1. The Accounting Cycle
The General Journal

2. The accounting cycle
Up to this point the accounting cycle for us has been very limited:
Analyze transactions using T – Accounts
Prepare Trial Balance
Create Financial Statements
In this unit we will be completing the entire accounting cycle for a service business, so that you can truly say you could “Do the Books” for any service company!

4. Imagine a company that has 300 ledger accounts…
You have an amount in your cash account for $300 but cannot seem to be able to figure out where the accompanying credit was applied to….
What could you do?
Hopefully you recorded the transaction #,
but this could still take a long time to search for!
We could start recording
transactions with the debits and
credits together……

5. Presenting the……. General journal
The fix for all our problems!

6. Making Journal Entries Enter the page number.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

7. Making Journal Entries Enter the date
Making Journal Entries Enter the date. The month and year goes in the first date column. The day of the month goes in the second date column.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

8. Making Journal Entries Enter the debit account(s).
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

9. Making Journal Entries Enter the debit amount(s).
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

10. Making Journal Entries Enter the credit account(s)
Making Journal Entries Enter the credit account(s). Be sure to indent the account name.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

11. Making Journal Entries Enter the credit amount(s).
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

12. Making Journal Entries Write a short description of the transaction
Making Journal Entries Write a short description of the transaction. Include the source document number if available.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

13. Making Journal Entries Skip a line and start the next transaction
Making Journal Entries Skip a line and start the next transaction. If the transaction occurs in the same month as the previous one, you do not need to re-write the month and year.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

14. Making Journal Entries Enter the debit account(s).
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

15. Making Journal Entries Enter the debit amount(s).
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

16. Making Journal Entries Enter the credit account(s)
Making Journal Entries Enter the credit account(s). Be sure to indent the account name.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

17. Making Journal Entries Enter the credit amount(s).
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

18. Making Journal Entries In this transaction, there are two credit entries.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

19. Making Journal Entries The amounts of the two credit entries equal the debit entry amount.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

20. Making Journal Entries Write a short description of the transaction
Making Journal Entries Write a short description of the transaction. Include the source document number if available. You may use more than one line to write the explanation if necessary.
Chapter 6 – The Journal and Source Documents l Accounting 1, 7th Edition

21. Homework
We are simply now going to “journalize” transactions that we have become used to up to this point Page 115 # 1-3