1. Section 3-1 Journals, Source Documents, and Recording Entries in a Journal

2. Journals and Journalizing
Journal- A more permanent form for recording transactions in chronological order.
Journalizing- Process of recording transactions in a journal.

3. Using a Journal
Entry- Information for each transaction is recorded in a journal.
General Journal- A journal with two amount columns in which all kinds of entries can be recorded.

4. Terms Continued…
Double-entry Accounting- The recording of debit and credit parts of a transaction.
*In double-entry accounting, each transaction affects at least two accounts. (Debits must equal credits)!

5. Keeping Track of it All!
Source Document- A business paper from which information is obtained for a journal entry. Each transaction is described by a source document that proves that the transaction did occur.

6. *TechKnow Computers makes all cash payments by check.
What examples source documents can you think of? *TechKnow Computers uses six types of source documents.
Check- A business form ordering a bank to pay cash from a bank account. A check stub is prepared to maintain the information of the issuing business.
*TechKnow Computers makes all cash payments by check.

7. Types of Source Documents
Invoice- A form describing the goods or services sold, the quantity, and the price.
Sales Invoice- An invoice used as a source document for recording a sale on account.
It is also referred to as a sales ticket/sales slip.
A sales invoice is prepared in duplicate.
The original goes to the customer.

8. More Source Documents!
Receipt- A business form giving written acknowledgement for cash received from transactions other than sales.
Memorandum- A form on which a brief message is written describing a transaction. Used when an additional explanation is needed about a transaction.
Calculator Tape – keeps the total amount of the sales for a day.

9. Source Document Codes Doc. No.
C = Check M = Memorandum R = Receipt S = Sales Invoice T = Calculator Tape
It is a customary accounting practice to always record the debited account before the credited account!

10. How to Journalize Transactions
Information for each transaction recorded in a journal is an entry.
An Entry Consists of Four Parts:
Date
Debit
Credit
Source Document

11. Process for Journalizing
Record the date in the date column. In the first entry box, the year and month are included. All dates to follow just contain the day.
The date is only recorded on the first line of an entry.
Write the title of the account debited in the account title section

12. Process Concluded Write the debit amount in the debit column
Indent about 1 centimeter and write the title of the account credited in the account title section
Write the credit amount in the credit column
On the first line of the entry, write source document reference in the Doc. No. column