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

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 ( )

JOURNAL PAGE 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

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

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 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 August 3-- Port City Supply Supplies Port City Supply Supplies Kim Park August 3, Two hundred seventy-five and no 100 CHECKS CHECKS

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

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

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

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

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

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.

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

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.

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

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

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

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

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

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

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

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

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 2Debit 4SourceDocument 1Date 12 T S1 A/R Oakdale School R2 A/R Oakdale School Credit 1 RECEIVED CASH ON ACCOUNT RECEIVED CASH ON ACCOUNT Cash A/R Oakdale School

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 3Credit 4SourceDocument 1Date 12 T S1 A/R Oakdale School R2 A/R Oakdale School Debit 12 C K Park,Drawing 1 PAID CASH TO OWNER FOR PERSONAL USE PAID CASH TO OWNER FOR PERSONAL USE Kim Park, Drawing Cash

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 12 C4 Rent Expense S1 C5 R2 C A/R L. Rohe Utilities Expense A/R L. Rohe N.Derner,Drawing T13 Journalizing that effect owner’s equity End of Lesson REVIEW REVIEW WORK TOGETHER 3-3 cont.

Add each Amount column Add debit totals And credit totals Column General Sales Cash Totals Debit Debit Column Totals Credit Credit Column Totals $3, , , , $ 5, , , , Totals equal PROVING A JOURNAL PAGE PROVING A JOURNAL PAGE

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 Single Rule 2Date 20-- Aug 1 R1 Kim Park, Capital Supplies C1 4 C2 Prepaid Insurance CarriedForward 4 Column Totals 5DoubleRule 20 Supplies A/P Thomas Supply Co. Carried Forward M RULING A JOURNAL PAGE RULING A JOURNAL PAGE

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

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT 1 Single Rule 2Date 20-- Aug 20 Brought Forward T Totals 4 Column Totals 5DoubleRule 31 Misc. Expense Totals M PROVING AND RULING A JOURNAL PAGE AT THE END OF THE MONTH PROVING AND RULING A JOURNAL PAGE AT THE END OF THE MONTH T31

Add each Amount column Add debit totals And credit totals Column General Sales Cash Totals Debit Debit Column Totals Credit Credit Column Totals $4, , , , $ 5, , , , Totals equal PROVING CASH PROVING CASH Prove page 2 of the Journal

Cash on hand at the beginning of the month………………… , , , 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, , , ,964.00

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASH SALES CREDIT DEBIT CREDIT C K. Park, Drawing Totals C C23 STANDARD ACCOUNTING PRACTICES Rent Expense Repair Expense Misc. Expense T28 C Supplies

JOURNAL PAGE DATEACCOUNT TITLE DOC. NO. POST REF. GENERALCASHSALES CREDIT DEBIT CREDIT C6 S2 C7 N.Derner,Drawing A/R L. Rohe N.Derner,Drawing Carried Forward 1 Proving and ruling a Journal End of Lesson REVIEW REVIEW WORK TOGETHER 3-4 cont A/R L. Rohe R

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