Journals, Source Documents, and Recording Entries in a Journal LESSON 3-1 4/19/2017 LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal GREEN

THE SAME BUT DIFFERENT page 62 Still analyze transactions into debit and credit parts Journal A form for recording transactions in chronological order Keeps a permanent record of the transaction Various journals are used Nature of business determines what type is used Journalizing Recording transactions in a journal LESSON 3-1

USING A JOURNAL Entry General journal Information for each transaction recorded in a journal General journal A journal with two amount columns in which all kinds of entries can be recorded LESSON 3-1

A GENERAL JOURNAL page 57 LESSON 3-1

ACCURACY Information for debit and credit parts is recorded in one place Information can be verified by comparing data in the entry with the transaction data LESSON 3-1

CHRONOLGICAL RECORD Transactions are recorded in order by date Information is easy to locate because it is all in one place LESSON 3-1

DOUBLE-ENTRY ACCOUNTING The recording of debit and credit parts of a transaction Each transaction must affect at least two accounts Both parts (debit and credit) are recorded Assures that debits equal credits LESSON 3-1

SOURCE DOCUMENTS A business paper from which information is obtained for a journal entry Accounting concept: Objective evidence A source document must go with every transaction as proof that it occurred Five source documents Checks, sales invoices, receipts, calculator tapes and memorandums LESSON 3-1

CHECK A business form ordering a bank to pay cash from a bank account page 58 A business form ordering a bank to pay cash from a bank account Check #1 is abbreviated C1 LESSON 3-1

SALES INVOICES Invoice Sales invoice page 58 Invoice A form describing the goods or services sold, the quantity, and the price Sales invoice An invoice used for recording a sale on account Sales invoices 12 is abbreviated S12 LESSON 3-1

LESSON 3-1 4/19/2017 RECEIPT page 59 A business form giving written acknowledgement for cash received Used when cash is received for any transaction other than sales Receipt #45 is abbreviated R45 receipt LESSON 3-1 GREEN

CALCULATOR TAPE Businesses collect cash at the time of sales At the end of the day, businesses print daily sales through cash registers or electronic calculators showing the amount of cash received Total sales from this tape are the source document for the sales Saves the business time and space T12 is used for the calculator tape on twelfth of the month calculator tape LESSON 3-1

MEMORANDUM A form on which a brief message is written describing a transaction Used when no other source document is prepared for a transaction or when additional information is needed about a transaction Memorandum #36 is abbreviated M36 memorandum LESSON 3-1

ENTERING TRANSACTIONS INTO A JOURNAL Follow the thinking that was discussed in chapters 1 & 2 Each transaction entry consists of four parts: Date Debit Credit Source document 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. 2 1 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 3-1

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