1. CHAPTER 6
Journalizing 2 2

2. Accounting Cycle Journalizing throughout the accounting period
Source Documents
Closing
Journalizing
Accounting
Cycle
at the end of the
accounting period
Posting
Financial
Statement
Trial Balance
Adjusting

3. Source Documents Source Documents cash receipt credit card receipts
cancelled checks
invoices
deposit slips
notes for loans
time cards
purchase order
check stub
cash register tape,
payment stubs for interest
After
jour
nali
zing
Filed to verify
the transact

4. the chronological record of business transactions
Journals
the chronological record of business transactions ?
Classification

5. Special-Purpose Journals
Journalizing
General Journal
Special-Purpose Journals
purchases journal
sales journal,
cash receipts journal,
cash payments journal

6. Now, let’s look at an example of
Illustration of Journalizing
Now, let’s look at an example of
George Ross
Photocopy
Company

7. Illustration of Journalizing
March 3
George Ross invested
additional $20,000
in his own
photocopy company.

8. Investment in business
General Journal
Date
Description
Post.
Ref.
Debit
Credit
20XX
Cash
$20,000
Mar. 3
111
George Ross, Capital
$20,000
311
Investment in business

9. Illustration of Journalizing
March 6
Rented an office,
paying a year’s
rent in advance,
$4,800.

10. General Journal Prepaid Rent $4,800 Mar. 6 121 Cash $4,800 111
Date
Description
Post.
Ref.
Debit
Credit
20XX
Prepaid Rent
$4,800
Mar. 6
121
Cash
$4,800
111
Paying the rent in
advance

11. Illustration of Journalizing
March 7
Purchased office equipment from Hougas Equipment Co. for $5,300, paying $2,300 in cash and agreed to pay the rest next month.

12. General Journal Office Equipment Mar. 7 $5,300 141 Cash 111 $2,300
Date
Description
Post.
Ref.
Debit
Credit
20XX
Office Equipment
Mar. 7
$5,300
141
Cash
111
$2,300
Accounts Payable
211
3,000
Partial payment of
office equipment.

13. Illustration of Journalizing
March 19: Performed a service by printing price lists for Ward Fashion Company and collected a fee of $3,400.

14. General Journal Cash $3,400 Mar. 19 111 Photocopy Fees Earned $3,400
Date
Description
Post.
Ref.
Debit
Credit
20XX
Cash
$3,400
Mar. 19
111
Photocopy Fees Earned
$3,400
311
Performed a service
and collected fees.

15. Illustration of Journalizing
March 24: George Ross withdrew $980 from the business for personal living expenses.

16. General Journal $980 Mar. 24 311 George Ross, Withdrawals Cash $980
Date
Description
Post.
Ref.
Debit
Credit
20XX
$980
Mar. 24
311
George Ross, Withdrawals
Cash
$980
111
Withdrew money
from the business.

17. Illustration of Journalizing
March 25
Paid the secretary salary, $1,100.

18. General Journal $1,100 Mar. 25 131 Office Salary Expense Cash $1,100
Date
Description
Post.
Ref.
Debit
Credit
20XX
$1,100
Mar. 25
131
Office Salary Expense
Cash
$1,100
111
Paid the secretary
the salary

19. Illustration of Journalizing
March 29 Received and paid the
utility bill
of $230.

20. Paid the utility expense.
General Journal
Date
Description
Post.
Ref.
Debit
Credit
20XX
$230
Mar. 29
521
Utility Expense
Cash
$230
111
Paid the utility expense.

21. Illustration of Journalizing
March Received a telephone bill, $120.

22. General Journal $120 Mar. 31 531 Telephone Expense Accounts Payable
Date
Description
Post.
Ref.
Debit
Credit
20XX
$120
Mar. 31
531
Telephone Expense
Accounts Payable
$120
221
Received and not paid
the telephone bill. .

23. WE ARE SAILING RIGHT ALONG!!