1. Journalizing Transactions
CHAPTER 3

2. Standards
D - Analyze, journalize, and post transactions to general & subsidiary ledgers.
D – Identify, describe, evaluate and synthesize the essential ideas in the text.
1.1.11F – Identify and apply key terms.
A – Develop and use computation concepts, operations, and procedures with real numbers.

3. Objectives Identify accounting practices related to journalizing.
Record transactions in a journal.
Prove and rule a five-column journal and prove cash.
Define accounting terms.

4. Journalizing Is the process of recording transactions in a journal.
5-column w/special amount columns
Double-entry accounting – ensures d = c
Each transaction affects at least 2 accounts
Provides:
Accuracy
A chronological record
A permanent record

5. 5-Column Journal

6. Source Documents
Are “Objective Evidence” – proof that a transaction occurred.
5 types:
Checks (C) – pay cash from a bank account
Sales Invoice (S) – aka – sales slip, sales ticket, or bill – used when services sold on account to AR
Receipts (R) – acknowledgement of cash received
Memorandum (M) – used when no other source document is prepared
Tape (T) – used to total daily sales

7. Examples of Source documents
Check
Sales
Invoice

8. Examples of Source Documents
receipt
tape
memorandum

9. Journalizing an Entry 4 Steps: Record date Record account title
Month – only 1st entry per page
Year – only 1st entry per page
Day – every transaction
Record account title
Record source document
Record debit & credit amounts

10. RECEIVED CASH FROM OWNER AS AN INVESTMENT
page 60
August 1. Received cash from owner as an investment, $5, Receipt No. 1. 1 2 3 4 4
1. Write the date in the Date column.
2. Write the account title affected.
3. Write the source document number in the Doc. No. column.
4. Record the debit and credit amount in the correct columns.

11. PAID CASH FOR SUPPLIES
page 61
August 3. Paid cash for supplies, $ Check No. 1. 1 2 4 4 3
1. Write the date in the Date column.
2. Write the account title affected.
3. Write the source document number
4. Record the debit and credit amounts in the correct columns.