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

2. Journals and Journalizing A form for recording transactions in chronological order is called a journal. Recording transactions in a journal is called journalizing. LESSON 3-1 2

3. General Journal Information for each transaction recorded in a journal is called an entry. A journal with two amount columns in which all kinds of entries can be recorded is called a general journal. LESSON 3-1 3

4. A GENERAL JOURNAL LESSON 3-1 4 page 57

5. General Journal Accuracy Chronological Record Double-Entry Accounting The recording of debit and credit parts of a transaction is called double-entry accounting. In double-entry accounting, each transaction affects at least two accounts. Both the debit and credit parts are recorded, reflecting the dual effect of each transaction on the business’s records. Double-entry accounting assures that the debits equal the credits. Source Documents A business paper from which information is obtained for a journal entry is called a source document. Each transaction is described by a source document that proves that the transaction did occur. Five types of source documents 1.Checks 2.Sales Invoices 3.Receipts 4.Calculator Tapes 5.Memorandums LESSON 3-1 5

6. Check-a business form ordering a bank to pay cash from a bank account CHECKS LESSON 3-1 6 page 58

7. Invoices-A form describing the goods or services sold, the quantity, and the price Sales Invoices-(sales ticket; sales slip) An invoice used as a source document for recording a sale on account SALES INVOICES LESSON 3-1 7 page 58

8. Other Documents Receipts-A business form giving written acknowledgement for cash received Memorandums-A form on which a brief message is written describing a transaction LESSON 3-1 8

9. OTHER SOURCE DOCUMENTS LESSON 3-1 9 page 59 memorandum calculator tape receipt

10. RECEIVED CASH FROM OWNER AS AN INVESTMENT LESSON 3-1 10 2.Write the title of the account debited. Write the debit amount. page 60 August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1. 1.Write the date in the Date column. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 1 4 22 33

11. PAID CASH FOR SUPPLIES LESSON 3-1 11 page 61 August 3. Paid cash for supplies, $275.00. Check No. 1. 1 4 22 1.Write the date in the Date column. 4.Write the source document number in the Doc. No. column. 3.Write the title of the account credited. Write the credit amount. 2.Write the title of the account debited. Write the debit amount. 33

12. TERMS REVIEW journal journalizing entry general journal double-entry accounting source document check invoice sales invoice receipt memorandum LESSON 3-1 12 page 62

13. LESSON 3-2 Journalizing Buying Insurance, Buying on Account, and Paying on Account

14. 14 LESSON 3-2 PAID CASH FOR INSURANCE page 63 August 4. Paid cash for insurance, $1,200.00. Check No. 2. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 1 4 22 33

15. 15 LESSON 3-2 BOUGHT SUPPLIES ON ACCOUNT page 64 August 7. Bought supplies on account from Supply Depot, $500.00. Memorandum No. 1. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 14 22 33

16. 16 LESSON 3-2 PAID CASH ON ACCOUNT page 65 August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 14 22 33

17. LESSON 3-3 Journalizing Transactions That Affect Owner ’ s Equity and Receiving Cash on Account

18. 18 LESSON 3-3 RECEIVED CASH FROM SALES page 68 August 12. Received cash from sales, $295.00. Tape No. 12. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 41 33 22

19. 19 LESSON 3-3 SOLD SERVICES ON ACCOUNT page 69 August 12. Sold services on account to Oakdale School, $350.00. Sales Invoice No. 1. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 41 33 22

20. 20 LESSON 3-3 PAID CASH FOR AN EXPENSE page 70 August 12. Paid cash for rent, $300.00. Check No. 4. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 41 33 22

21. 21 LESSON 3-3 RECEIVED CASH ON ACCOUNT page 71 August 18. Received cash on account from Oakdale School, $200.00. Receipt No. 2. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 41 33 22

22. 22 LESSON 3-3 PAID CASH TO OWNER FOR PERSONAL USE page 72 August 18. Paid cash to owner for personal use, $125.00. Check No. 6. 1.Write the date in the Date column. 2.Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the credit amount. 4.Write the source document number in the Doc. No. column. 41 33 22

23. LESSON 3-4 Starting a New Journal Page

24. 24 LESSON 3-4 A COMPLETED JOURNAL PAGE page 74

25. 25 LESSON 3-4 STARTING A NEW GENERAL JOURNAL PAGE page 75 2

26. 26 LESSON 3-4 STANDARD ACCOUNTING PRACTICES page 76 1 3 4 6 2 5