Journalizing Transactions

Presentation Transcript

1. Journalizing Transactions

   Chapter 5
2. Terms to know Journal: form for recording transactions in chronological order. 5 columns General Debit General Credit Sales Credit Cash Debit Cash Credit Journalizing: recording transactions in a journal.
3. Amount Columns Special Amount Columns: A journal amount column that is headed with an account title. Used for frequently occurring transactions. Sales Credit, Cash Debit, Cash Credit General Amount Columns: A journal amount column that is NOT headed with an account title. Sales Credit, Cash Debit, Cash Credit
4. Terms to know Entry: information for each transaction recorded in a journal. Double Entry Accounting: recording of debit and credit parts of a transaction. Each transaction affects 2 accounts
5. Source Documents Source Document: a business paper from which information is obtained for a journal entry. Checks Calculator Tapes Receipts Memorandums
6. Check (C) A business form ordering a bank to pay cash from a bank account. Used for all CASH payments. Like personal checks, business checks are prenumbered. Illustration, p.95
7. Calculator Tapes (T) At end of day, some businesses use a printing calculator to total the amount of cash received from sales from the entire day. It’s the total of all individual sales for the day. Illustration p.75
8. Receipts (R) A business form giving written acknowledgement for cash received. Used for cash receipts transactions except for sales. Ex: Investment Illustration on p.76
9. Memorandums (M) A form on which a brief description of the transaction is written. Used to provide additional explanations. Like checks, these are prenumbered. Illustration on p.76
10. Examples Transaction #1: Received cash from owner as an investment, $10,000. R1 Write the date Write the debit amount Write the credit amount Record the source document
11. Examples Transaction #2: Paid cash for supplies, $1,577. C1 Write the date Write the debit amount Write the credit amount Record the source document
12. Examples Transaction #3: Paid cash for Insurance, $1,200. C2 Write the date Write the debit amount Write the credit amount Record the source document
13. Examples Transaction #4: Bought supplies on account from BCS, $2,720. M1 Write the date Write the debit amount Write the credit amount Record the source document
14. Examples Transaction #5: Paid cash on account to BCS, $1,360. C3 Write the date Write the debit amount Write the credit amount Record the source document
15. Examples Transaction #6: Received cash from sales, $525. Write the date Write the debit amount Write the credit amount Record the source document
16. Examples Transaction #7: Paid cash for rent, $250. C4 Write the date Write the debit amount Write the credit amount Record the source document
17. Examples Transaction #8: Paid cash to owner for personal use, $100. C6 Write the date Write the debit amount Write the credit amount Record the source document
18. Prove Journal Prove a journal OR verify that debits = credits. Add each amount column Add the debit amount totals, and then add the credit amount totals Verify that the total debits = total credits
19. Rule Journal Rule a journal. Rule a single line across all amount columns On next line, write the date Write the word TOTALS Write each column total below the single line Rule double lines below the amount column totals Rule a journal… At the end of the month Or when a page is full
20. Games http://www.quia.com/jg/521011.html Flashcards http://quizlet.com/6907433/accounting-general-journal-9e-chapter-03-flash-cards/