1. Journalizing Transactions

2. 2 5 column journal 7. Journals and Journalizing page 56 Journal – a form for recording transactions in chronological order Journalizing – recording transactions in a journal

3. 3 Journals and Journalizing page 57 Special amount column – a journal amount column headed with an account title, used for transactions that occur frequently General amount column – a journal amount column that is NOT headed with an account title

4. 4 Journals and Journalizing page 57 Entry – information for each transaction recorded in a journal Double-entry accounting – the recording of the debit and credit parts of a transaction

5. 5 8. 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

6. 6 Source Documents page 58 Check (C) – a business form ordering a bank to pay cash from a bank account

7. 7 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

8. 8 Source Documents page 59 Receipt (R) – a business form giving written acknowledgement for cash received receipt

9. 9 Source Documents page 59 Memorandum (M) – a form on which a brief message is written describing a transaction memorandum

10. 10 Source Documents page 59 Calculator tape (T) – printed total of the amount of cash received for a time period (day) calculator tape

11. 11LESSON 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.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. 1 2 4 33

12. 12LESSON 3-1 PAID CASH FOR SUPPLIES page 61 August 3. Paid cash for supplies, $275.00. Check No. 1. 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. 1 4 3 22

13. 13LESSON 3-2 PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1,200.00. Check No. 2. 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. 1 4 3 22

14. 14LESSON 3-2 BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1. 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. 1 4 22 33

15. 15LESSON 3-2 PAID CASH ON ACCOUNT page 65 August 11. Paid cash on account to Supply Depot, $300.00. Check No. 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 Cash Credit column. 4.Write the source document number in the Doc. No. column. 4 3 2 2 1

16. 16 MORE TRANSACTIONS page 73

17. 17LESSON 3-3 RECEIVED CASH FROM SALES page 67 August 12. Received cash from sales, $295.00. Tape No. 12. 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. 4 21 333

18. 18LESSON 3-3 SOLD SERVICES ON ACCOUNT page 68 August 12. Sold services on account to Oakdale School, $350.00. Sales Invoice No. 1. 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. 413 2 2

19. 19LESSON 3-3 PAID CASH FOR AN EXPENSE page 69 August 12. Paid cash for rent, $300.00. Check No. 4. 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. 41 3 22

20. 20LESSON 3-3 RECEIVED CASH ON ACCOUNT page 70 August 18. Received cash on account from Oakdale School, $200.00. Receipt No. 2. 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. 12 4 3 3

21. 21LESSON 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.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. 41 3 22

22. 22 9. Proving and Ruling a Journal page 73 o Proving a Journal o Performed before using the last line in a journal before totals are carried forward o Verifies debits = credits o 3 steps 1.Add each of the amount columns 2.Add the debit andcredit column totals 3.Verify total debits = total credits

23. 23 Proving and Ruling a Journal page74 o Ruling a Journal…end of page 1.Rule a single line across all amount columns below last entry 2.Write the current date 3.Write “Carried Forward” in Account Title column and place a check mark in Post Ref. column 4.Write each column total below the single line 5.Rule a double line below column totals to indicate total debits = total credits

24. 24LESSON 3-4 RULING A JOURNAL PAGE 5.Rule double lines. page 74 1 23 5 4 1.Rule a single line. 2.Write the date. 3.Write Carried Forward. 4.Write each column total.

25. 25 Proving and Ruling a Journal page75 o Starting a new Journal Page 1.Write the page number at the top 2.Write the current date 3.Write “Brought Forward” in Account Title column and place a check mark in Post Ref. column 4.Record the column totals

26. 26LESSON 3-4 STARTING A NEW JOURNAL PAGE page 75 1 2 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. 3

27. 27 Proving and Ruling a Journal page75 o End of Month Ruling o Follow the same steps of ruling except 1.Write “Totals” in Account Title column and DO NOT put a check mark in Post Ref. column

28. 28LESSON 3-4 PROVING AND RULING A JOURNAL AT THE END OF A MONTH page 75 5.Rule double lines. 1 23 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.

29. 29 Proving Cash page76 o Proving cash – determining that the amount of cash agrees with the accounting record o Start with cash on hand at the beginning of the month o Add cash received (cash debit column) o Total o Minus cash paid (cash credit column) o Total o Verify this amount matches balance in checkbook

30. 30LESSON 3-4 STANDARD ACCOUNTING PRACTICES page 77 1 2 3 45 67 8 9