1. Journalizing Transactions
Chapter 3
Journalizing Transactions

2. Recording Transactions and the General Journal
3.1
Recording Transactions and the General Journal

3. Journals and Journalizing
T-Accounts and accounting equation do not match with amount of transactions & accounts
Journal- A form for recording transactions in chronological order
Journalizing- Recording transactions in a journal
Use journal best for business needs-record entries everyday
Journals and Journalizing

4. In a Journal… Accuracy Chronological Order-By Date
Entry-Information for each transaction recorded in a journal
Double-Entry Recording- Recording of debit and credit parts of a transaction
In a Journal…

5. Business paper from which info is obtained for a journal entry
Concept: Objective Evidence-source document for every transaction
Source Documents

6. Check- A business form ordering a bank to pay cash from a bank account
Check ALWAYS used for “paid cash”
Invoice – A form describing the goods or services sold, the quantity, the price, and the terms of sale
Sales Invoice-used for recording a sale on account- sales ticket or sales slip
Source Documents

7. Source Documents Receipt-written acknowledgement for cash received
Memorandum-Brief message is written to describe a transaction
Calculator tapes labeled with T and date
Source Documents

8. Date
Debit
Credit
Source Document
Journal Entries

9. Staring a New Journal Page
3.4
Staring a New Journal Page

10. If do not have 2 spaces at bottom of page; start new journal page
Write new page number at top of new journal page

11. Correcting Errors in Journal Entries
If entry already journalized-draw lines through incorrect parts
Journalize collect entry
If only numbers wrong; draw line through numbers and write above
Correcting Errors in Journal Entries