Journalizing Buying Insurance on account, Paying on Account, Receiving Cash on Account, and Transactions that Affect Owner’s Equity Accounting 1 Chapter 3 Journalizing Transactions Section 2 and 3

Paid Cash for Insurance MAKE T ACCOUNTS Steps ◦ 1. Date – August 4 ◦ 2. Debit- $1200 General debit column (Prepaid insurance) *When you put a transaction in the general column you must write the account title in the account title column. ◦ 3. Credit- $1200 cash credit column ◦ 4. Source document- C2 (Check no.2) in doc no. column.

Bought Supplies on Account MAKE T ACCOUNTS Steps ◦ 1. Date – August 7 ◦ 2. Debit- $500 General debit column (Supplies) *When you put a transaction in the general column you must write the account title in the account title column. ◦ 3. Credit- $500 General credit column (Accounts Payable Supply Depot) *When you put a transaction in the general column you must write the account title in the account title column. ◦ 4. Source document- M1 (Memo No.1) in doc no. column.

Paid cash on account MAKE T ACCOUNTS Steps ◦ 1. Date – August 11 ◦ 2. Debit- $300 General debit column (Accounts Payable- Supply Depot) *When you put a transaction in the general column you must write the account title in the account title column. ◦ 3. Credit- $300 Cash credit column ◦ 4. Source document- C3 (Check No.3) in doc no. column.

Received cash from Sales MAKE T ACCOUNTS Steps ◦ 1. Date – August 12 ◦ 2. Debit- $295 Cash debit column ◦ 3. Credit- $295 Sales credit column * Because both amounts are recorded in special amount columns place a check mark in the account title line and in the post. ref. (chapter 4) ◦ 4. Source document- T12 (Tape No.12) in doc no. column.

Sold services on account MAKE T ACCOUNTS Steps ◦ 1. Date – August 12 ◦ 2. Debit- $350 General debit column (Accounts Receivable -Oakdale School) *When you put a transaction in the general column you must write the account title in the account title column. ◦ 3. Credit- $350 Sales credit column ◦ 4. Source document- S1 (Sales Invoice No.1) in doc no. column.

Paid cash for an expense MAKE T ACCOUNTS Steps ◦ 1. Date – August 12 ◦ 2. Debit- $300 General debit column (rent expense) *When you put a transaction in the general column you must write the account title in the account title column. ◦ 3. Credit- $300 Cash credit column ◦ 4. Source document- C4 (Check No.4) in doc no. column.

Received cash on account MAKE T ACCOUNTS Steps ◦ 1. Date – August 12 ◦ 2. Debit- $200 Cash debit column ◦ 3. Credit- $200 General credit column (Accounts Receivable-Oakdale School) ◦ *When you put a transaction in the general column you must write the account title in the account title column. ◦ 4. Source document- R2 (Receipt No.2) in doc no. column.

Paid cash for personal use MAKE T ACCOUNTS Steps ◦ 1. Date – August 12 ◦ 2. Debit- $125 general debit column (Kim Park, Drawing) ◦ *When you put a transaction in the general column you must write the account title in the account title column. ◦ 3. Credit- $125 Cash credit column ◦ 4. Source document- C6 (Cash No.6) in doc no. column.