1. Journals, Source Documents, and Recording Entries in a Journal
LESSON 3-1
5/21/2018
LESSON 3-1
Journals, Source Documents, and Recording Entries in a Journal
GREEN

2. Terms Define the following terms: Check Invoice sales invoice Receipt
Memorandum
Journal
Journalizing
Entry
general journal
double-entry accounting
source document
LESSON 3-1

3. TERMS REVIEW
page 62
Journal – a form for recording transactions in chronological order
Journalizing- recording transactions in a journal
Entry- Information for each transaction
General journal- a journal with 2 amount columns
Double-entry accounting- the recording of the debit and credit part of the transaction
Source document- a business paper from which information is obtained for a journal entry
LESSON 3-1

4. Check- a business form ordering a bank to pay cash from a bank account
Invoice- a form describing goods or services sold, quantity, and prices
Sales invoice- invoice used as a source document for recording a sale on account
Receipt- a business form giving written acknowledgement for cash received
Memorandum- a form on which a brief message is written describing a transaction
LESSON 3-1

5. A GENERAL JOURNAL
page 57
LESSON 3-1

6. CHECKS
page 58
LESSON 3-1

7. SALES INVOICES
page 58
LESSON 3-1

8. OTHER SOURCE DOCUMENTS
LESSON 3-1
5/21/2018
OTHER SOURCE DOCUMENTS
page 59
receipt
calculator tape
memorandum
LESSON 3-1
GREEN

9. Steps to Journalize a Transaction
page 60
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

10. RECEIVED CASH FROM OWNER AS AN INVESTMENT
page 60
August 1. Received cash from owner as an investment, $5, 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

11. PAID CASH FOR SUPPLIES
page 61
August 3. Paid cash for supplies, $ 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

12. LESSON 3-2
5/21/2018
LESSON 3-2
Journalizing Buying Insurance, Buying on Account, and Paying on Account
GREEN

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

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

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

16. LESSON 3-3
5/21/2018
LESSON 3-3
Journalizing Transactions That Affect Owner’s Equity and Receiving Cash on Account
Green

17. RECEIVED CASH FROM SALES
page 68
August 12. Received cash from sales, $ 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

18. SOLD SERVICES ON ACCOUNT
page 69
August 12. Sold services on account to Oakdale School, $ 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

19. PAID CASH FOR AN EXPENSE
page 70
August 12. Paid cash for rent, $ 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

20. RECEIVED CASH ON ACCOUNT
page 71
August 18. Received cash on account from Oakdale School, $ 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

21. PAID CASH TO OWNER FOR PERSONAL USE
page 72
August 18. Paid cash to owner for personal use, $ 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

22. LESSONG 3-4 Starting a New Journal Page
5/21/2018
LESSON 3-4
Starting a New Journal Page
GREEN

23. A COMPLETED JOURNAL PAGE
LESSON 3-4

24. STARTING A NEW GENERAL JOURNAL PAGE2
LESSON 3-4

25. STANDARD ACCOUNTING PRACTICES
page 76
If an error is recorded, cancel the error by neatly drawing a line through the incorrect item. Write the correct item immediately above the cancelled item.
If an entire entry is incorrect, draw neat lines through all parts of the incorrect entry. Journalize the entry on the next blank lines.
If there are correct entries recorded after the incorrect and the next blank lines are several entries later, Draw neat lines through all incorrect parts of the entry and record the correct items directly above the canceled parts.
Words in accounting records are written in full when space permits. Words may be abbreviated when space is limited. Write legibly.
LESSON 3-4

26. STANDARD ACCOUNTING PRACTICES
page 76
Dollars and cents signs and decimal points are not used when writing on ruled accounting paper.
Two zeros are written in the cents column when an amount is in even dollars.
Neatness is very important in accounting records so that there is never any doubt about what information has been recorded.
LESSON 3-4

27. STANDARD ACCOUNTING PRACTICES
page 76 4 2 6 3 1 5
LESSON 3-4