Journals, Source Documents, and Recording Entries in a Journal

Slides:



Advertisements
Similar presentations
Journalizing Transactions Kayla Wegley
Advertisements

Chapter 3 - Journals, Source Documents, and Recording Entries in a Journal Hand out Notes Sheet!!! LESSON 3-1.
Journalizing Transactions. General Notes If a co. receives cash – it is ALWAYS a debit. If a co. receives cash – it is ALWAYS a debit. If a co. pays cash.
Journals, Source Documents, and Recording Entries in a Journal
Journals, Source Documents, and Recording Entries in a Journal
CENTURY 21 ACCOUNTING © Thomson/South-Western 1 LESSON 3-1 A FIVE-COLUMN JOURNAL page 57.
Journalizing Transactions
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-2 Journalizing Buying Insurance, Buying on Account, and Paying on Account.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
Journalizing Buying Insurance on account, Paying on Account, Receiving Cash on Account, and Transactions that Affect Owner’s Equity Accounting 1 Chapter.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
Journals, Source Documents, & Recording Entries in a Journal
Journals, Source Documents, and Recording Entries in a Journal
Chapter 4 - Journalizing Transactions
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal Original created by M.C. McLaughlin,
Recording Transactions in a General Ledger. Journal – a form for recording transactions in chronological order. Journaling – recording transactions in.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1 How do you record business transactions in a journal and provide objective evidence.
FINANCIAL STATEMENTS Corporation Financial condition is Public information Posted on the internet Posted Quarterly and yearly Company financials: Posted.
The source document for all cash payments. CHECK.
Journalizing Transactions. 2 5 column journal 7. Journals and Journalizing page 56 Journal – a form for recording transactions in chronological order.
LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
Chapter 4 Recording Transactions in a General Journal.
LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
Chapter 3, Section 3 and 4 Accounting I/II.  What order is information recorded in the journal? ◦ Chronological order  What are used as proof that a.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 5 Journals, Source Documents, and Recording Entries in a Journal.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal.
JournalJournal –Form for recording transactions in chronological order JournalizingJournalizing –Recording transactions in a journal JOURNALS AND JOURNALIZING.
Learning Targets © 2014 Cengage Learning. All Rights Reserved. Lesson 3-1 Recording Transactions and the General Journal What: Journalizing Transactions.
GAAP – Generally Accepted Accounting Principles (10) FASB – Financial Accounting Standards Board n GAAP: –Objective Evidence: a source document (piece.
 DEFINE JOURNALIZING TRANSACTION TERMS  IDENTIFY CONCEPTS RELATED TO JOURNALIZING TRANSACTIONS  RECORD IN A FIVE-COLUMN JOURNAL TRANSACTIONS TO SET.
Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO1 Define what a journal is and explain why it is used to record transactions. LO2 Compare.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3 Objectives Define accounting terms related to journalizing transactions Identify.
Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO1 Define what a journal is and explain why it is used to record transactions. LO2 Compare.
Do Now Write down the Normal Balances of the following accounts: Cash
Journalizing Transactions
Journalizing Transactions
LESSON 3-3 5/21/2018 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue.
Journals, Source Documents, and Recording Entries in a Journal
Journals, Source Documents, and Recording Entries in a Journal
LESSON 3-3 5/21/2018 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue.
Journals, Source Documents, and Recording Entries in a Journal
Encore Music Uses five source documents
Chapter Four 11 Words.
Journals, Source Documents, and Recording Entries in a Journal
Journals, Source Documents, and Recording Entries in a Journal
© 2014 Cengage Learning. All Rights Reserved.
Journals, Source Documents, and Recording Entries in a Journal
LESSON 3-2 Examples? Check Receipt Memos Sales invoice Calculator Tape
Hosted by Ms. Appel.
© 2014 Cengage Learning. All Rights Reserved.
Journals, Source Documents, and Recording Entries in a Journal
© 2014 Cengage Learning. All Rights Reserved.
Accounting Chapter 3 Vocabulary.
Journals, Source Documents, and Recording Entries in a Journal
LESSON 3-1 Recording Transactions and the General Journal
© 2014 Cengage Learning. All Rights Reserved.
Journals, Source Documents, and Recording Entries in a Journal
© 2014 Cengage Learning. All Rights Reserved.
Journals, Source Documents, and Recording Entries in a Journal
LESSON 3-3 2/24/2019 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Green.
Journalizing Transactions
Journalizing Transactions
Journals, Source Documents, and Recording Entries in a Journal
Journals, Source Documents, and Recording Entries in a Journal
Journals and Journalizing
Journals, Source Documents,
LESSON 3-3 7/23/2019 LESSON 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Blue.
Journalizing Transactions
Presentation transcript:

Journals, Source Documents, and Recording Entries in a Journal LESSON 3-1 5/15/2018 LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal

Bell Work, 8/17 How did you think the test was yesterday? Did you think anything was unfair? LESSON 3-1

Chapter 3 Objectives Define accounting terms related to journalizing transactions. Identify accounting concepts and practices related to journalizing transactions. Record transactions to set up a business in a five-column journal. LESSON 3-1

Journals and Journalizing Journal – a form for recording transactions in chronological order. The nature of the business and the number of transactions to be recorded determines the kind of journal to be used. Journalizing – recording transactions in a journal. LESSON 2-1

A FIVE-COLUMN JOURNAL page 57 LESSON 3-1

Using a Journal Special amount column – a journal amount column headed with an account title. These columns are used for transactions that occur frequently. General amount column – a journal amount column that is not headed with an account title. Information recorded in a journal includes the debit and credit parts of each transaction recorded in one place. The information can be verified by comparing the data in the journal with the transaction data. LESSON 3-1

Transactions are recorded in a journal in order by date. Chronological Order Transactions are recorded in a journal in order by date. This makes transactions easy to locate. LESSON 3-1

Double Entry Accounting Entry – Information for each transaction recorded in a journal. Double-entry accounting – the recording of debit and credit parts of a transaction. In double-entry accounting each transaction affects at least two accounts. Both the debit and credit parts are recorded, reflecting the dual effect of each transaction on business’s records. Double entry accounting assures that debits equal credits. LESSON 2-1

Source Documents Source document – a business paper from which information is obtained for a journal entry. Each transaction is described by a source document that proves that the transaction did occur. The accounting concept evidence is applied when a source document is prepared for each transaction. Amounts recorded MUST be accurate and true. Check – a business form ordering a bank to pay cash from a bank account. The source document for cash payments is a check. LESSON 3-1

CHECKS page 58 LESSON 3-1

Sales Invoices Invoice – a form describing the goods or services sold, the quantity, and the price. Sales invoice – An invoice used as a source document for recording a sale on account. A sales invoice is also referred to as a sales ticket or a sales slip. A sales invoice is prepared in duplicate. The original is given to the customer and the copy is used as the source document for the sale on account transaction. Sales invoices are pre-numbered in sequence to help account for all sales invoices. LESSON 2-1

SALES INVOICES page 58 LESSON 3-1

Other Source Documents Receipt – A business form giving written acknowledgement for cash received. Receipts are prenumbered to help account for all receipts. Memorandum – a form on which a brief message is written describing a transaction. Used when an additional explanation is needed about a transaction. LESSON 3-1

OTHER SOURCE DOCUMENTS LESSON 3-1 5/15/2018 OTHER SOURCE DOCUMENTS page 59 receipt calculator tape memorandum LESSON 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 3 2 4 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. LESSON 3-1

Example from page. 60 August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1. This is how you will journalize transactions from here on out in this class and if you go to college: Date Account Title Amount 8/1 Cash 5,000 Kim Park, Capital LESSON 3-1

PAID CASH FOR SUPPLIES page 61 August 3. Paid cash for supplies, $275.00. Check No. 1. 1 2 3 4 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. LESSON 3-1

Example from page. 61 August 3. Paid cash for supplies, $275.00. Check No. 1 This is how you will journalize transactions from here on out in this class and if you go to college: Date Account Title Amount 8/3 Supplies 275 Cash LESSON 3-1

Review for Section 3-1 In what order are transactions recorded in a journal? Why are source-documents important? List the four parts of a journal entry. LESSON 3-1

Chapter 3-1 Assignments Work Together 3-1 On Your Own 3-1 Application Problem 3-1 LESSON 3-1

LESSON 3-2 Journalizing Buying Insurance, Buying on Account, and Paying on Account Objectives Identify accounting concepts and practices related to journalizing transactions. Record transactions to set up a business. Record transactions to buy insurance for cash and supplies on account. LESSON 3-1

PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1,200.00. 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

BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $500.00. 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

PAID CASH ON ACCOUNT page 65 August 11. Paid cash on account to Supply Depot, $300.00. 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

Chapter 3-2 Assignments Work Together 3-2 On Your Own 3-2 Application Problem 3-2 LESSON 3-1

Lesson 3-3 Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account Objectives Identify accounting concepts and practices related to journalizing transactions. Record transactions that affect owner’s equity and receiving cash on account. LESSON 3-1

RECEIVED CASH FROM SALES page 67 August 12. Received cash from sales, $295.00. 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

SOLD SERVICES ON ACCOUNT page 68 August 12. Sold services on account to Oakdale School, $350.00. 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

PAID CASH FOR AN EXPENSE page 69 August 12. Paid cash for rent, $300.00. 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

RECEIVED CASH ON ACCOUNT page 70 August 18. Received cash on account from Oakdale School, $200.00. 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

PAID CASH TO OWNER FOR PERSONAL USE page 71 August 18. Paid cash to owner for personal use, $125.00. 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

Chapter 3-3 Assignments Work Together 3-3 On Your Own 3-3 Application Problem 3-3 LESSON 3-1

LESSONG 3-4 Proving and Ruling a Journal 5/15/2018 LESSON 3-4 Proving and Ruling a Journal GREEN

Section 4 Objectives Define accounting terms related to journalizing transactions. Identify accounting concepts and practices related to journalizing transactions. Prove and rule a five-column journal and prove cash. LESSON 3-4

PROVING A JOURNAL PAGE 1 2 3 1. Add each of the amount columns. 2. Add the debit column totals, and then add the credit column totals. 3. Verify that the total debits and total credits are equal. LESSON 3-4

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

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

PROVING AND RULING A JOURNAL AT THE END OF A MONTH page 75 1 2 3 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. 5. Rule double lines. LESSON 3-4

Proving Cash Proving cash- determining that the amount of cash agrees with the accounting records. Cash can be proved at any time during the month. Cash is always proved at the end of the month. How it is done: Cash on hand at the beginning of the month…...…..xx + total cash received during the month…………......xx Total…………………………………………………xx -Total cash paid during the month…..………………xx Equals cash balance at end of the month……………xx LESSON 3-1

STANDARD ACCOUNTING PRACTICES page 77 1 4 5 2 3 6 7 8 9 LESSON 3-4

Standard Accounting Practices If an error is recorded, cancel the error by neatly drawing a line through the incorrect item. Write the correct item immediately above the canceled item. If an entire entry is incorrect, draw neat lines through all parts of the incorrect entry. Journalize the entry correctly on the next blank line. If several incorrect entries are recorded after an incorrect entry is made, draw neat lines through all incorrect parts of the entry. Record the correct items on the same lines as the incorrect items, directly above the canceled parts. Account titles should typically be written in full, but if there is not enough space, accounts may be abbreviated. (PPI, A/R, A/P) LESSON 3-1

Standard Accounting Practices 5. Dollars and cents signs are not used when writing amounts on ruled accounting paper. 6. Two zeros are written in the cents column when an amount is in even dollars, when using ruled accounting paper. 7. A single line is ruled across amount columns to indicate a calculation such as addition. 8. A double line is ruled across amount columns to indicate that the amounts are totals. In a journal, the double line shows that the debit side equals the credit side. 9. Neatness is very important in accounting records so that there is never any doubt about what information has been recorded. LESSON 3-1

Chapter 3-4 Assignments Work Together 3-4 On Your Own 3-4 Application Problem 3-4 Application Problem 3-5 LESSON 3-4