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

1. Chapter 3 - Journals, Source Documents, and Recording Entries in a Journal • Hand out Notes Sheet!!! LESSON 3-1

2. LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal Journal – form for recording transactions in chronological order Journalizing – Recording transactions in a journal

3. A GENERAL JOURNAL page 57 Entry – information for each transaction recorded in a journal General Journal – a journal with two amount columns in which all kinds of entries can be recorded LESSON 3-1

4. General Journal Continued… Double-Entry Accounting – the recording of debit and credit parts of a transaction Source Document – a business paper from which information is obtained for a journal entry. checks, sales invoices, receipts, calculator tape and memorandums CONCEPT: Objective Evidence – a source document is prepared for each transaction, this proves the transaction occurred. LESSON 3-1

5. CHECKS page 58 Check – a business form ordering a bank to pay cash from a bank account, all checks are prenumbered (C#) LESSON 3-1

6. SALES INVOICES page 58 Sales Invoice – an invoice used as a source document for recording a sale on account, sales invoices are prenumbered (S#) LESSON 3-1

7. calculator tape receipt memorandum OTHER SOURCE DOCUMENTS page 59 A business form giving written acknowledgement for cash received (R#) The total cash sales for the day (T date) A form on which a brief message is written describing a transaction (M#) LESSON 3-1

8. 2 2 3 3 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 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, indented. Write the credit amount. 4. Write the source document number in the Doc. No. column. LESSON 3-1

9. 2 2 3 3 PAID CASH FOR SUPPLIES page 61 August 3. Paid cash for supplies, $275.00. Check No. 1. 1 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, indented. Write the credit amount. 4. Write the source document number in the Doc. No. column. LESSON 3-1

10. journal journalizing entry general journal double-entry accounting source document check invoice sales invoice receipt memorandum TERMS REVIEW page 62 LESSON 3-1

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

12. 2 2 3 3 PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1,200.00. Check No. 2. 1 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

13. 2 2 3 3 BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1. 1 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. 2 2 3 3 PAID CASH ON ACCOUNT page 65 August11. Paid cash on account to Supply Depot, $300.00. Check No. 3. 1 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

15. LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account

16. 2 2 3 3 RECEIVED CASH FROM SALES page 68 August 12. Received cash from sales, $295.00. Tape No. 12. 1 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 3-3

17. 2 2 3 3 SOLD SERVICES ON ACCOUNT page 69 August 12. Sold services on account to Oakdale School, $350.00. Sales Invoice No. 1. 1 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 3-3

18. 2 2 3 3 PAID CASH FOR AN EXPENSE page 70 August 12. Paid cash for rent, $300.00. Check No. 4. 1 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 3-3

19. 2 2 3 3 RECEIVED CASH ON ACCOUNT page 71 August 18. Received cash on account from Oakdale School, $200.00. Receipt No. 2. 1 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 3-3

20. 2 2 3 3 PAID CASH TO OWNER FOR PERSONAL USE page 72 August18. Paid cash to owner for personal use, $125.00. Check No. 6. 1 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 3-3

21. LESSON 3-4 Starting a New Journal Page

22. A COMPLETED JOURNAL PAGE page 74 LESSON 3-4

23. 2 STARTING A NEW GENERAL JOURNAL PAGE page 75 LESSON 3-4

24. 2 5 STANDARD ACCOUNTING PRACTICES page 76 4 6 3 1 LESSON 3-4

25. Questions • When is a general journal page complete? • If an entire entry is incorrect and is discovered before the next entry is journalized, how should the incorrect entry be corrected? • If several correct entries are recorded after an incorrect entry is made, how should the incorrect entry be corrected? LESSON 3-4