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Chapter 3: Journalizing Transactions
Transcript of Chapter 3: Journalizing Transactions
a business form to ordering a bank to pay cash from a bank account
an invoice used as a source document for recording a sale on account
Chapter 3: Journalizing Transactions
design by Dóri Sirály for Prezi
: A form for recording transactions in chronological order
December 14. Bought Supplies on account from Office Stuffs, $800.000. Memorandum No. 1.
Sometimes an entire entry is incorrect & is discovered before the next entry is journalized
Bought and Paid on Account
When cash is paid to the owner for personal use, the amount is journalized in general debit & cash credit
• Received & Paid Cash: Owner
Single Ruling indicates that all the columns are to be added
• Proving & Ruling A Journal Page: End of Month Totals
Section 3-1: Journals
Paid cash for...
• Proving & Ruling A Journal Page: Carried Forward
Starting A New Journal Page
All the columns from the last journal page are totaled & brought forward onto the new journal page
Corrected in a way that does not cause doubts about what the correct information is
When cash is received from the owner as an investment, the amount is journalized in general credit & cash debit
: Recording transactions in a journal
special amount column
general amount column
: information for each transaction recorded in a journal
Double entry accounting
: recording of a debit and credit parts of a transaction
a business paper from which information is obtained for a journal entry
five source documents
All the columns are added & totaled to be carried forward onto the next journal page
Single ruling indicates that columns are to be totaled
Double ruling indicates that that the amounts are totaled & that the sum of debits = the sum of credits
December 2. Paid cash for supplies, $375.000. Check No. 1.
The source document is R for Receipt
December 4. Paid cash for insurance, $400.000. Check No. 2
December 11. Paid cash for rent, $600.000. Check No. 3.
December 11. Paid cash for electric bill, $50.00. Check No. 4.
December 15. Paid cash on account to Office Stuffs, $750.000. Check No. 5.
Find the total of all the columns
Double Ruling indicates that all the columns are totaled & that the debits and credits are equal
debit first line
no cash entry
December 16. Sold services on account to Pizza Rev, $450.000. Sales Invoice No.1.
December 17. Received cash on account from Pizza Rev, $600.000. Receipt No 1.
Sold services and Received cash on account
Cancel an error by neatly drawing a
through the incorrect item
Record correct items on the
lines as the incorrect items, directly above the canceled parts
• Received Cash From Sales
Source Documents (continued)
a form on which a brief message is written describing a transaction
Account title & Post. Ref. is a check mark or astrix
a business form giving written acknowledgment for cash received
Amount is journalized in Sales Credit & Cash Debit
source document for daily sales; totaling all individual sales of the day
The source document is a T for Calculator Tape
By Dianna Sargsyan and Lyna Moreno
never will be in credit side
pay in the future