Download Lesson 3-1 - Public Schools of Robeson County

LESSON 3-1
Journals, Source
Documents, and
Recording Entries in a
Journal
Original created by M.C. McLaughlin, Thomson/South-Western
Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School
CENTURY 21 ACCOUNTING © Thomson/South-Western
2
Review
Transactions are analyzed into debit
& credit parts before information is
recorded.
A form for recording transaction in
chronological order is called a
journal.
Recording transactions in a journal
is called journalizing.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
3
Journals & Journalizing
Most businesses conduct
transactions every day.
Most companies create a more
permanent record by recording
transactions in a journal.
To keep from getting overloaded,
business usually record transaction
to their journals every day.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
4
A GENERAL JOURNAL
page 57
Information for each transaction recorded in a journal is
called an entry
A journal with 2 amount columns in which all kinds of
entries can be recorded is called a general journal
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
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Using a Journal
 Information recorded in a journal includes the
debit & credit parts of each transaction recorded
in one place for accuracy
 Transactions are recorded in a journal in order
by date
 The recording of debit & credit parts of a
transaction is called double-entry accounting
 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. [Accounting Concept: Objective
Evidence]
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
6
CHECKS
page 58
•A business form ordering a bank to pay cash from a
bank account is called a check
•The source documents for cash payments is a check
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
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SALES INVOICES
page 58
A form describing the goods or services sold, the quantity, and the
price is called an invoice
An invoice used as a source document for recording a sale on
account is called a sales invoice
Sales invoices are pre-numbered in sequence to help account for
all sales invoices
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
8
OTHER SOURCE DOCUMENTS
receipt
A form on which a brief
message is written
describing a transaction is
called a memorandum
CENTURY 21 ACCOUNTING © Thomson/South-Western
page 59
A business form giving
written acknowledgement for
cash received is called a
receipt
memorandum
LESSON 3-1
9
OTHER SOURCE DOCUMENTS
Businesses use an electronic
calculator tape to total the amount of
cash received from sales for a day.
page 59
calculator tape
By totaling all the individual sales,
a single source document is produced
for the total sales of the day.
Time and space are saved by
recording only one entry for all of a
day’s sales.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
10
Making Journal Entries
page 60
Information for each transaction recorded in
a journal is known as an entry.
Each entry consists of 4 parts:
Date
Debit
Credit
Source document
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
11
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
2
3
4
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.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
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PAID CASH FOR SUPPLIES
page 61
August 3. Paid cash for supplies, $275.00. Check No. 1.
1
2
3
2
4
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.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 3-1
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TERMS REVIEW
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journal
journalizing
entry
general journal
double-entry accounting
source document
CENTURY 21 ACCOUNTING © Thomson/South-Western
page 62
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check
invoice
sales invoice
receipt
memorandum
LESSON 3-1