LESSON 3-1

1. LESSON 3-1 Journals, Source Documents, and Recording Entries in a Journal • Identify the steps in which transactions are recorded in a journal. • Explain the importance of source-documents. • List the four parts of a journal entry.

2. Competency: Understanding the Accounting Cycle for a Service Business • Objectives: • 36 Use source documents to journalize transactions. • 38 Prepare customer invoices for a service business. LESSON 3-1

3. Chapter 3 Objectives • Define accounting terms related to journalizing transactions. • Identify accounting concepts and practices related to journalizing transactions. • Record transactions to set up a business in a five-column journal. • Record transactions to buy insurance for cash and supplies on account in a five-column journal. • Record transactions that affect owner’s equity and receiving cash on account in a five-column journal. • Prove and rule a five-column journal and prove cash. LESSON 3-1

4. Journal – a form for recording transactions in chronological order. • Journalizing – recording transactions in a journal. • Special amount column – a journal amount column headed with an account title. • General amount column – a journal amount column that is not headed with an account title. LESSON 2-1

5. Entry – Information for each transaction recorded in a journal. • Double-entry accounting – the recording of debit and credit parts of a transaction. • Source document – a business paper from which information is obtained for a journal entry. • Check – a business form ordering a bank to pay cash from a bank account. LESSON 2-1

6. 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. • Receipt – A business form giving written acknowledgement for cash received. • Memorandum – a form on which a brief message is written describing a transaction. LESSON 2-1

7. A FIVE-COLUMN JOURNAL page 57 LESSON 3-1

8. CHECKS page 58 LESSON 3-1

9. SALES INVOICES page 58 LESSON 3-1

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

11. 3 3 RECEIVED CASH FROM OWNER AS AN INVESTMENT page 60 August 1. Received cash from owner as an investment, $5,000.00. Receipt No. 1. 1 2 4 1. Write the date in the Date column. 2. Write the debit amount in the Cash Debit column. 3. Record the credit amount in the General Credit column. Write the title of the account in the Account Title column. 4. Write the source document number in the Doc. No. column. LESSON 3-1

12. 2 2 PAID CASH FOR SUPPLIES page 61 August 3. Paid cash for supplies, $275.00. Check No. 1. 1 3 4 1. Write the date in the Date column. 2. Record the debit amount in the General Debit column. Write the title of the account in the Account Title column. 3. Write the credit amount in the Cash Credit column. 4. Write the source document number in the Doc. No. column. LESSON 3-1

13. journal journalizing special amount column general amount column entry double-entry accounting source document check invoice sales invoice receipt memorandum DEFINE TERMS REVIEW page 62 In your Chapter 3Terms Word Document and SaveAS Chapter3TermsYourName LESSON 3-1

14. Exit Ticket for Chapter 3-1 In a Word Document, SaveAS: Chapter3-1AYUYourName Drop a copy in my InBox today before you leave! • In what order are transactions recorded in a journal? • Why are source-documents important? • List the four parts of a journal entry. LESSON 3-1

15. Chapter 3-1 Assignments Complete on Aplia • Work Together 3-1 • On Your Own 3-1 • Application Problem 3-1 LESSON 3-1