 12. Sold services on account to Oakdale School, $ Sales Invoice No. 1. 2 1 4 3
1. 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

19. PAID CASH FOR AN EXPENSE
page 70
August 12. Paid cash for rent, $ Check No. 4. 2 1 4 3
1. 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

20. RECEIVED CASH ON ACCOUNT
page 71
August 18. Received cash on account from Oakdale School, $ Receipt No. 2. 2 1 4 3
1. 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

21. PAID CASH TO OWNER FOR PERSONAL USE
page 72
August 18. Paid cash to owner for personal use, $ Check No. 6. 2 1 4 3
1. 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

22. 3.4 Completed Journal Page
A general journal page is complete when there is insufficient space to record any more entries
Do not split a journal entry between journal pages

23. A COMPLETED JOURNAL PAGE
LESSON 3-4

24. STARTING A NEW GENERAL JOURNAL PAGE2
LESSON 3-4

25. STANDARD ACCOUNTING PRACTICES
page 76 4 2 6 3 1 5
LESSON 3-4