Encore Music Uses five source documents Journal Source Documents CONCEPT: Objective Evidence When a source document is prepared for each transaction. Encore Music Uses five source documents Checks Sales invoices Receipts Calculator tape memorandums

Encore Source Documents Check A business form ordering a bank to pay cash from a bank account. Invoice Form describing the goods or services sold, the quantity, and the price (sales Invoice, sales ticket, or sale slip). Receipt A business form giving written acknowledgement for cash received Memorandum A form on which a brief message is written describing a transaction Calculator Tapes Register tape

CHECKS Lesson 4-1, page 67

SALES INVOICES Lesson 4-1, page 67

OTHER SOURCE DOCUMENTS Lesson 4-1, page 68

RECEIVED CASH FROM OWNER AS AN INVESTMENT August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1. Lesson 4-1, page 69

STEPS- JOURNALIZING Step 1: Date-write the date Step 2: Debit Step 3 Credit Step 4 Source Document

RECEIVED CASH FROM OWNER AS AN INVESTMENT August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1. Barbara Treviño, Capital Cash 1. Which accounts are affected? Cash Barbara Treviño, Capital Debit Normal Balance 10,000.00 2. How is each account classified? Cash is an asset account. Barbara Treviño, Capital is an owner’s equity account.  Credit Normal Balance 3. How is each classification changed? Assets are increased. Owner’s equity is increased. 10,000.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Owner’s equity accounts increase on the credit side. Lesson 4-1, page 69

A FIVE-COLUMN JOURNAL Lesson 4-1, page 66

RECEIVED CASH FROM OWNER AS AN INVESTMENT August 1. Received cash from owner as an investment, $10,000.00. Receipt No. 1. 1 2 4 3 1. Write the date. 2. Debit Cash. 3. Credit Barbara Treviño, Capital. 4. Write the source document number. Lesson 4-1, page 69

PAID CASH FOR SUPPLIES 1 2 4 3 1. Write the date. 2. Debit Supplies. 3. Credit Cash. 4. Write the source document number. Lesson 4-1, page 70

TERMS REVIEW journal journalizing special amount column general amount column entry double-entry accounting source document check invoice sales invoice receipt memorandum Lesson 4-1, page 71