1. Recording Transactions in a General Journal
Chapter 6

2. The Steps of the Accounting Cycle
Collect and verify source documents
Analyze each transaction
Journalize each transaction
Post to ledger
Prepare a trial balance
Prepare a worksheet
Prepare financial statements
Journalize and post closing entries
Prepare a post-closing trial balance
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3. Step 1: Collect and Verify Source Documents
A source document the paper evidence of the transaction.
Invoice
Receipt
Memorandum
Check stub
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4. Step 2: Analyzing Business Transactions
Analyze the source document to
Determine the affected
Determine debits and credits

5. Step 3: Recording Business Transactions in a Journal
Journal – a record of the transactions of a business kept in chronological order
Journalizing – the process of recording business transactions in a journal

6. The Accounting Period
An accounting period of 12 months is called a fiscal year.
If the fiscal year for a business begins on January 1 and ends on December 31, it is called a calendar year accounting period.
Some businesses have different fiscal years. A school district runs July 1 through June 30 and department stores often run February 1 through January 31.
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7. Recording a General Journal Entry
General Journal – an all purpose journal in which all of the transactions of a business may be recorded.

8. Transaction 1

9. Transaction 2

10. Transaction 3

11. Transaction 4

12. Transaction 5

13. Transaction 6

14. Transaction 7

15. Transaction 8

16. Transaction 9

17. Transaction 10

18. Transaction 11

19. Transaction 12

20. Transaction 13

21. Transaction 14

22. Making Journal Corrections